Charlotte Real Estate - Mortgage Options

Many people want to relocate to Charlotte NC Real Estate but are concerned about both property values and the ability to get a mortgage. Inquiring into a mortgage can create stress because no one likes rejection. I can help you overcome these obstacles. I work with several lenders and mortgage brokers and can explain mortgages in layman terms.

What are my Charlotte Mortgage options? First, the "no money down" or 80/20 mortgages are gone. These loan products have disappeared due to the national housing market decline and high foreclosures on sub prime loans. Here is why.

Let's say your home declined 5% in value over the past year. Now you are behind on payments and going into foreclosure. If you are going into foreclosure is is safe to say that you are at least 6 months behind in payments of $6,000 (on a home of about $150,000. Now the lender hires a local attorney for the foreclosure process.

After the foreclosure the lender pays any tax liens or back home owners dues and the marketing expenses. After the home is actually sold the money is dispersed. The 2nd mortgage (the 20% of the 80/20) gets nothing because over 20% of the value was lost due to the expenses. Too many of these occurred so investors will no longer "invest" (or donate) there hard earned cash for 2nd mortgages. Ultimately they were a losing bet.

Here we are today. If you are going to purchase a Charlotte home is is safe to say you either get a FHA loan with 3 1/2% down payment or a conventional loan with at least 10% down. The FHA is a Government backed loan and there is a lot of additional Government red tape in securing this loan. As you are likely to be aware, any time the Government is involved there will be additional hoops to jump through. The FHA loans are more costly but it employs more people (also known as job creation or wealth redistribution).

The conventional loans are still possible but you will need 10% down payment, a credit score of 700+ and a debt to equity ratio of less than 35%. This will be a challenge for many "want to be" home owners but good things come to those who wait. In the long term this will actually help strengthen the over housing market and Homes in Charlotte NC. Visit Charlotte Realty and Rick Waite for additional insights into the greater Charlotte Real Estate market.

Charlotte NC Homes For Sale and Mortgages

Many people listen to the media and feel that no one can receive a home mortgage. Please allow your intelligence to be your guide. The media is a medium for distortion and sensationalism.

Contact a mortgage professional and pursue your options. Yes, high risk loans were a foolish creation dictated by our Government. This created a national financial crisis. Mortgage companies, banks and lenders are now making loans that are minimal risk. In reality this is what banks have done since banks began providing mortgages.

Banks are not mints. They are guardians of our combined savings and are supposed to be intelligent stewards of our life savings. They assess risk and intelligently lend out our money and provide us a modest return. They are merely the middle man managing our money. The Government, via the Community Reinvestment Act told the banks to ignore their stewardship responsibilities and that the Federal Government would guarantee the high risk loans. The legislators foolishly are not intelligent enough to understand financial risk and thus the Government created the crisis.

Banks are still making loans but they are requiring sound financial fundamentals. This is the way it is supposed to be. Banks understand that too much debt will ultimately lead to a personal financial crisis.

I have worked with several lenders lately and they are in fact still making loans. Call me today at 704.770.6559 and I can help you contact lenders that are reputable and will help you all along the way to purchasing your new home.

Visit Charlotte NC Homes For Sale Charlotte Real Estate for additional information of our great real estate opportunities.