E Pluribus Unum

 Most people are familiar with the phrase "E Pluribus Unum."  Even if you can't remember exactly what it means, you know the gist of it.  Its exact translation is "Out of many, one."  And it is a phrase that appropriately applies to choosing your Realtor®. 

There are more than 8,000 Realtors® in the Triangle Multiple Listing Service...how do you choose ONE to be your Realtor®?  So how should you choose the person who will assist you every step of the way in buying or selling your home?  How should you decide who can best serve your real estate needs? 

You should choose your Realtor® based on the fact that they share your same values.  You deserve to know that they can offer you the very best for your real estate needs.  You look for that real estate associate who has distinguished themselves in the marketplace, separated themselves from the pack and elevated their performance above all others.  You look for them to provide you with a level of knowledge, experience and service that is unmatched by other Realtors®.  They should be able to share their knowledge about the real estate industry and the local market...for instance, which are the best school systems or which is the best local hospital .  Because a real estate transaction is so multi-faceted, your real estate associate should be able to provide complete, exceptional real estate services - able to recommend everything from a reputable mortgage lender to a trusted title insurance company to a reliable insurance provider.  All to ensure a smooth real estate transaction, saving you time, money and energy.

These reasons and more are why you should partner with a Coldwell Banker Howard Perry and Walston Realtor®.  CBHPW's real estate associates are more than just Realtors® - they are Trusted Advisors who are ready, willing and able to share their knowledge, experience and service to help give you the very best home buying or selling transaction possible.

So what do you think?  What do you consider the most important element in choosing a real estate associate?

Ah… to be young again.  Nearly 15 years ago, I was standing on my new college campus, in the midst of hundreds of freshman clamoring to get into dorm rooms with boxes and furniture.  That first year, I thought it was great to take a shower caddy and flip flops into a bathroom shared by 10 girls and cram my life into one half of a bedroom.   Then, I became a sophomore and oh how I wanted independence- by moving into a house with just 3 other girls (and one bathroom!).   

Dorm rooms can be most affordable for some students and so can sharing rent.  Imagine, though, getting your own place, where your roommates pay rent to cover the mortgage.  Then, at the end of your college years, getting a return on your investment.

Here’s how it could work (your family may be able to help you out on this one):  If you have no established credit, say a credit card or a car loan, your parents or relatives may be in a position  to take out a loan to buy a house near campus . The rent from you and your roommates would ideally pay the mortgage.  If your parents decide to sell at the end of 4 years, they should be able to get their money back and then some.

If you do have some established credit, you may be able to take out an FHA loan on your own, with some gift money from your parents or relatives.  If you are working and filing taxes- you could qualify for the $8000 tax credit before December 1, 2009.   You could take that money and pay your family back for the down payment-which is 3.5% of the purchase price.  Your parents may even decide to let you keep the tax credit for your college fund.   Again, at the end of your college life, you should be able to see a nice return on your investment.  There are some great deals out there right now, especially with such low interest rates.

For those of you planning to become doctors, there are special loans available for housing once you begin your residency.

So what’s the first step?  Call a Realtor and ask them to help you get in touch with a reputable loan officer.  Together , they can help you determine how much home you can afford and find the most suitable place for your needs.  Let your rooming situation work to make money for you or your family- while you are studying hard to get that degree.  You are studying, right?

Carrie Surti
Trusted Advisor/ Real Estate Broker
(919) 389-6676 
SurtiC@hpw.com
www.CarrieSurti.com

Ok 1st Time Homebuyers, you have decided you want to buy a home.  Do you know what your credit score is? Most people know that they have a credit score, that magic number that lenders rely on to determine whether or not to extend credit, but don’t really understand what a credit score is, what factors influence their credit score, or how their credit score is calculated. Here is a basic primer on what credit scoring is, how it works, and some tips on improving your score.

What Is a Credit Score?

In short, credit scoring is a system many lenders use to determine how likely you are to pay back the money they lend to you. Your credit score is a snapshot of your credit risk at a particular point in time. The higher your credit score, the more likely you are to repay your debts on time, and the more likely you are to receive credit on favorable terms.

How Is a Credit Score Calculated?

What Factors Influence the Credit Score?

Your credit score takes all factors into consideration; no one piece of information or one factor will determine your score, although some factors are weighted more heavily than others.

-Payment History – Your payment history determines approximately 35% of your total credit score. This factor looks at whether you pay your bills on time, or late. If they’re late, how late are they? How often do you pay late? How recent are your late payments? How many accounts show no late payments? Have you had accounts turned over to collection or a judgment entered against you? Have you filed for Bankruptcy?

-Amount Owed – How much you currently owe determines approximately 30% of your total credit score. This factor looks at the total amount you owe, and on what types of accounts. How many accounts have balances? How much of the total credit line is owed? How much is owed now in relation to how much you borrowed originally (i.e. for auto loans)?

-Length of Credit History – The length of your credit history determines approximately 15% of your total credit score. In general, a longer credit history will increase your score. This factor also looks at how long you’ve had certain credit accounts, and how long it’s been since you used certain accounts.

-New Credit – Approximately 10% of your credit score is based on how many new accounts you’ve established. This factor looks at how many new accounts you have, how long it’s been since you opened them, how many recent requests for credit you have made, and the length of time since credit report inquiries were made by potential lenders. Rate shopping should not affect this factor because the inquiries will be made for a particular type of credit during a short period of time.

-Overall Credit Mix – Approximately 10% of your credit score is based on the overall mix of credit cares, installment loans, mortgage loans, etc. The more balanced the mix, the more likely this factor is to improve your overall score.

Improving Your Credit Score

-Pay your bills on time.

-Pay down your debt.

-Check your credit report and correct any inaccurate items.

-Limit how frequently you apply for new credit and how much you charge on existing credit.

-Don’t close old accounts – this can shorten the length of your reported credit history.

Jeff Harris
Senior Credit Consultant
TowneBank Mortgage
Jeff.Harris@hpw.com

1st Time Homebuyers?  Looking for more information on buying a home?  Coldwell Banker Howard Perry and Walston associates are committed to being your real estate Trusted Advisors.  Please check out the following information created especially for our 1st Time Homebuyers! Click here.

I was talking on the phone with one of our wonderful real estate associates on Friday.  She was telling me the story of their pre-qualified 1st Time Homebuyer client and how they had just made an offer on a 4th home.  Why make offers on 4 different homes?  The client had a particular price point she could afford and an area she wanted to live in. However, she was pre-qualified for an attractive amount and she didn’t have any out of the ordinary requests.  But she did have competition from other 1st Time Homebuyers.  Hmm.  This was interesting.  The agent (and client) were waiting with baited breath to see if the offer they had just made had been accepted. The agent said “Our client has to get this home, it is made for her.  I could tell it was for her the moment we walked in the door.’

It really got me thinking.  Yes, there are over 150 days left to take advantage of the $8000 1st Time Homebuyer tax credit.  Looking at that number, I can easily see how many 1st Time Homebuyers may think ‘Oh, I have all of the time in the world to start my home search.  I still have time. I don’t need to worry about it this weekend.’  That isn’t the case.

Attention 1st Time Homebuyers, there is no time to waste!  You need to start your home searches TODAY! 

Getting pre-qualified for a home, finding the home of your dreams, making an offer on that home, having that offer accepted, getting an appraisal on that home, getting your mortgage approved and then closing- all takes time!

In today’s market, we are seeing around 40% of transactions coming from 1st Time Homebuyers.  Great news, yes!  However, it does mean there could be more competition for the price points that most 1st Time Homebuyers are interested in.  I think the media has presented a picture that it is a buyer’s market.  Yes, I can see and agree with that in some areas.  However, in the 1st Time Homebuyer market, I believe it is both a buyer AND seller market.  There are more 1st Time Homebuyers competing for great homes in their price point.  Our client above didn’t have any outlandish requests, she was simply competing with other 1st Time Homebuyers for homes.

‘Well, I am waiting for the $15,000 tax credit.’ Ahh, yes.  The discussion of the $15,000 tax credit.  The additional tax credit is only in initial phases of discussion and may or may not be passed by the US Government.  Yes, if the $15,000 tax credit is approved for 2010 that is wonderful news for buyers and the real estate industry.  However, this is your home we are talking about.  When you find the home that is meant to be yours, that feels like you when you walk in the door, that you can see yourself growing in….Do you really want to take a chance that $7,000 more in tax credits MAY be passed?  No.  When it comes to your home, one of the most important investments you will make in your life, a place where you will spend most of the hours in your day and make your memories, trying to time the market is not worth it.  Anyone who tells you it is, is WRONG.

Mortgage rates are still at historic lows.  Are they ebbing and flowing a bit these days, yes.  What will they look like in 2010?  Who knows.  The time is NOW to take advantage of these very attractive mortgage rates.  Mortgage rates these days can be the difference in getting approved for a loan and not.  Do you really want to risk your ability to own a home by waiting?  I wouldn’t.

How did our story end?  Our clients offer was accepted and she signed the papers Friday evening.  She will close soon and move into her dream home, the home that looks like her, feels like her and will be the setting for her many memories to come.

What to take from all of this? 1st Time Homebuyers, NOW is the time!  Don’t wait!  Find your real estate Trusted Advisor , get pre-qualified and start the process.  When the clock strikes midnight on November 30th, do you want to be the one left sitting on the fence?  

If you are looking to buy or sell a home in the Raleigh, Durham, Cary, Wake Forest, Garner, Pittsboro or Chapel Hill-Carrboro area, we are here to help! We are your Triangle Area NC Real Estate experts! Please make sure to take a look at our community films and learn about what the local Triangle area has to offer.