10 Do's & Don'ts During Your Loan Process

When you are ready to buy your home in Pinehurst or Southern Pines the first thing you will need to do is become pre qualified for your mortgage loan.  In order to have your home loan go smoothly we have 10 recommended Do's and Don'ts to follow.

1. Don't apply for new credit of ANY kind!
2. Don't close credit card accounts!
3. Don't max out or over-charge existing credit cards.
4. Don't consolidate debt to one or two cards!
5. Don't change or quit your current job!
6. Don't make any large deposits into your checking or savings account!
7. Don't make any large purchases!
8. Don't co-sign for any loans!
9. Do stay current on existing accounts!
10. Do hire a great loan officer!

Towering Pines Real Estate and Movement Mortgage are a great team!

Can I Afford to Buy a Home? Check Out This Simple Guide

Taking that first step to home ownership can be stressful.  Eliminate that stress with this simple guide

Step 1:  Get Pre-Approved

The only way to truly know how much home you can afford is to ask a lender.  Getting pre-approved lets you know how much you can afford before shopping for your home.

What to Know and Where to Find It

• Income:  Stable income assures a lender you can make your monthly mortgage payment.  
• Debt:  Add up auto payments, credit card payments, student loans, alimony, child support, and other.
• Cash:  Total assets, amount in checking and savings accounts, and other investments.

Step 2:  Determine Monthly Mortgage Payment Including Escrow

Escrow is a third party account used to retain funds including the property owner's real estate taxes and hazard insurance premiums.

Step 3:  Understand Bills Associated with Home Ownership

Estimate that it will cost about one percent of the purchase price per year to maintain your home.  For a $200,000 home, you should budget approximately $2,000 per year or approximately $170 per month for maintenance.  Condominiums and co-ops will have regular maintenance fees.  You will also have utilities, gas, electric, water, sewage, cable, telephone, insurance, property tax, etc.

Step 4:  Compare the Total Costs to Your Monthly Salary

Subtract the total in Step 3 from your monthly gross income.

Step 5:  Test Those Numbers for Six Months

• Set up a new bank account
• Subtract your current monthly rent from your Step 2 total.
• Deposit the difference in these numbers into the new bank account on the first day of each month.
• After six months, determine how simple or straining the process turned out to be.

Step 6:  Establish Future Priorities and Plan for the Unexpected

• What are your needs for your new home - furniture, lawn equipment, barbecue grill?
• Is a new car in your near future
• Do you plan to have children
• How long can you survive if you lost your job?

This guide has been provided by Movement Mortgage and Jason Brooks. When you are ready to purchase be sure to contact Jason at 910-920-SAVE (7283) to finance your home.  Towering Pines Real Estate will be happy to help you search for the perfect home!  Call Allan at 910-528-1181 or Terry at 910-528-2078.

5 Reasons it is Better to Buy than Rent

5 Reasons it is Better to Buy Than Rent

1. Equity.  You can't build equity in a rental property, but you can by owning it!
2. Tax Deduction.  Your rent payment is not tax deductible.  Contact your tax advisor to discuss deducting the interest portion of your mortgage payment
3. Fixed Payment.  Do you find your rent increases each time your lease is renewed?  With a fixed rate mortgage, the principle & interest payments never go up.
4. Pride.  An apartment can feel like only a place to stay, but a benefit of owning your home is the pride of your own home!
5. Additional Tax Benefits.  As part of owning a home versus renting, you may be eligible for tax credits for improvements and other tax incentives.

Stop Paying Your Landlord's Mortgage!  Build Your Equity! 

With rates still at incredible lows it is time to start building equity in your own home.  Many renters can afford to buy a home but don’t realize it.

Are you thinking that you need a lot of cash to buy a home?  That your monthly payment would be more than you can afford? 

In our area we are still in a buyer’s market.  This market has given first time home buyers much more buying power.

There are many mortgage options available today.  If you are ready to open the door to home ownershipo call us and let us put you in touch with our preferred lender, Jason Brooks of Movement Mortgage.  Towering Pines Real Estate can help you start looking for your home today!