Charlotte NC Real Estate and Relocation Update May 2010

Rich Ferretti is a Charlotte NC, Matthews NC, and Mint Hill NC real estate and relocation specialist.

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Mint Hill NC--Relocation/Real Estate Investors

Mint Hill North Carolina Home Search

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Charlotte, North Carolina Real Estate and Homes For Sale

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Buying or Renting---what to do

The cost difference between buying and renting is as narrow as it has been since 1993, according to a study on homeownership by Marcus & Millichap Real Estate Investment Services for the Associated Press.
      The study examined rent and home prices in 45 metropolitan areas and concluded that gap between a payment on a median-priced home and median rent on a similar property is on average only $256.
      Marcus & Millichap calculated the number using median home prices for the last three months of 2009, assuming a 10 percent down payment on a 30-year fixed-rate loan at 5.07 percent.
      It factored in mortgage insurance, but didn't include either repair costs or tax benefits.

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Using your Tax Return---brought to you by Rich Ferretti, your Charlotte NC, Mint Hill NC and Matthews NC Real Estate Professional.

Use Your Tax
Return for Good

Tax season can be a challenging time of the year. Some people wait until the last minute to file their taxes, while others file and received their funds before the mid April deadline. If if you are one of the lucky ones who get a tax return, what will you do with those long awaited greenbacks? A popular choice amongst consumers is to pay off credit card debt; another is buying something extravagant. But why not consider how your tax return can help maximize your mortgage product and your financial situation in the long run?
     Consider refinancing if you have an ARM or a high interest rate loan. Refinancing into a fixed rate and/or a lower interest rate can save you money in the long run. Why not do it now when rates are at all time lows? You can use your tax return for closing costs.
     If you are happy with your mortgage product and rate, why not use your tax return to help add the gourmet kitchen you've always wanted? Not only can you have that extra bedroom or outdoor kitchen you've always wanted, but you may also be increasing the value of your home and get more money when you are ready to sell. Let your tax return help increase the value of your home by using it to help fund a rehab loan.
     Perhaps you want to upgrade to a new home for your growing family. Your tax return can come in handy with closing costs.

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Pre-Qualifying for a Mortgage---Charlotte NC, Matthews NC and Mint Hill NC relocation specialist.

Pre-Qualifying for a Mortgage

One of the first steps to take as a potential home buyer is to get pre-qualified for a loan. This step helps both you and your lender learn just how much home you can afford. And you should begin this process before you even start looking for a home.

According to the Federal Housing Administration (FHA), their pre-qualification essentials include:

• Having a steady employment history, at least two years with the same employer.
• Consistent or increasing income over the past two years.
• Credit report should be in good standing with less than two thirty day late payments in the past two years.
• Any bankruptcy on record must be at least two years old with good credit for the two consecutive years.
• Any foreclosure must be at least three years old with good credit for the past three years.
• Mortgage payment qualified for must be approximately 30 percent of your total monthly gross income.

Other lenders' ideas regarding pre-qualification are all similar to those outlined above. A mortgage lender will look at your credit report, earnings, debts, and savings in order to see how much home you really can afford.

Why is this important? In recent years there has been a “mortgage crisis,” where the industry was rampant with fraud and with loans that put homeowners into situations they could not afford. As payments rose, homeowners found themselves unable to meet their monthly obligations. According to Realtytrac.com and their U.S. Foreclosure Market Report, in January 2010, one in every 409 households in the country had received a foreclosure filing.

Since pre-qualification for a home loan typically costs you nothing, but gives you both a goal of what homes are in your affordability range, as well as how much money you should look to have saved for a downpayment, you can hardly wait to take this step.

What if the home you want is out of your reach? Experts recommend reducing your debt and saving up a larger amount for your down payment. Let's say your dream home is $225,000, but you only qualify for a $180,000 loan. If you have a downpayment of $45,000, then you are ready to make a move!

During the pre-qualification process, you will be expected to provide the following information:

• your gross monthly income
• your total monthly payments (car payments, credit cards minimums, child support payments, student loan payments, any other monthly debts)

The lender will be looking to see that your debt to income is below about 40 percent, and the lower the better. So, if you are looking to buy in the near future, be sure to talk to your lender soon!
Written by Carla L. Davis

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Eco-Friendly Home? Brought to you by Rich Ferretti, your Charlotte NC, Mint Hill NC and Matthews NC real estate professional.

Have an Eco-Friendly Home? Make Sure Buyers Know It

In tight real estate markets one sure thing is that sellers have to highlight the finest qualities of their homes. Yet, sometimes the very benefits buyers might be interested in are overlooked.

Sometimes sellers forget to mention important upgrades and other times the listing services used make it difficult for buyers to search for green properties. While statistics show that buyers won't necessarily chose an eco-friendly home over a standard one simply because it's green, they can be influenced to purchase the former if the home will save them money. There are a few areas of a home that can really help save money, but the sources of the savings are hidden in the walls and roof. "Insulation is relatively inexpensive for the return on investment. You will save the most money by doing a lot of insulation in your house," says Steven Mark Design Consultant at Marrokal Design & Remodeling.

The San Diego-based remodeling company uses green materials like recycled blue jeans that are turned into insulation as well as special roofing to help lower the energy costs by allowing heating and air conditioning systems to work less to keep the home comfortable.

"On our roof sheathing we're using a special plywood that has a little layer of metal in it that reflects the UV rays before they go into your attic," says Mark. He says by using this special radiant barrier plywood the attic will be considerably cooler. "The attic is going to be 20 or 30 degrees cooler in the summertime which then means the insulation and air conditioner and everything else you need to get your living space to a comfortable temperature is now reduced," says Mark.

Of course, buyers should be told about all those energy-saving appliances that you might have installed over the years. For instance, say there are two decades-old homes on the market, but the first houses old appliances and the second features new energy-saving appliances. The upgrades in the second home are a distinct advantage that should be made very clear to buyers. While this seems obvious, sometimes sellers neglect to mention all the perks.

Remember, the things that aren't always visible can save a surprising amount. Tankless water heaters, for example, are becoming more in demand. That's probably because you can have as much as 30 percent savings of a normal utility bill using a tankless water heater according to Dennis Hargraves of El Cajon Heating & Plumbing Supply. Additionally, consumers can get big rebates.

"Tankless water heaters … they can get up to 60 percent of their installation and cost of the heater it could be up to $1,500 in rebates or tax credits," says Hargraves.

Special water-saving shower fixtures and low-flush toilets can also be enticing to buyers. If you haven't already installed them, consider replacing an old toilet with a more efficient one. Also, don't worry about the low-flush not being effective, Hargraves says the functionality has greatly improved; no need for double flushing. Plus, there's incentive to install them.

"There are vouchers available so a customer can receive up to $50 to $100 per toilet by going to the 1.28 flushes versus the others," says Hargraves.

It's a good idea to keep a three-ring binder to help you remember all the upgrades and eco-friendly additions when it comes time to sell your home. Be sure to include the sales receipts, product warranties, operating instructions, and any other pertinent notes into the binder. Don't forget to review the material in your binder so that you're prepared to highlight your green improvements when you meet with your real estate agent.
Written by Phoebe Chongchua

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Wondering What Your Home Is Worth? -- Let me show you.

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