First Time Home Buyers in North Carolina don't know what they don't know... so they end up anxiously asking all of their friends for advice. Because none of their friends are Mortgage Loan Officers, they end up just hearing horror stories, adding to the anxiety. I try to provide simple, educational tutorials that help with the basics in the Mortgage Loan process, especially for First Time Home Buyers in NC.

Buying the House, picking out the Colors, and the cabinet hardware can be soooo much fun! The "Mortgage" part of buying a house doesn't have to be DIFFICULT.

Start Here:

• Take a Peak at your Credit. Your Credit is more important than having enough cash, or getting the best mortgage rate. Your credit rating, or LACK of credit rating will be the single determining factor for when MANY people can buy a home. Minimum Credit Score Requirements for a Mortgage will vary based upon the mortgage program you are applying for. The Veteran's Administration actually doesn't have a minimum credit score, however most banks want a score of at least 620. USDA Home Loans have a minimum score of 620 - and FHA Loans can actually go all the way down to 580.
• Start Gathering Documents the Mortgage Lender Needs EARLY. We need your last 2 years of W-2s, a months worth of Paystubs, 2 months of Bank Statements. We need ALL PAGES of these documents, and if you can provide these at loan application, it makes life so much easier! If you are getting a GIFT for part of the Closing Costs or Down Payment, remember that we will need a copy of the Gift Letter, and the assorted documentation, too.
• If you change your Contract Along the Way - Forward that new Contract to the Lender! I can't tell you how many times someone is buying a new home, and they add some upgrades to the home, and forget to let the Mortgage Lender now. We find out when the Appraisal comes in low. This is an expensive, and time wasting event that can easily be avoided.

Shopping for a Mortgage Lender? Well, first off, we'd like to be your first call, but more importantly, there are many things First Time Home Buyers should know about shopping for a mortgage that don't involve, "What's your rate?".

When you buy a House - you get a Raise! Uncle Sam definitely sees benefits in having homeowners, so you get to "write off" the interest you pay each month on your taxes! You might also be able to write off PMI and Real Estate Taxes! We advise First Time Home Buyers to see a tax professional, and consider changing your W-4 when you purchase! This way, instead of the government giving you a $2400 refund... you get a $200 RAISE! (seriously, you can bring home more each month and not owe on April 15!)!

We also offer the MCC | Mortgage Credit Certificate for those who qualify. This program actually DOES change your W-4, but it does not diminish the tax credit that you can write off each Spring. It's an ADDITIONAL Tax Credit available for those who have been renting for the last 3 years in NC.

You CAN get into a house with absolutely no pennies out of pocket - but it's HARD. We would suggest that you have at least $1500 if you want to buy a house.

There are several Big Mistakes we see NC First Time Home Buyers make - but most often we don't run into any nightmare situations with mortgage closings! Credit Can be fixed, money can come from a Grant (if not a gift) and we still have 2014 Mortgage Tax Credits!

Stop Renting! Now is a great time to buy a house! Call Steve and Eleanor Thorne 919 649 5058

The information contained on this website, NCFHAExpert or any other Steve Thorne, NC Mortgage Expert website is for informational purposes only and is not an advertisement for products offered by RCBNA. The views and opinions expressed herein are those of the author and do not reflect the policy or position of RCBNA, its officers, parent, or affiliates.