Regina Drury Real Estate Group Blog Page

Here you will find the latest blogs that we have written. You'll find useful information like how to buy a house with 100% financing, what the typical closing cost are when you sell your home, and informational blogs like how to prepare for an upcoming hurricane. 

We also created Blog Categories to make it easier for you to browse, click on one and get informed!

 

Oct. 19, 2017

7311 Wolfhound Court House Tours

Posted in House Tours
Oct. 18, 2017

Can I buy a House after a Foreclosure or Short Sale? How Long Do I have to Wait?

keys

Foreclosure, short sale, bankruptcy, repossession... After any of these major events it often surprises people when we tell them that they are pre-approved to get a loan to buy a home again.  Of course you won't be able to get a loan right away but it you might be surprised to know how quick you can get a mortgage again.  Since the waiting period varies on the different loan types we'll give you some basic information for the major loan options.  Please consult your mortgage representative for more information.

Conventional Mortgages

Conventional mortgage (not for jumbo loans) typically requires at least 3% down payment.  Here are the waiting periods for Bankruptcy, Foreclosure, and Deed-in-Lieu.

Bankruptcy Chapter 7 or 11 waiting period is 4 years or 2 years if there was extenuating circumstances such Death (not yours), Illness, Job Transfer, or Accident Resulting in Serious Injury.  Extenuating circumstances are things out of your control that dramatically affected your ability to pay your mortgage.  

Bankruptcy Chapter 13 waiting period is 4 years from discharge date or 2 years if there was extenuating circumstances.

Multiple Bankruptcy Filings will require 5 years or more if the bankruptcies were in the past 7 years.

Foreclosure waiting period is 7 years or as little as 3 years if there were extenuating circumstances.

Short Sale or Deed-in-Lieu of Foreclosure was a smart move if you did that instead of foreclosure because the waiting period for that is only 4 years or 2 years if there were extenuating circumstances.

USDA Mortgages

USDA is a great option for getting a 100% loan.  Here are the waiting periods.

Bankruptcy Chapter 7 waiting period is 3 years.

Foreclosure waiting period is 3 years.

Short Sale waiting period is 3 years.

VA Mortgages

Here are the waiting periods for getting a VA loan.

Foreclosure / Deed-in Lieu / Short Sale waiting period is 2 years from date of completion.  1 year is possible if there were extenuating circumstances.

Bankruptcy Chapter 7 or 11 waiting period is 2 years from date of discharge.  1 year is possible if there were extenuating circumstances.

Are there other options?

Yes of course there are other options.  You could pay cash for the property if you have the money.  Also there are some portfolio lenders that might do the loan at a higher interest rate or with more money down.

How do I find out if I qualify for a loan?

It's possible that you might be declined by a lender and then find out from another lender that there was an option for you.  It's important to talk to an experienced lender when discussing your options.  If you don't have one, we can help.  Pat Holsten with American Security Mortgage helped us with the information for this and I'm sure she'd love to help you too.

Regina Drury

Oct. 12, 2017

Rent To Own In Wilmington NC

Rent to Own: Advantages and Disadvantages & How It Works

There are huge financial and personal benefits to owning your own home.  Statistics show that 90% of millionaires became so through owning Real Estate.  To buy a house you'll need a good credit score, consistent income, and possibly a down payment.  With a good credit score and consistent income you might be able to get 100% financing and need only $500 as a down payment.  Sometimes you need time to repair your credit or need more time at your job before you can get approved for a loan.  When you need a little more time, but want your rent to go towards your home purchase, then rent to own is an option.

Is Rent to Own a Good Idea?

Rent to Own is a popular choice for those who can't purchase yet.  Think of renting to own as being similar to leasing a car.  You sign an agreement that says you have a period of time to exercise your option to buy the property.  You pay an option fee for the right to buy the house at the price you agree to in advance.  During that time period you pay monthly rent until you are able to purchase the property or until the agreement date ends.   

Are you sure you can't Buy a House yet?

Many people assume or get bad advice.  We work with the best lenders in town and can help you with getting the best advice.  Many of our clients were previously turned down by other lenders prior to coming to us.  Whether you want to buy a $100,000 house or a five million dollar house, we will help you.  There are 100% loan options, self employed bank statement only loans that require no tax return, Reverse Mortgage loans if you are at least 62 years old, and many other great loans.  Most banks only know about the few loan options they work with.  We can help you with all the options out there to fit you with what is best in your situation.      

Why do Sellers Choose to Rent to Own?

There are many advantages to a seller for choosing to Rent to Own their home instead of just renting it or just selling it.  First advantage is there's a longer term of guaranteed income.  There's a written contract typically for one to five years with an option fee paid that a buyer has paid in advance. 

Another advantage is the tenant will probably take better care of the home because they plan to purchase it, although be careful, sometimes a tenant will make major changes to the home when they think they will be buying it.  I had a tenant paint kitchen cabinets black because he thought he'd be buying the house.  When he cancelled the agreement I was left with fixing the house.  If the buyer doesn't buy the property, typically the option fee they paid in advance is non-refundable.

My favorite advantage to a rent to own is sellers can have in the agreement that all repairs and maintenance will be made at the buyers expense.

Equity increase is another advantage.  While they are paying rent, you'll be applying that rent to the mortgage and reducing the balance due.

Price lock can be another advantage but it can also be a disadvantage.  You'll lock in a price that you both agree to and it will typically have an escalation cause for each year's price increase.  Sometimes you'll find the market has increased higher than what you built into the contract and you may be disappointed if you sell at the reduced price.  However if the price you set is higher than the current value and the buyer is getting a loan to purchase, their loan will be contingent on the appraised value.  If they don't have the cash to make up the difference, they won't be able to get the loan and buy the property.  At that point you'll be in a situation of deciding if you are willing to reduce the price so they can purchase it.

Rent to own is typically very beneficial in a soft market when houses are selling very slow.  

How does a Rent to Own Work?

The owner and tenant will agree on a monthly rent, a purchase price, a time period for the purchase options, and the option fee deposit.  You'll sign a legal contract with all of those terms in it.

What does it mean to Rent to Own a Home?

Rent to own means the property has an agreement between the buyer and seller with a time period and sales price agreed upon.  A portion of the rent might be applied toward the purchase if agreed upon in advance.

What is a Lease Purchase Contract?

The Lease Purchase is the agreement in a Rent to Own.  It combines a Rental agreement to a Purchase Agreement.

Can I get Credit for my Rent Paid?

That depends on if it's in the written agreement that both parties agreed to.  Also ask your lender in advance before signing the agreement about how that credit can be applied to your purchase.  Lenders are very strict about what funds can be used toward the purchase and might not allow it if you don't pay it in a separate monthly check or some other way.  Consult your lender for advice in advance before signing the contract.

Do I need an Attorney for a Lease to Own or Rent to Own?

Yes, I would highly recommend a Real Estate Attorney write up the agreement and that it is recorded at the records office.  Your attorney will be sure that your agreement meets the current laws.  Who pays for the attorney?  Good question!  That's up to the buyer and seller to agree on who will pay.

Will Rental Payments Improve my Credit Score?

No not usually unless they report it monthly to the three major credit agencies: Equifax, Transunion, and Experian.  You cannot as the payor self-report the payments.  It would have to be reported by the one receiving the payment.  Most landlords will not report it.

Do Late Payments affect your Credit Score?

It depends again on if the seller / landlord reports the late payment.  Also be careful that your agreement doesn't have a clause about the contract being voided if you pay late.

Where do I find Rent to Own Houses in Wilmington, or Rent to Own Houses in Leland, or Rent to Own Houses in Hampstead or Other Areas?

Typically you'll find them advertised on Craigslist, Social Media, and sometimes in the mls.  In a very hot Real Estate market be careful about why a house is Rent to Own. 

There are companies that are built on Renting to Own homes.  They have higher down payments, higher rent, and expect that the buyer will not be able to buy.  Therefore they get your deposit, your higher rent, and they get to keep the house.

Where do I Start?

First step is let's be sure that you can't qualify to buy a house now.  If you can be approved for a loan now, you'll have more house options that renting to own.  You'll also be able to lock in your interest rate and start paying your own mortgage.  Buying your own house is the 1st step to building wealth and a financially better future for your family.  Regina Drury Real Estate Group is a great place to start your home ownership path.  

Contact Us

regina drury

Oct. 11, 2017

First Time Home Buyer | How to Buy Your First Home In Wilmington, NC

Buying Your First Home in Wilmington, NC? Here's What You Need To Know!

Buying your first home can seem stressful or overwhelming. Having an experienced, caring Realtor to assist you can make a big difference! They can help you with where to start, what the steps are, and make the process of buying a home smoother.House cloud vision

How Do You Choose A Realtor?

Start with reading reviews on Google and Facebook. The advantage of reading reviews on Facebook is that you are able to see the person who wrote the review by clicking on their profile to verify credibility. 

Next, call the Realtor or send a message. Do they respond back quickly? Do they ask questions about what's important for you to buy your 1st home? Once you've chosen your agent you'll move on to the next important step.

Get Pre-Approved Before Looking At Houses!

Your Realtor should be very helpful with recommending lenders that best fits your loan needs. Not all lenders have the same loan programs so it is important to look, and decide what is best for you. 

We have a great article about 100% Loan Options that you may find very interesting; many first time home buyers purchase their 1st home with 100% financing. There's also a great link on our website where you can find houses that might qualify for the 100% Loan in Wilmington, 100% Loan in Leland, 100% Loan in Hampstead, and other areas.

I Got Pre-Approved Now What?

Your Realtor can set up a search so that everytime a house comes on the market that fits your criteria you'll be notified. This will be better than Zillow or Trulia because they will be "live" accurate data directly from the MLS.

I found a home and my offer was accepted! Now What?

Congratulations! Getting your offer accepted is a really exciting feeling!  Next step you'll need to write a check for the deposit (escrow). It's usually 1% of the purchase price but can be as low as $500 if the seller agrees. 

Next, your agent will set up home inspections. You'll also start the process of getting your loan by providing documentation to your lender. They usually need a few paychecks stubs, your last tax return, and your last bank statement. 

You'll need to choose an attorney that will review your mortgage documents with you at closing. Your Realtor should have recommendations.

How Long Will All This Take?

Typically from the time you find your house to when you close it will take around 30-45 days, but be prepared for it to be longer.  After the home inspections your agent will review with you the repairs you would like to ask the seller to fix.  This is another negotiation.  Don't expect the seller to do all the repairs.  They typically will do some and sometimes will offer a credit instead of doing any repairs.

Congratulations It's Your Closing Day!

The day before or on the day of your closing you'll do a walk thru of your house to be sure everything works and nothing has changed. This is also when you'll transfer your utilities over.

After the walk thru, you'll go to the Attorney's office to sign your loan documents. This takes typically 30 minutes to an hour.  After you leave, the attorney will get funding approval from the bank and then record the sale. This usually takes a few hours from after you signed. Once it's recorded the house is yours and you can move in! Keep in mind that keys won't usually be released to you until after it's recorded.

It's an exciting feeling to own your own home. You can paint it how you want and each month you will be paying your own mortgage instead of your landlords. Congratulations on making a smart decision towards building wealth!

We'd love to help you get your 1st home! 

We help 1st time home buyers every day with getting their first home.  We have friendly, knowledgeable, positive thinking agents and always aim to get you what you want.  Feel free to contact us if you have more questions or if you want to get started.

Contact Us

Regina Drury

Posted in Realtor Insight
Oct. 3, 2017

Reverse Mortgage Purchase Program

Transcript

Hello this is Regina with the Regina Drury Real Estate Group in Wilmington North Carolina and I just got back from a two hour meeting with a really great lender here in Wilmington North Carolina and she told me about a interesting loan program that I wasn't aware of. So many of us have heard about reverse mortgages right but did you know that there's a program called the reverse mortgage purchase program, yes reverse mortgage purchase program. Basically what that is it similar to reverse mortgage you know if you familiar verse mortgages when you're a certain age you can purchase a house and if you have equity you can get a monthly check every month for the equity that's in your home. You know of course they base it on what's your longevity and how long they expect you know that you'll be living in the house to do their equation.

Well this reverse mortgage purchase program, to do this program basically the way that it works is you are able to go and purchase the house let's say for example a $500,000 house and they do an equation based on the oldest. So if there's a couple let's say one person is 62 and the other one is 55 well they do an equation you have to be at least one of you have to be 62 and the equation is based on whoever is the youngest and their longevity so how long that they'll be living. And then they figure out what your down payment is gonna be so for example you might buy a $500,000 house and they might say okay for this program you only need $250,000. And so you buy the $500,000 house with $250,000 and then that's all that you need so there's no monthly payment done. So basically instead of you know being in your house and getting money out of your house you're able to purchase a house and only need a certain downpayment to be able to purchase the house and that's it no further payment. So it's a really cool program it's uh well it's not something I've ever heard of before. So I checked with a couple of lenders in town to see if it's something that they do and well they hadn't heard of it before so many have heard of reverse mortgage but they had not heard of reverse mortgage purchase program. So again just to summarize my first mortgage purchase program means that you can go find the house that you prefer to live in and you only need a certain down payment and then that's it you don't need any monthly payment there is no monthly payment on the house.

Now some people may have questions I had a question about what happens if one of the spouses was to pass away and they said used to be a long time ago that if somebody passed away then they could call the mortgage to do. But now if somebody passes away right there is no clause that that loan has to be paid right then, so as long as the other person that's in the house remains in the house that it's their personal residence. Then that loan is still intact meaning there's no monthly payment the reverse mortgage is still intact you don't need to sell the house yet until at some point that neither party is living in the house any further. So if you have any questions about that or if you want to know more information you know send me a message I'd love to you know put you in the right direction for lenders that work with this program. It's pretty awesome so imagine you know instead of having to downsize imagine if you could stay in a house that you're comfortable in you know a house that you're already comfortable in and not have to make any monthly payments I mean that's it's pretty cool. So again this is Regina with the Regina Drury Real Estate Group and I'm gonna check out right now but I'm gonna come back in about a minute. And I'm gonna talk to you about the Bank Statement Only Program that's the program where you can build a buy a house just based on the deposits in your account not based on your w-2 or your 1099s or anything so it's a really great program. I'm gonna bring you that in a minute again Regina with the Regina Drury Real Estate group if I can answer any questions reach out talk to you then.

Contact Us

Oct. 3, 2017

128 Whitman Ave House Tour

Loaded with charm! 3 Bedrooms 2 Baths plus a Bonus Room. Located on 1/2 an acre in Castle Hayne very close to Wilmington. Beautiful hardwood floors throughout the house!

Posted in House Tours
Oct. 3, 2017

1607 Swordfish Lane House Tour

Start today making memories for your family as a Second home and use as a Vacation Rental. Beautiful 4/3 with pool. You are only a short walk to the beach and have ocean views from Master.

Posted in House Tours
Sept. 27, 2017

Bank Statement Only Program | What Is It And How To Apply

Designed for the Self-Employed who have had a difficult time getting a mortgage because they don't show enough income.  This program uses your deposits on 12 or 24 months of your Bank Statements of your Personal or Business Accounts for your Income Proof.

What do I need to Apply?

You'll need to fill out an application and 12 to 24 months Bank Statements

What are some of the Qualifications of the Loan?

- It Must be a Home you Plan to Live In

- You must be a US Citizen

- Must have a 500 Minimum Credit Score

- Must be Self Employed or 1099

What Price House can I Buy with this Loan?

It will, of course, be based on your income and debt.  Your income will be calculated as a certain percentage of your total Bank Deposits.  This loan can be used to purchase a house for up to 2 Million.  Your Debt to Income Ratio will have to be under 50%.  

How much Down Payment will I Need?

That will depend on your Credit Score.  If your Credit Score is at Least 650 you might be able to Buy a House with this program with as Little as 10% Down.

Choosing an Agent to Help you

When choosing an agent, be sure to go with an agent who has expert knowledge of listing and selling property.  The Regina Drury Real Estate Group has that and more.  We look to provide you with all of our expert knowledge and focus on maintaining a high degree of customer service that will leave a lasting impression.  Contact us today to talk more about your Real Estate needs.

Get the Right Agent to Help You with Buying and Selling your Home

Regina Drury

Logo

Transcript 

Hello this is Regina with the Regina Drury a Real Estate group again in Wilmington North Carolina and I want to talk to you today about another great loan program that I heard of which is called the Bank Statement Only Program. Yes, Bank Statement Only so what does that mean? Well for those that are self-employed or maybe 1099 and you know we sometimes have a difficulty of getting a loan because well you know we get to write off certain things in our tax returns. Right, like I don't know cell phones, car expense, I don't know dinner events, whatever and so with these programs well what happens is normally they look at the bottom of your tax return to see what's your net income. And sometimes your net income isn't enough to be able to get the loan. So there's this really cool program that basically qualifies you for the loan based on the amount of money that either goes into your personal account or into your business account. So yes, they look at either your personal account or your business account and they'll look at it for like the last you know one year or two years of bank statements.

So let's say you're a hairdresser or a contractor and you've been thinking that you want to get a loan and your bottom line net on your tax return has been a problem. Well this program is really cool for those that are self-employed because if you can provide your bank statements for the last two years and they can add up you know your deposits they will then take a certain percentage and qualify you for the loan based on that percentage. So like for example let's say that you make I don't know fifty thousand dollars in the year well maybe a hundred thousand dollars in the year that make me better numbers. Let's say you make a hundred thousand dollars there's a hundred thousand dollars of deposits in your account well then they might count fifty percent of that and say alright we're gonna use your net income as fifty thousand dollars. So it's a really cool program and there wasn't really a bottom credit score to get approved like I asked you know what's the minimum and the lender that I spoke with said well she had one where they got approved for a five hundred credit score.

So I thought well that's really awesome, you know I spoke with Lauren with on cue to get some information about this loan and so it was really informative I didn't realize that somebody could get a loan for a credit score you know under 600. And sure enough not only can you get a loan for under six hundred credit score but also not just based on your tax return. So you know what kind of down payment do you need? Well she gave me a few an example she said you know possibly somebody with a credit score of at least a 650 they might only need a 10% down payment. She said you do need to be a US citizen so that is a criteria that's mandatory, closing can take up to 45 days. And let me see trying to think what else went over I had a lot of notes on this I'm a really interesting program the debt to income ratio. So when you're looking at what's your monthly debt with the house with the new mortgage versus all your other monthly debts she says that your ratio can't be more than 50%. So keep in mind the income they're calculating the income based on the deposits in your bank account and it might take about 50% of the deposits and count that is then your income. And then they're gonna look at what other debt that you have and your debt to income ratio can't be more than 50%. So hopefully I've given you some good information about this, this is for only owner-occupied so if you're renting and if you're a contractor or your real estate agent or anyone that's paid by a 1099 and you're self-employed it's a really great program if you've been having a problem in the past with either maybe your credit score has been a little bit too low or if you've had problems because your net income on a tax return been enough after your write-offs, so it's something to think about. Again down payment minimum is 10% if you have a credit score like in your 700 then you're probably looking at about a 10% down payment but if your credit score obviously is under 700 then you're probably going to be looking at needing more down payment. So I see a few lenders have jumped onto this conversation, so maybe if they want to you know add anything to this bank statement only program you know other than of course saying use me use me.

If you want to you know add anything additional that we should know about the program feel free to let us know and I think it's really interesting. So you know I just bought you a few minutes ago about reverse mortgage to purchase and now this bank statement only program, so if you know of a great program out there that I should know about reach out to me let me know about that too. And if you're thinking of course about buying a house I hope you'll use me as your real estate agent I'm Regina with the Regina Drury Real Estate Group and if you're even not in our area or anywhere in the United States and you would like more information about these kind of programs certainly reach out to me let me know and we'll see if we can get you some answers right. Well I'm Regina with the Regina Drury Real Estate Group and I'm in Wilmington North Carolina and it's been a pleasure, to talk to you soon.

Contact Us

Sept. 25, 2017

As A Senior I've Moved 30 Times, This Is What I Learned

Written by Linda Brett-Kell, Senior Moving Specialist at Regina Drury Real Estate Group.

I think you will agree anytime you move, whether it’s across town or across state lines it can be challenging. I've moved about 31 times! I have experienced moving both across town and throughout many states.  As a Senior, it offers some additional challenges and things to think about. It is from my experience I want to share some of the things I learned, as well as some things I may have done differently.

Linda Brett-Kell

Relocating as a Single

Sometimes as a Senior we find ourselves single again, due to death of our loved one or divorce. While these two life events in and of themselves are traumatic, couple that with the thought of relocating and it can be overwhelming. I do know this from experience. I am a list maker, it keeps me organized and focused, so I trust you will find the lists I make in this article helpful for you.

First, let’s take a look at things to consider when you find yourself single again and are considering relocating.

 

1. I feel the most important thing at this point, is to avoid any hasty decision. Allow yourself, time to make a solid financial decision.

2. Look at all your current expenses, mortgage, insurance, living expenses and how your income has been affected due to your loss.

3. If you are living in a home that is paid for, you have more options to consider: A. stay in your home or B. Consider downsizing, to cut costs, particularly if your income will also be cut.

4. You will have a lot of well-meaning friends and family, who will want to weigh in on exactly what you should do. Prior to my husband's death, he gave me some very good advice that I want to share with you. “Linda after I’m gone you are going to get a lot of advice from friends and family, I’m going to encourage you to do whatever it takes from this point forward to be happy. That as you know may not be what everyone else wants, remember they are not walking this path.” Trust me when I say this advice helped me tremendously and I hope it helps you.

5. If you do decide that it’s in your best interest financially, and emotionally to sell your home, find a reliable Realtor who will go the extra mile for you. Interview carefully and find someone you connect with and will listen to your needs.

Moving out of State: This perhaps can be the most challenging 

Each state has different tax laws, the housing market can vary greatly, current Medicare plan may not be effective in new state (I found this out the hard way). 

Additional things to consider:

* Is your current bank or credit union available in the new city you are considering? If not establish an account in your new location prior to moving have any direct deposits changed to new bank. (this can sometimes take 2 months) .

* If you are using a local drug store for your prescriptions, switch to a chain Pharmacy or grocery chain that you will find in your new location, do this at least a month before you move.

“YOUR WHY?”

What is your motivation for moving to a new state or City? To be closer to family, remember our children live very mobile lives too. I have seen Seniors move to be near their children and then the children due to their jobs, relocate. Make a list, pros and cons if you will what are you actually wanting to find in your new location?

a. More Senior communities

b. Better climate

c. More active lifestyle

d. Beach community

e. Mountain area

f. Lower tax structure

g. More opportunities for volunteer work

h. More opportunities for part-time employment

A few things you want to consider and I’m sure you can add to this list

When possible take time to visit the new area you are considering to make a well-informed decision. Searching the internet for information on areas, communities etc. is fine, however, a personal visit is far better in making an informed decision. Keep asking yourself “what do I really what”. When that is clearly defined you can move forward.

There are many things to consider but since it’s a Blog rather than a Book, I trust this information has been helpful.

Choosing an Agent to help you

When you or someone you know who is a Senior is considering a move whether across town or across state lines…..find a Realtor who has your best interest at heart, and someone who has had experience working with Seniors who are relocating.  The Regina Drury Real Estate Group has a team with expert knowledge and experience.  We will provide you with a high degree of customer service that will leave a lasting impression.  Contact us today to talk more about your Real Estate needs.

Contact Us

Regina Drury

Posted in Realtor Insight
Sept. 12, 2017

How To Buy A House With 100% Financing In Wilmington NC

Have you considered purchasing a new home but feel that you're biggest obstacle is coming up with the down payment and timing your purchase with when your lease is up?  We're very fortunate in the Wilmington, NC area that we have 100% financing available!  

How Much Money Do You Need for 100% Financing?

If the seller agrees to pay your closing costs then you might need as little as $500 - $1,000.

How Long Does it Take to get a Loan?

Typically from the 1st moment you contact the lender to when you are sleeping in your new home is 30 - 45 Days.

What 100% loan options are there?

If you are a veteran then a VA loan might be a great option.  Otherwise another popular 100% loan option is a USDA loan. USDA is an option for some parts of Wilmington, Brunswick County, Pender County, Onslow County, and all the other counties in the Southeast North Carolina area.  If you don't qualify for the USDA loan, there's a community opportunity loan at First Citizens that allows your income to be higher than USDA.  If your income is still too high then there's also a Down Payment Assistance program which can help you get in with as little as 1% of the purchase price!  100% loans are also available at State Employee Credit Union. Well, we hope we've got in your mind that there are lots of 100% options.  100% loan options aren't available at all banks, but we can help you find one that can help you.  

100% USDA Loan Info and Available Houses

Here's a link to a great webpage that gives you more information on qualifying for the USDA loan and also shows you what houses are available. USDA Loan

City of Wilmington Home Ownership Pool (HOP)

If you are looking to purchase within the City of Wilmington and meet their program requirements, then the HOP is a great opportunity!  This loan program is 100% financing with as little as $500 down for homes up to $224,000.  The best part is that it's a very low interest rate and you can get 0% interest rate for 40% of the loan fixed for 30 years!  The requirements include a credit score of at least 620, cannot currently own a house, and income up to $38,200 for 1 individual in the household, or up to $43,650 for 2 in the household, or $49,100 for 3 in household, or $54,550 for 4 in the household.  It increases more if you have more dependents in your household.  The first step for this program is to attend the FREE Homebuyer class.  It's an all day class and is available once a month.  It fills up fast so sign up quickly!  Here's a link to their schedule.  After looking at the program requirements if you are interested here's a link to their application.  Regina Drury Real Estate Group has helped a lot of first time home buyers with this program and believes it's one of the best loans in the area! 

Ok you got your Pre-Approval done, Now what?

You got in contact with a lender and got your pre-approval.  Typically it doesn't take much time and many times you get an answer within a few hours or less!  So what's the next step?  Your lender will tell you what price range you approved up to or what price range to look at that will meet your target monthly payment.  The next step is find a great Realtor!

How to choose a REALTOR

This is a really important step.  A great Realtor will be full time and will take the guess work out of the process.  They will have a lot of experience with 100% loans.  Think of the agent as your professional guide through the process.  They will save you time, headache, and potentially money.

The Regina Drury Real Estate Group has expert knowledge of listing and selling property. They will focus on providing you a high level of customer service that will leave you with a lasting impression.

Regina Drury Real Estate Group

Decide Where you Want to Live

Your Realtor can set you up with instant notices when houses that meet your criteria come on the market.  When searching for a house be careful about using websites such as Zillow or Trulia because they aren't accurate and don't have all the available houses on their website.  When searching for a house, you want to use a website that is loaded directly from the MLS and has all the available houses for the area you want to buy in.  You can see all the available houses for the entire Southeast North Carolina area on ReginaDrury.com

Make a List of What You Prefer in Your New Home

Do you want a new house? How many bedrooms should it have? How many bathrooms? Does it need to have a garage? What school district do you prefer? Do you prefer a 1 story or 2 story house? These are all typical questions your REALTOR will ask you when starting the search for your home.  

How Do I Keep Track of the Homes I've Seen

In a hot market if you find a house you like, don't wait to put in an offer!  Many houses in a hot market are getting multiple offers and are going under contract fast!  Don't feel like you need to see more houses before you make up your mind because waiting to see more could cause you to lose the house that you love.  When searching for a home, it's best to narrow your selection down to 4 or 5 homes.  Seeing more than that can confuse you or worse you might start thinking if you could have that kitchen with that backyard with that master bedroom.  LOL

Make an Offer

Here's where the stress starts! You want the house but you don't want to overpay and you don't want to lose the house. This again is where an experienced agent can assist you with what is a fair offer. Many times people ask their friends and family for advice but be careful about the advice.  What worked a few years ago might not be the same today.  In a hot market it can be challenging to get a lower price or closing cost from a seller. Some areas houses may be going over the asking price! Your agent can help give you advice if they are in this business full time and know the market.

You'll Need a Check for the Deposit

You'll need to put a deposit down within 5 days of your offer getting accepted.  The deposit depends on the price range of the house.  For the 100% loan option we typically see a deposit of $500-$1,000.  This deposit will be given back to you if the seller doesn't accept your offer, or you cancel before the end of your due diligence.

Ask for Closing Costs to be Paid

For 100% financing this is a VERY important step!  Your loan will cover the purchase price but you'll still need $4,00-$9,000 for closing costs like attorney's fees, appraisal, inspection fees, one year of insurance, taxes, etc.  Don't be surprised if to get these closing costs paid by the seller that you might have to offer the list price or more!  Again, a great agent can advice you on what they are typically seeing in that current market so it can help you make a decision. 

Appliances

Stove, dishwasher, and built-in microwave are included typically but appliances like the refrigerator, washer, and dryer are items you'll need to ask for if you want them.

Curtains, Curtain Rods, and Blinds

Curtain rods and blinds are included with the house if they are currently there.  Curtains however you'll have to ask for if you want them.

You're Under Contract, Now what?

Congratulations you're under contract! Next step will be to set up inspections! Your agent will recommend home inspectors that they typically have had a lot of experience with.  It's your choice who you want to use. Your agent can set up the inspection times so that you can preferably be there.  Many of the inspectors prefer to be paid at the time of the inspection but your agent might be able to make arrangements for them to be paid at closing so that the money for closing costs from the seller can pay them.  Keep in mind that if they do the inspections and you don't buy the house that you'll still need to pay the inspectors.  

Inspections

After a home has a home inspection and / or other inspections there will be a report sent to you and your agent.  You'll review the report and then write up a request for repairs for the seller to do.  Keep in mind this is another negotiation. The seller might or might not agree to all of your request.  In a hot market the seller might say the house is sold as is. Usually if it's a sold as is, you'll know during the original price negotiation.

Appraisal

Your lender will order an appraisal from a 3rd party company. The house must appraise for at least the purchase price.  If it appraises for less than your purchase price you'll need to come up with the difference or ask the seller to reduce their price.  If you can't come up with the difference and they are not willing to reduce then you'll have to terminate the contract.  This is another reason why it's very important to work with an experienced REALTOR.  They will advice you before writing your offer on what the comps are for the house and will notify you if there could be an appraisal issue.  In a hot market when houses are going over their list price this is something to be very careful about because you might win the bid but then lose the house when it doesn't appraise for enough.

Also be aware that an appraiser is not a home inspector but may look for certain issues such as missing roof shingles, a working HVAC, peeling paint on old houses, mold, water under the crawl space, etc.  If they find these issues they might note it in their report and with 100% loans these issues would need to be fixed to get the loan.  Again, a great Realtor will already know all this and will let you know if they see an issue when you are looking at houses before you make an offer.

Final Walk Through

Great news you're all set to close on your new home! The day before or on the day of your closing you'll do a walk through to make sure nothing has changed in the home and to be sure everything is still working.  This is an important step because after closing the house will be yours so you want to be sure nothing has changed.

Congratulations: Closing on your Home

The day you go to closing you'll sign paperwork but you won't always get the keys at that time.  Keys will typically be given to you towards the end of the day after the bank has funded your loan and the attorney has recorded the sale at the courthouse.  Usually by 4pm this is all done and the home is yours!

Buying a house is a very exciting time!  Buying a house with 100% Financing is also a great step toward building wealth for your future.  

 

Contact Us