by South Carolina Mortgage Expert on November 21, 2009
If you are a first time home buyer please read the following list of the top 10 home buyer questions. In reality, any home buyer or anyone considering buying a home should consider asking the following 10 home buying questions. No matter whether you are buying your first home or you are a repeat buyer – if you have questions make sure you ask them. The last thing you want to have happen is that you have questions and you do not ask them until it is too late. Waiting until after you sign your mortgage documents could mean you get stuck with a mortgage you do not want or may not be able to really afford, or worse.
10 Home Buying Questions Every Home Buyer Should Consider
- Should I avoid telling my underwriter about some of my debt because I think something does not matter?
- Do you need to know if I apply for other credit while I’m in the process of buying a home?
- Is it okay to purchase large items like furniture with my credit cards just before settlement?
- Can I cash in my savings bonds that I’m supposed to be using for down payment?
- Is it a problem if I co-sign for a car loan or some other form of credit for my kids or anyone else?
- I want to change jobs, quit my job, or become self employed will this be a problem?
- Is I okay if I spend some of the money I used to qualify for the mortgage before settlement?
- Will purchasing a new car, van or truck affect my loan approval?
- Will it matter much if I miss a credit card payment, utility payment, or other credit account payment after I am qualified?
- Can I use my credit cards to buy things for my new home before I settle?
The chances are that if you ask your loan officer any of these questions or if you are thinking about doing any of these things above – your loan officer will say that you should not. The key to successfully negotiating the home buying process is to think about your credit, income and finances first before you take any action.
by Carolina Mortgage Pro on October 8, 2009
Even after your bid for the home you decided to buy has been accepted by the seller, there’s plenty left to do before you can rightfully move in. {In the following article, an experienced Toronto realtor will point out the most important steps of the process.}
As soon as the seller has accepted your offer, you should meet with your lawyer and talk about all the responsibilities under the contract. One of the important points you should cover is the costs you will be facing concerning the closing procedures, including Land Transfer Tax, disbursements and legal fees.
UTILITIES
Letters are sent by your lawyer to all municipal or regional utility departments to validate that there are no arrears or outstanding charges, such as gas, water or hydro expenses. These letters also verify if the equipment on the property is rented or owned and they also advise the various utility departments of the planned closing date, the new owner’s name and the name of the seller’s attorney. In these letters, it is also important to ask for information regarding the type of billing and if the billing is metered.
TAXES
A Tax Certificate is asked by your solicitor to confirm the amount of the current year’s taxes and to inquire as to arrears and outstanding charges for taxes for the current year and any preceding years.
BUILDING & ZONING
The Building and Zoning Department will need to get involved as to the particulars of zoning by-laws and restrictions relating to the distance from the street and side and rear lines, type of construction, lot areas and building areas, lot frontage and depth requirements and permitted uses. Another letter is sent by your attorney to this department, along with a copy of the survey to find out all this.
TITLE & EXECUTION SEARCH
Another important part is to establish whether the seller is the property owner and whether he has the right to convey the property, and that the property is not subject to any encumbrances, encroachments, easements, liens, agreements or mortgages that were not disclosed in the Agreement or Purchase and Sale. This is done by the appropriate division of the Land Registry Office, that manages the Search of title to the property. Also an execution search is completed in the appropriate Sheriff’s Office to verify that there are no executions against the vendor or previous owners of the property that would affect your title.
FINANCING
All the initial searches we have just described are taken care of by your attorney. In the meantime, it is up to you to make all the necessary arrangements concerning the financial side of the business. The amount of financing you will qualify for and the amount you will require to finish the business should be clear already before you have signed the Agreement of Purchase and Sale. There are a number of fees that you may not be aware of on the day of closing that relate to mortgage financing. Your legal adviser can advise you of these costs when the financial institution that you chose provides you with a Mortgage Commitment Letter.
BEFORE THE DAY OF CLOSING
You will also need a certified cheque to verify the balance of closing funds to your lawyer. Bring this with you when you come to sign all the documents needed a few days before the closing.
CLOSING DAY
Your legal adviser will arrange to meet with the vendor’s lawyer at a mutually convenient time at the appropriate Land Registry Office where he will sub-search title and complete final execution searches. The attorneys will exchange all the documents, keys and cheques and your solicitor will attend to the registration of all the necessary documents. Once the documents have been registered the vendor’s legal adviser may release the finances to his clients and your attorney may release the keys to you.
AFTER CLOSING
After closing your solicitor will prepare a reporting letter to you certifying your title and explaining all details of the transaction. When you move in to your new home check to see that all items in the Agreement of Purchase and Sale specified as included in the purchase price are left on the property by the seller. Let your attorney know without any delay if you think something is absent.
by Carolina Mortgage Pro on September 27, 2009
With more foreclosures now than ever before, America’s weak real estate market seems to set new dismal records each month. However, opportunistic real estate investment professionals are turning the recession into great profits with a bit of creativity.
The real estate investing strategy du jour is called ‘Bulk REO Investing‘ and is a real monster.
Let’s take a moment to analyze the basics of this incredibly lucrative business.
Understanding the notion of Bulk REO’s requires understanding of the foreclosure process.
When a home owner begins to miss payments on their mortgage, the lender begins to send late/overdue notices to the home owner. The lender directs the subsequent timing of the actual foreclosure proceedings. Between the formal beginning of the foreclosure process and the public auction is the ‘preforeclosure’ period.
Foreclosure is completed when the property is put up for auction. Ownership of the property is returned to the lender if the property is not sold at auction. The property then receives the designation of being an ‘REO’ or the more formal name, ‘Real Estate Owned’.
Lenders have no interest in owning property, and thus usually opt to list their REO properties with a local real estate broker in hopes of a retail sale. But as a consequence of the weak economy, lenders are frequently selling their REO properties far below their actual value. However, the purchase of a ‘package’ (or group) or REO properties is the trade-off for receiving such great prices.
Qualified real estate investors are increasingly finding once-in-a-lifetime opportunities in these REO packages. The most successful Bulk REO Investors will have a well-respected source of funding for their transactions. Some sources of funding for these transactions are: personal funds, hard money lenders, commercial lenders and non-conventional sources such as private investors and hedge funds. One excellent source of funding for Bulk REO Investment transactions can be found here: Bulk REO Investment Training.
by South Carolina Mortgage Expert on July 21, 2009
Mortgage Fraud in South Carolina: It Isn’t Worth It
In recent months, there has been quite a few headlines in the news regarding mortgage fraud – both right here in South Carolina as well as in the national news. Many experts point to mortgage fraud as one of the reasons that the country is experiencing a housing crisis. And as usual, it seems that the regulatory agencies are just a little late to the party — but they have finally arrived.
From A Warning Posted on The FBI Website:
Mortgage Fraud is investigated by the Federal Bureau of Investigation and is punishable by up to 30 years in federal prison or $1,000,000 fine, or both. It is illegal for a person to make any false statement regarding income, assets, debt, or matters of identification, or to willfully overvalue any land or property, in a loan and credit application for the purpose of influencing in any way the action of a financial institution.
Some of the applicable Federal criminal statutes which may be charged in connection with Mortgage Fraud include:
- 18 U.S.C. § 1001 – Statements or entries generally
- 18 U.S.C. § 1010 – HUD and Federal Housing Administration Transactions
- 18 U.S.C. § 1014 – Loan and credit applications generally
- 18 U.S.C. § 1028 – Fraud and related activity in connection with identification documents
- 18 U.S.C. § 1341 – Frauds and swindles by Mail
- 18 U.S.C. § 1342 – Fictitious name or address
- 18 U.S.C. § 1343 – Fraud by wire
- 18 U.S.C. § 1344 – Bank Fraud
- 42 U.S.C. § 408(a) – False Social Security Number
Mortgage Fraud in South Carolina: It Still Happens
Believe it or not, mortgage fraud is still happening right here in South Carolina. It is not something that “used to happen” but doesn’t happen anymore. If you are aware of any mortgage fraud victims or scams, be sure to contact the FBI.
by South Carolina Mortgage Expert on July 10, 2009
Last Lender Makes Announcement of Minimum 620 Credit Score
For some time, there has not been a minimum credit score requirement for South Carolina FHA streamline refinance loans. Yesterday, it was announced by the last major lender that now they are requiring a minimum of a 620 credit score on all South Carolina FHA streamline refinance loans. The major announcement came from TB&W that they were moving their minimum credit score requirement to 620 for all South Carolina FHA streamline mortgage refinances.
Credit Score Announcement Details
FHA Streamlines (credit and non-credit qualifying) and VA IRRRL’s with Credit Scores below 620 must be LOCKED prior to July 13, 2009 AND must CLOSE (Note Date) no later than September 15, 2009, and must be delivered to TBW within 10 days after closing Loans in this category locked on and after July 13, 2009 will require a minimum FICO of 620.
Clients will be required to obtain a 3 Repository credit report and utilize the standard method of determining qualifying FICO. Any Conventional, FHA (including Streamline Refinance), or VA (including IRRRL) loan that exceeds $417,000 with a Credit Scores below 660 must be LOCKED prior to July 13, 2009 AND must CLOSE (Note Date) no later than September 15, 2009, and must be delivered to TBW within 10 days after closing Loans in this category locked on and after July 13, 2009 will require a minimum FICO of 660.
Clients will be required to obtain a 3 Repository credit report and utilize the standard method of determining qualifying FICO. In addition, any previously announced minimum Credit Score requirements that TB&W has put into place, that did not have a specified Closing date, will be required to be LOCKED prior to July 13, 2009 AND must CLOSE (Note Date) no later than September 15, 2009, and must be delivered within 10 days after closing. Therefore, any loan, regardless of whether it may be locked, registered or approved, that has a qualifying credit score below 620 (with the exception of those loans that have specified higher FICO requirements) must CLOSE (Note Date) no later than September 15, 2009.
TB&W will continue to allow non-traditional credit for those borrowers with no useable credit for the loan programs that allow the use of such credit in accordance with published guidelines. TB&W is fully aware that these limitations may result in the inability for a particular loan to meet these specified deadlines. TB&W will work as diligently as possible to accommodate all loans in the pipeline. We will be unable to grant any extensions or exceptions to these requirements.
South Carolina FHA Streamline Refinance: What This Announcement Means
Remember, according to FHA guidelines, the FHA Streamline refinance program doesn’t officially require a minimum credit score – but now virtually all lenders require a minimum of a 620 credit score. Taylor, Bean and Whittaker was the last major US lender to not require a minimum credit score. It is possible that there are still smaller lenders who can offer the South Carolina FHA refinance streamline loan with no minimum credit score requirement, but don’t expect it to be easy to find them.
