Tag Archives: fha loans

What Does My Credit Score Even Mean?

What does my credit score even mean?

As we all know, credit can either help us turn our dreams into a reality or it can be the one road block that keeps getting in the way. What does my credit score even mean?

What is credit?

The credit scoring system was originally designed in the 1950’s to help lenders determine how well consumers could pay back borrowed money. While there have been many updates to how this system is used, the components of a credit score consist of these major factors:

  • Payment History – 35% Impact
  • Outstanding Credit Card Balances – 30% Impact
  • Credit History – 15% Impact
  • Inquiries or New Credit – 10% Impact
  • Types of Credit – 10% Impact

 

What can impact my credit score?

Paying off debts on time has the greatest positive impact on your credit score. Late payments, judgments and charge-offs all have a negative impact. Keeping lower balances on the open credit accounts you have is a sure way to keep that score going up! The longer you have positive credit history, the better. However, multiple credit inquiries in a short period of time, such as applying for multiple credit cards, can have a negative influence on your score. The type of credit you have is also a factor. Having a mix of credit, such as an auto loan and a credit card, is more positive than a combination of debt from multiple credit cards.

What if I don’t have any or enough credit?

There are simple ways to begin building credit history. Start establishing credit history by opening  a small line of credit with your bank or credit union and begin making minor purchases that can be easily paid off. Your bank may offer a secured credit card if this is your first time applying for credit. This type of card works like a debit card and will require deposited funds for purchases; just be sure your history will be reported to all three credit bureaus.

What if I have less than perfect credit when applying to purchase a home?

Knowing what is on your credit report is the first step. Obtaining a credit report will show which areas are helping your score and which areas need to be worked on. When applying for a mortgage, your loan officer will be able to see if there are any areas that need work to help you get on the right track for a future purchase.

Want to find out where you stand? Let’s get the conversation started.

https://alphamortgageapplication.com/

 

To keep up with all things mortgage, housing, and real estate, be sure to subscribe to our blog! Here at Alpha Mortgage, we’re proud to be North Carolina’s #1 mortgage company. Contact us today to make owning your dream home a reality.

How to sell your home fast!

In today’s market, homes are selling faster than ever. Have your sights set on your next dream home and need to get your current home ready to sell? Let’s take a look at a few ways to help you get your house to SOLD!

We can’t stress enough how important it is to get connected with an experienced real estate agent right away. Working with a quality real estate agent will not only give you the advantage of having their experience on your side but they can also help you get more from the sale of your current home, giving you a healthier budget for furnishing your beautiful new home!

Now, how do we get this place sold? One thing your real estate agent may share with you upfront is that the home needs to be priced appropriately. Okay, we can get a bit sentimental when it comes to putting a price on the house we made a home. After all, how can you put a price on the whole summer it took to get those flowers to grow in the back yard or the upgrades you paid an arm and a leg for to make the kitchen your morning oasis? While those items need to be accounted for to determine the home’s total value, the price that is set needs to be realistic for where your home is located and what it has to offer.

Vamp up your curb appeal:

This will be a potential buyer’s first impression of your home. The moment they pull into the driveway, buyers will make a snap decision before they even step out of the car. Bringing life to your home’s exterior is easier than you think.

  • Give a fresh coat of paint to old front and garage doors.
  • Clean the siding and clear out cobwebs and debris from the entryway.
  • Revamp landscaping by adding potted plants to the front porch and walkway.
  • Trim back overhanging tree limbs and lay down fresh mulch.
  • Lastly, don’t forget the welcome mat!

Create an inviting atmosphere:

Now that you have ensured potential buyers want to enter your home by dazzling them with newly enhanced curb appeal, it’s time to awaken their senses. When potential buyers are walking through your home, you want their first impression to be a great one! There is nothing that turns people away like a stinky sink or foul-smelling carpet. While getting the carpets cleaned may be an obvious check off the to-do list, adding simple scents to the atmosphere have been shown to help sell your home!

  • vanilla
  • orange
  • lavender
  • fresh baked cookies

Yes, fresh baked cookies! Popping a couple rounds of cookie dough in the oven when you have a showing will help buyers feel warm and invited into your space and make them want to stay.

Declutter, depersonalize and brighten up the place:

When families are walking through your home, they want to feel at home themselves. Clearing all the clutter and stowing all personal items will help open up the space and let their imagination run freely. Removing excess items will allow potential buyers to visualize the space with their own furniture. Painting the walls a neutral color and opening the blinds to brighten up the place will insure your home is looking its best.

The forgotten details:

Taking the time to check off a few last items on the list will ensure your home is walk-through ready.

  • Park vehicles down the street to allow for easy access
  • Take the pups for a walk or arrange for a place for pets to stay while your home is being shown by a real estate agent. An anxious pet can cause tension during a walk-through and deter potential buyers.
  • Leave a detailed list on the kitchen countertop describing the features of your home and neighborhood. Buyers want to know as much as possible, such as history of the home, upgraded features, school districts and amenities that set your neighborhood apart. Do you have great neighbors? Tell them about it! After all, who could know better than you?

 

What Makes a Good Loan Officer?

Wilmington, NC Loans

With 2015 upon us and the economy looking up, many people are looking towards purchasing a new home this year. It is no secret that one of the most important steps in property purchase involves communication and collaboration with loan officers. Loan officers, or Mortgage Originators, evaluate, authorize, or recommend approval of loan applications for people and businesses. According to the Bureau of Labor Statistics, they are normally responsible for contacting companies inquiring about loan needs, meeting with loan applicants to gather personal information, obtaining and verifying financial information, explaining loan terms and types, analyzing and evaluating applicant’s finances, and eventually approving or denying loan applications. So what should you look for in a loan officer to make your home-buying experience as seamless and stress-free as possible?

A good loan officer holds many great qualities including time-management skills, problem-solving skills, and responsiveness, but 5 traits that an outstanding Loan Officer must have are listed below:
• They are transparent with customers- a great loan officer is always in line with all national loan regulations, but arguably even more importantly, they are open and forthcoming with customers and realtors about important information that can make or break a loan in a timely matter. They never over-promise or under-deliver.
• They are passionate about what they do- one thing that sets apart excellent loan officers from average is their love for what they do. It is apparent when a loan officer hates what they are doing, but through positive energy and attentiveness to customer needs, passion from a loan officer shines.
• They measure all of their data and information- great loan officers understand that nothing can be improved if it is not first measured. Best performers know exact numbers of leads, credit report pulls, contracts, and closings they have had in specific time periods because they understand how imperative numbers are both to potential borrowers and to their own success.
• They are accountable– They work for companies that hold employees to high work standards and ethical standards because they want to push themselves to their highest potential as a loan officer. They appreciate accountability because it shows borrowers and real estate agents that they can be relied on for closings.
• They are connected– The best loan officers not only know basic real estate principles, but they have rich professional connections with local real estate agents. Great loan officers have a deep base of knowledge they use to inform real estate agents about the closing process for clients, and maintain a positive communication process between the parties.
Looking for a Loan Officer on the North Carolina Coast? Alpha Mortgage has their own in-house team of specially trained Loan Officers that meet all of these qualifications! Check them out and contact one today to get the ball rolling on the purchase of your dream home!

Jacksonville, NC Loan Officers

New Bern, NC Loan Officers

Wilmington, NC Loan Officers

Mortgage Market Update

The Labor Department reported this morning that employers added just 113,000 jobs in January, which was below the 175,000 expected, but up from the paltry 75,000 created in December. A freeze in hiring in the health care sector is one of the factors to the lower numbers. The Unemployment Rate fell to 6.6%, the lowest level since October 2008, but that can be due in part to people falling out of the work force than finding jobs.

Filling up at the pumps will begin to be more expensive as spring nears due to more drivers being on the road along with refineries shutting down for winter maintenance, which reduces supplies. The national average price for a regular gallon of gasoline is at $3.26. For 2014, AAA predicts that the nationwide average price will peak between $3.55 and $3.75 per gallon with the average price around $3.49.
The Census Bureau reports that the share of Americans who own their own homes was 65.2% in the fourth quarter of 2013, down from 65.4% in the previous quarter. Higher borrowing costs coupled with tight credit were the two factors behind the decline. The rate peaked at 69.2% in June of 2004.

Mortgage Market Update

Consumers opened their wallets in December and spent on holiday shopping across the nation. Personal Spending rose by 0.4% last month, above the 0.2% expected. However, Personal Incomes were unchanged and below the 0.2% expected. Digging into the report it revealed that consumer inflation pressures were almost non-existent.

Manufacturing activity in the Chicago region declined in January from December. The Chicago PMI fell to 59.6 from 60.8 and was the lowest reading since November. Within the report it showed that the employment component fell, while the prices paid number rose. In addition, Consumer Sentiment fell to 81.2 in late January and down from the 82.5 registered in December.

Today marks the last day in office for Federal Reserve Chairman Ben Bernanke as Janet Yellen takes over the reigns as Fed Chief on Monday. Mr. Bernanke steered the US financial system through one of its worst periods in history after the financial and housing markets blew up in 2008. Ms. Yellen becomes the first woman to head the central bank in its 100-year history.

FHA Loans explained

Who is the FHA?

FHA stands for the Federal Housing Administration which is part of the U.S. Department of Housing and Urban Development.  The FHA was created as part of the National Housing Act of 1934.  The FHA insures loans made by lending organizations such as banks and private lenders for the purpose of building or buying a home.  It also works to improve housing standards and conditions and to help keep the mortgage market stabilized.  Home buyers all throughout North Carolina have been utilizing FHA loans for decades.

 

What is an FHA Loan?

This is a loan provided by an FHA improved lender such as Alpha Mortgage, that is secured by Federal Housing Administration mortgage insurance.  This program is a way that our government is helping citizens who are in a lower income bracket and might not otherwise be able to obtain a mortgage loan.

 

Do I qualify for an FHA Loan?

At Alpha Mortgage we are going to work closely with you to find out which mortgage program is best for you.  If that happens to be an FHA loan then we will help you through the prequalification process.  This will include providing your employers name and address and demonstrating that you have held a steady job for two years or more with the same company or employer without a decrease in income.  You will also need to provide the amount of your Gross Monthly Salary and if you have held multiple jobs over this period, provide W2’s for all of them.  If there are any foreclosures with your name attached, at least three years need to have passed (this applies for bankruptcy as well).   You will also need to provide the addresses of where you have lived in the past two years.

 

If you cannot locate a copy of your W2’s, do not hesitate to contact your employer for assistance.  You can also order a replacement copy from the IRS’ website.  If this all seems overwhelming, that is what your Alpha Mortgage loan officer is here for.  They are  your trusted source you can turn to who will guide you through the process.  With Alpha Mortgage you are never alone.

 

So What Do I Do Now?

Before you gather all the needed information to prequalify for an FHA loan, give your local Alpha Mortgage branch a call.  We will set up a one-to-one for you with one of our loan officers, at your convenience, and then we can learn about your goals for buying a home or refinancing and begin looking at the different options you have.  It is that easy and we plan on keeping the rest of the process as simple as possible.  We have offices  in Wilmington 910-256-8999, Winston-Salem 336-760-3013, Fayetteville 910-484-7272, Asheville 828-552-0330, Jacksonville 910-347-7283, New Bern 252-634-3000, & Jacksonville 910-347-7283.  We look forward to hearing from you!