Real Estate Information Archive

As we move forward through all the new lending guidelines, restrictions and conditions, I see evidence regularly that the process of obtaining a home loan keeps getting harder and tighter. 

Evidence...just recently (on behalf of my buyer client) I was asked by a national MTG company to provide documentation of a clean pest inspection letter.  In the past, if a condition of the loan, this document was signed by buyer and produced at closing then sent with all other loan docs by the closing attorney.

And as in the past, underwriting set several conditions that must be met before final approval; adequate home appraisal, work and income verification, verification of assets and SS# etc.

But just recently, in order to approve an FHA loan, this "all clear" pest document must be signed buy both buyer and seller and inspector then, sent in to underwriting.  It is now another condition of "final approval" before the loan comes back out of underwriting and sent to closing attorney. 

Am I complaining...?  No, not really...just pointing out once again that the way we did business in the past is over.  In today's real estate/mortgage world there are more restrictions and tighter guidelines which,  has made it not only harder to obtain a home loan...but also harder to process.  Propper and timely sent documentation then dotting all the I's and crossing all the T's is critical to a seemles transaction.  We need to get used to it!  

If you are looking to buy a home and need the assistance of a professional real estate agent please let me know.  I personally serve the Charlotte Metro market but, also have a large network of experienced Realtors throughout the country that I can refer.  You may contact me directly at www.BuddyFrey.com

Buddy      

A recent article in our local newspaper The Charlotte Observer, came out with some very interesting statistics about our housing prices.  While many areas have been hit with lower prices, some regional pockets have actually gone up in price.  On average though home prices only fell 4% across the area...way better than most thought.  (See 5 year zip code stats below)

                  http://www.charlotteobserver.com/661/story/501993.html

States the Observer, "No one likes a loss, especially in the value of their home. But put your panic on pause.  The average price of homes sold last year in more than three-fourths of the area was at or above prices from 2003 through 2005. That means most people who have been in their houses a few years are likely still sitting on gains.

The Observer reviewed Carolina Multiple Listing Services' sales from 2003 to 2008 and found:  Last year, 26 of 70 area ZIP codes, or more than one-third, posted their highest prices of the six-year period.  Only seven ZIP codes posted declines for the period. In Charlotte, the University area's 28262 and northwest Mecklenburg's 28216, both pocked with foreclosures, had the biggest declines.  The region's biggest gain in the six years came in 28206, which includes part of Charlotte's Arts District, or NoDa, and the fragile Lockwood neighborhood north of uptown.   And, for 2008, Lincoln County's Iron Station led with a 49 percent hike for 28080.  Last year, the top Mecklenburg ZIP code was 28204, which includes the new Metropolitan condos and the historic Elizabeth and Cherry communities."

I believe the true decline in our market began in May of 2008.  Some believe it started as early as July/August of 2007 when Countrywide got in trouble.  I didn't see it here, maybe flat at worst.  But the truth of it is, we're haven't  bottomed hard because we never really exploded to the up side.  And historically, our home inventory is low.  Less people are putting their homes on the market and builders aren't building so that has helped as well. 

Warning!!!  When we turn around here in Charlotte, it will not be gradual.  We're the 7th largest market in the US and and over the years we have actually become a destination.  I predict we will take off big time.  Don't know exactly when but buyers...get in while the getting is good.  Sellers, hang in there. At some point, the ball will be in your court and it might be sooner than you think. 

Buddy