Mortgage With Chad

When You Buy a Home…Who’s Your Friend?

2012-03-09T13:38:00.000-08:00

One of the most misunderstood aspects of buying a home is "does the real estate agent REALLY represent you, the home buyer?"

Yes, you do have the right to ask an agent to solely represent you. Here are some FAQs as to what’s involved and why you should consider it when buying your next home, second home or investment property.

1. What does Buyer Representation mean? The real estate agent represents your interest. They are required to be loyal, accountable and not disclose any information about you that you don’t want the seller or the other real estate agent to know.

2. Should you call the agent who listed the house for sale? You may, but they are representing the seller—not you—and their responsibility is to get the highest price and the most money for the seller. You will also have to sign a piece of paper stating that you are aware that the real estate agent will be representing both of you, and will do their best to be fair and honest.

3. Will you get a better deal if you work with the listing agent? Some people think since the real estate agent would be getting all the commission when working with both the buyer and the seller, that the listing agent will negotiate a better deal. The bottom line is that if the seller doesn’t accept the offer, or if you, the buyer, won’t counter with another price, it’s out of the agent’s control and the sale does not happen.

4. Will they only show you listings that are in the MLS? An agent who represents buyers not only can show you properties listed for sale through the Multiple Listing Service, they can also contact For Sale by Owners. If there is a home you’d like to buy, but it’s not for sale, they can knock on the door for you and ask if they would consider selling it to you.

5. How much does it cost? Over 99% of the time, the seller still pays the real estate commission. There are extremely rare times where the seller may not agree to pay the commission, but you will know ahead of time if there are any issues.

6. Do you need to sign anything? Yes, there is an agreement called the Exclusive Right to Represent the Buyer, and it outlines what my duties are and my responsibility to you. It lets the seller and the real estate agents know that we have an exclusive relationship and if they tell me something about the property, or the seller, or any other information, I have the duty to tell you. You will usually have to sign it for a period of time—but that too is negotiable between you and the agent.

If you are thinking of selling your home, contact me and I’ll recommend several great listing agents. If you are thinking of buying a home, I also know of many great buyers’ agents that I can recommend to you.

Chad L. Huffstetler (NMLS ID 114612), a licensed North Carolina Mortgage Loan Originator. Call me today at (919)500-5274 or visit my website (www.mortgagewithchad.net).

Will interest rates go lower? [a must read]

2011-11-30T12:44:00.000-08:00

Will interest rates go lower?

Wow, what a great question. A factual answer to that great question is..."nobody knows."
The question that our company asked today in it's blog is, "Why would rates go lower?" That may be even a greater question. Can anyone give a solid answer as to why the (already historically low) mortgage rates would go any lower? The only thing our company came up with is the chance of some of the European countries actually defaulting on their debt; which if happens, does not necessarily mean interest rates woud go lower.

On the flip side, our company stated reasons as to why we feel that rates will rise.

Reason #1: Today’s mortgage rates are at or very near the Prime Rate. Now as an investor, would you tie up money by loaning it long term to someone at or near today’s level? We wouldn't!

Reason #2: Lenders are under pressure from Fannie Mae and Freddie Mac to buy back loans that are “defective” or not performing. Additionally, lenders are being sued from every corner.

Reason #3: Yesterday, S&P downgrades the six largest U.S. banks and 15 total banks. Why should that be important to this discussion? Downgrades often raise the cost of borrowing for companies, as investors demand a higher interest rate to compensate them for additional risk. So if it costs the banks more to get money, it is logical to assume it will cost you more to get it as well.

So, you may read this and ask the question, "Why are you telling me this, Chad?"
My answer is, "Because if you are wanting to get in on the lowest rates in history...then you should not waste anymore time chasing dimes and nickels waiting for a lower rate that may never come to save only $15-$20 per month. Lock in now and save dollars before the rates do go up!"

Chad L. Huffstetler (NMLS ID 114612), is a licensed North Carolina Mortgage Loan Originator. Call me today at (919)500-5274 or visit my website (www.mortgagewithchad.net) to fill out a no-obligation quote request. With rates this low, it may just be one of the best returns on your time that you’ve ever made

Legal Shield

2011-10-17T03:58:00.000-07:00

Watch the video about my product, Legal Shield. When you are finished, contact me with your questions.

Bullet-Proof Your Homeowners Insurance Coverage…

2011-10-03T09:29:00.000-07:00

With the recent string of tornadoes, wildfires, and floods, revisiting your homeowner’s insurance policy and speaking with your agent is now more important than ever.

I heard about a person whose home was damaged in a tornado. After calling to ensure everyone was as well as one can be after a tornado, she called her insurance agent, asking if tornadoes were covered on her policy. “Yes, it’s covered under the wind damage section of your policy.” Sadly, he also went on to say that 60% of those sustaining tornado damage were not insured or underinsured.

I also heard a story about a family in California, whose home was burglarized and had volumes of items stolen: electronics, jewelry, clothing, and household items. They were not covered for their full jewelry loss because of the “standard policy limits” that were not enough to cover the loss. Again, sadly, the agent did not ask about the value of the personal property, just assumed the household contents fell under the standard limits.

If your house burns to the ground, you need to not only replace the house and all your things, you’ll need to clean up the site so that new construction can begin. Did your house have any asbestos? If so, you’ll likely need greater policy limits to ensure the Hazmat team is covered in addition to the rest of the clean-up and rebuilding that will take place.

Do you have a large garage, storage shed, fence, or barn? Normal policy limits have “accessory structures” covered at 10% of the dwelling coverage amount. If your home is insured for $350,000, then it’s likely that $35,000 will be the norm for covering the detached garage, shed, fence and/or barn. Is that enough to clean up and replace all of those accessory structures?

Do you have antiques, heirlooms or other unique items? Those may need an appraisal to ensure adequate coverage. My client with an antique watch collection is covered because I said something to his agent.

Keep receipts. Take a video of your home and its contents. Keep all of that in a safe deposit box or in secure off site computer back up. If you’re robbed, the electronics are likely gone. If you have a house fire, the computer files will not be retrievable. Get a back-up for your back up. Please make sure you’re covered and can replace your things, including your computer files.

Please have a conversation with your insurance agent, even about the not so glamorous things (sewer backup and ordinance issues).

No one likes to think about a possible homeowner’s insurance claim. Natural disasters, fires and thefts are major life disrupters. But it sure is easier to handle a claim when you’re properly prepared and know that you’re covered. Please pass along this information to those you love.

Chad L. Huffstetler (NMLS ID 114612), is a licensed North Carolina Mortgage Loan Originator. Call me today at (919)500-5274 or visit my website (www.mortgagewithchad.net) to fill out a no-obligation quote request. With rates this low, it may just be one of the best returns on your time that you’ve ever made

Why Credit Scores are Like Pieces of a Pie

2011-09-20T09:08:00.000-07:00

A Consumer’s credit score is used as a risk factor for vendors to determine the chances of a borrower to receive a 90 days late in the next 24 month. There are over 40 factors/reasons that go into determining a credit score. And, it’s all about the percentages.

Think about a pie. It’s usually cut into 6 or 8 equal pieces, right? Each person’s credit score is divided up like pieces of pie, but the difference is that the pieces are NOT equal.

Credit Score determination are generally broken down in the following percentages:

Payment History – 35%

Recent (how recently did the later payment happen), Frequency and Severity

0-6 month is the most severe; 7-24 month not as sever; over 24 month less sever

Balance – 30%

High Balances on revolving credit is more severe than on installment account. Credit reporting agencies look at cumulative totals. Limits charged up over 75% of the available credit are More Severe. Therefore, it is not always better to go close out account with no balance on them. Spread out balance if possible – small balances on multiple credit cards is better than one maxed out credit card.

Home Equity Lines – Not as volatile as credit cards. They are treated as a revolving line unless the amount is greater than $30,000. When the balance is over $30,000, equity lines are treated as installment debt.

Special Note on American Express: American Express will report previous month balance if no current balance is show. Always check American Express reporting because it can be reported as being “Maxed Out”.

Credit History – 15%

A Trade line between 3-5 is ideal. The longer the credit history, the lower the risk.

Type of Credit – 10%

The number of trade lines is counted for the present and the past.

Special Note: Finance companies – like furniture and appliances store “buy now and pay later” credit can have one of the most adverse effects on credit. They are considered higher risk. Having too many finance company accounts can hurt the credit score.

Inquiries – 10%

Each inquiry can cost 5-15 points off your credit score. 5-7 inquires per 12 month period should be the limit. There are limited numbers of inquiry dings per year the credit reporting bureaus will give you. It is not infinite.

· Finance company inquires have the most adverse effect

· Promotional inquires – where companies look at your credit to pre-approve you for credit – does not affect the score unless you accept the offer.

· Multiple-Mortgage related inquires – if done in the 14 day period will not have an adverse effect.

Public Records: Bankruptcy and any public records can put you in a different risk group.

Bankruptcy: The credit bureaus look at recently and percentage of trade lines included in bankruptcy. What has the performance been since the bankruptcy? Any lates can be looked at as a risk for repeat of the pattern.

Collections: It is not necessarily good to pay off collections before applying for a home loan. Paid or unpaid is still a negative. Paying shows a recently and could lower the score instead of improving it. The best option is to get a letter from the collection agency (not the original creditor) explaining that it was reported in error.

Instead of filing Bankruptcy, some consumer goes through a Consumer Credit Counseling Service or Debt Reduction Service to reduce the outstanding balance and debt on each account and then combine it all into one monthly payment. The conforming mortgage lenders often consider this just like they would a Chapter 13 Bankruptcy. So be careful!

Divorce Settlements: They don’t automatically show up to the credit report. Consumers will still appear to owe that debt even if it was assigned by a judge to the other spouse. Consumers do have the rights now to provide a letter of explanation to the bureaus.

For additional information on credit and weather your credit will qualify you for a home loan, please call me at (919) 500-5274.

Chad L. Huffstetler (NMLS ID 114612), am a licensed North Carolina Mortgage Loan Originator. Call me today at (919)500-5274 or visit my website (www.mortgagewithchad.net) to fill out a no-obligation quote request. With rates this low, it may just be one of the best returns on your time that you’ve ever made.

No More Recession

2011-08-29T15:57:00.000-07:00

On Friday of last week, Fed Chairman Bernanke commented that our economy will not fall into another recession. That news has moved the Dow up 388 points in the last two sessions. Next week, the President is scheduled to make another one of his key note speeches announcing ... blah blah blah!

So, what does this mean for you, the mortgage consumer? Well, interest rates increased today as the stock market rallied. And since the equity market has declined - the investors/traders are stepping up. The more they step up, the more volatile the mortgage rates will be and ultimately could rise even higher.

As I mentioned in my last blog post...it could really benefit you to go ahead and take advantage of the historically LOW interest rates right now. I know some of you just refinanced within the past few years and feel that it is not to your benefit to do it again. However, it really depends on your future plans with your home - like: How long do you plan to keep your home?

I can't tell you how important your financial portfolio is to your future. Only you can determine that value. However, I can tell you that if it makes sense to save some dollars on a monthly (even yearly) basis by taking advantage of these rates...then you need to contact me so we can go over you scenario.

Hey, it doesn't cost you a red cent to explore your options! Do not wait too long...contact me today!

I, Chad L. Huffstetler (NMLS ID 114612), am a licensed North Carolina Mortgage Loan Originator and I would be happy to assist you in determining if a refinance could save you enough to make it worth your time. I have access to the lowest-priced lenders in the nation, and offer quick closings and great service. Call me today at (919)500-5274 or visit my website (www.mortgagewithchad.net) to fill out a no-obligation quote request. With rates this low, it may just be one of the best returns on your time that you’ve ever made.

Rate market still 'bullish'

2011-08-23T17:52:00.000-07:00

This afternoon's rate MBS commentary states, "The rate markets still hold bullish technicals, however in the near term we are reluctant to assume any risk until the 10yr makes a move lower than 2.00% just 14 basis points lower. If that doesn't begin to happen on Friday there is a better likelihood rates will increase a little, taking the 10 yr to 2.25% and mortgage rates up about 10 basis points from current levels."

So, what does this mean for you and yor interest rate?

Well, if you are trying to determine when to 'pull the trigger' on refinance rate or wait for a potential lower rate, consider this: If refinancing puts you in a better position financially, saving very substantial amounts of money over the life of the loan…why on earth would you not move forward and gamble that you’ll lose it all? To be honest, most people are risking those huge savings we are talking about hoping the rate may go down another eighth of a percent, or the points may go lower to give them lower closing costs or a slightly higher Lender Credit to pay more of their closing costs. They are risking tens, even hundreds, of thousands of dollars in guaranteed interest savings to possibly save a few hundred in closing costs. They are risking dropping their mortgage payment possibly several hundred dollars per month…guaranteed, on the chance that rates will drop an eighth of a percent and save them another $10 or $20 per month.

With the market as uncertain as it is, if it refinancing saves you money (dollars) right now, don't lose those dollars chasing nickels and dimes!

If the current rate betters your situation, then it is time to lock that interest rate NOW!

I, Chad L. Huffstetler (NMLS ID 114612), am a licensed North Carolina Mortgage Loan Originator and I would be happy to assist you in determining if a refinance could save you enough to make it worth your time. I has access to the lowest-priced lenders in the nation, and offer quick closings and great service. Call me today at (919)500-5274 or visit my website (www.mortgagewithchad.net) to fill out a no-obligation quote request. With rates this low, it may just be one of the best returns on your time that you’ve ever made.