Network Wilmington Real Estate

Borrowers are NOT Tied to a Single Lender

admin — Tue, 21 May 2013 14:40:26 +0000

Attention Homebuyers: Learn About Mortgages to save you From a Costly Mistake
Multiple news outlets have reported that the real estate market, as a whole, is steadily improving month to month. This indicates that more people are looking to buy that quaint first home and continue their journey towards the American dream. For the first time buyer, obtaining a home can be exhilarating as well as nerve-racking and even confusing. Here are some critical pieces of information that every prospective buyer needs to be familiar with before signing a mortgage.
Down Payment
Buying an automobile usually will require some form of a down payment. The same can be said for buying a home, MOST of the time. Various types of loans will ask the buyer to pay up front between 3% and 20% of the home’s value as a down payment. However, there are a few exceptions.
For instance, a VA mortgage and a USDA mortgage do not require any down payment. The FHA loan requires a down payment, but the money can come from a relative in the form of a gift. Restrictions apply to each type of loan, but these three types of mortgages are quite popular and get approved on an almost daily basis.
Making Sense of the APR
The Annual Percentage Rate (APR) is a simplified way to compare multiple loan offers. In a nutshell, the APR illustrates the costs associated with the loan as a percentage. There are common costs found with most mortgage loans such as an appraisal, title insurance and recording fees. These costs are factored in to the APR.
But each lender has some flexibility in other costs charged to the loan along with various fees. And each lender has established working relations with appraisers and title insurance attorneys in order to offer their “own” costs. Thus, comparing two loans requires a bit of work.
Using the APR allows the borrower to look at two or more loan scenarios and determine what is best for their situation.
Borrowers are NOT Tied to a Single Lender
Some potential home buyers, especially those searching for their first home, feel they must use the lender that first offered a pre-approval. Unless the buyer has signed some type of agreement with the lender (which is a bad idea) there is no legal statute requiring the borrower to use any particular lender.
Buyers are free to call multiple lenders and get various offers for financing. However, it is fair to note that each time a lender requests a credit report on the borrower that the score will be slightly affected.
Please keep in mind that this is not advocating for all potential home buyers to become an expert in mortgage terms. Owning a car does not require a person to become a certified mechanic. However, there are basic things a person should know about a vehicle such as changing out the oil regularly, rotating the tires and using premium fuel. In the same way, people should become familiar with basic mortgage information so that they are better prepared for the process and can make a proper decision. Call Network Real Estate today for all your Wilmington NC real estate needs. Our agents can help you with real estate in Carolina Beach , Kure Beach , Wrightsville Beach or the Wilmington NC area. Visit our easy to use website at www.NetworkWilmington.com

Foreclosure Filings Fall 25% in February

admin — Thu, 21 Mar 2013 13:29:19 +0000

RealtyTrac counted a total of 154,281 U.S. properties with foreclosure filings — default notices, scheduled auctions, or bank repossessions — last month. The number is up 2 percent from January, but is down a full 25 percent from February 2012. The number of American homes entering the foreclosure pipeline also declined 25 percent from a year earlier, and bank repossessions tumbled 29 percent year-over-year to land at their lowest volume since September 2007. “At a high level the U.S. foreclosure inferno has been effectively contained and should be reduced to a slow burn in the next two years,” RealtyTrac Vice President Daren Blomquist says. “But dangerous foreclosure flare-ups are still popping up in states where foreclosures have been delayed by a lengthy court process or by new legislation making it more difficult to foreclose outside of the court system.” The highest rates of foreclosure were documented in Florida, Nevada, and Illinois. Source: “U.S. Foreclosure Filings Fall 25 Percent in February,” Fox Business (March 14, 2013)

Call Network Real Estate today for all your Wilmington NC real estate needs. Our agents can help you with real estate in Carolina Beach , Kure Beach , Wrightsville Beach or the Wilmington NC area. Visit our easy to use website at www.NetworkWilmington.com

McCrory signs bill eliminating tax credit

admin — Wed, 13 Mar 2013 20:31:44 +0000

Gov. Pat McCrory signed legislation on Wednesday that repeals the state’s earned income tax credit (EITC) after December of 2013. The measure also cuts the credit from the current 5 percent to 4.5 percent. A coalition of groups, including Action NC, the United Way Inc. and the North Carolina Justice Center had spoken out against the action. In 2011, roughly 900,000 low- to moderate-income North Carolina taxpayers took the credit, receiving refunds of about $105 million. First enacted in 2007, the state EITC became available to any taxpayers who also qualified for the federal EITC. If a working taxpayer qualified for a $100 credit under the federal provision, for example, the state EITC, acting as a supplement, took the amount to $105. Discussions to cut and repeal the state credit began in the General Assembly before the arrival of the McCrory administration. The EITC reduction and sunset were part of a larger tax bill aligning North Carolina’s tax code with federal regulations. Source:Lee WeisbeckerStaff Writer-Triangle Business Journal

New single family lot count growing in NHC

admin — Tue, 05 Mar 2013 20:11:13 +0000

As greater Wilmington moves closer to having a six-month supply of existing townhomes, condominium and single-family homes, some area builders are responding to the demand by launching new projects on existing lots in a number of communities across New Hanover County. From Monkey Junction to Myrtle Grove and from Landfall to Porters Neck, new single-family construction appears to be on the rebound. A report on construction permits released earlier this week by the New Hanover County Development Services Department showed a 46 percent increase in permitting activity last month compared with January 2012. In all, 68 new single-family permits were issued last month – up from 37 new single-family permits issued in January 2012. For the fiscal year to date, which started July 1, developers have received permits for 432 new single-family units, as compared to 280 between July 1, 2011 and Jan. 31, 2012. Residential construction spending has topped $112 million thus far this fiscal year, according to the report. And more activity could soon be reflected in the reports for months to come. Autumn Hall, one of the more active mixed-use development projects underway in the region, plans to unveil 79 new home sites for sale by early spring. Upon build out, Autumn Hall will have roughly 250 single-family homes. Meanwhile, 40 new lots could be in the works in the Belle Meade mixed-use development in the Myrtle Grove area along Carolina Beach Road. Called Belle Meade Village, Wilmington-based developer SHP Bellemeade LLC and Stroud Engineering have submitted plans to construct the new homes on lots ranging from 10,000 to 15,000-square-feet near the Sikes Lane and Pine Hollow intersection in the development, according to documents submitted with the Wilmington Development Services Department. No price range or development schedule was included in the documents submitted. Work also continues on Wilmington-based Coterra Development Company’s Woodlake subdivision near Ashley High School. More than 35 new lots are planned for the development in the coming months, according to county records. (source By J. Elias O’Neal Greater Wilmington Business Journal)

Become part of the homeownership percentage, call Network Real Estate today for all your Wilmington NC real estate needs. Our agents can help you with real estate in Carolina Beach , Kure Beach , Wrightsville Beach or the Wilmington NC area. Visit our easy to use website at www.NetworkWilmington.com

WHAT WILL THE NEW NORMAL FOR HOUSING BE

admin — Mon, 04 Feb 2013 18:12:08 +0000

Mortgage giant Fannie Mae recently offered some predictions of what the housing market’s “normal” will look like in the next two years. In its report, “Transition to ‘Normal’?”, Fannie says while the housing market has shown improvement, uncertainty remains over both the economy and the real estate market. “Our forecast is that 2013 and 2014 will exhibit below-potential economic growth,” according to the white paper. “This is despite the fact that we expect the housing rebound will continue and that the economy will benefit from the gradual increased growth of U.S.-based manufacturing, as well as the expansion of domestic energy production.”

The following are some of the projections Fannie made in its report:

Mortgage rates to stay low: Fannie Mae expects mortgage rates to remain low over the next few years. The mortgage giant expects rates will increase to no more than 4.2 percent by the end of 2014.
FHA loans may get more expensive: More costs may be assigned to Federal Housing Administration loans.
Refinancing drops: The boom in refinancing may have peaked last year with slower activity projected this year. “We expect 2012 to be seen as the high watermark for refinances and 2013 as the first of several transition years as the housing finance market transitions back to a more normal balance between purchase and refinance activity.”
Foreclosures continue to fall: Fannie expects foreclosures to continue to decline from their peaks as more alternatives to foreclosure are pursued.
Housing starts to rise: Fannie Mae predicts that housing starts will increase 23 percent in 2013 — which would be 60 percent more than the record low in 2010. Fannie expects housing starts won’t reach sustainable levels until 2016.
Mortgage originations grow: “Given our expectations of continued improvement in housing starts, home sales, and home prices in 2013,” Fannie Mae writes, “we project that purchase mortgage originations will rise to $642 billion from a forecast of $518 billion in 2012.”

Source: “‘Normal’ Housing Market May Not be What it Used to Be,” Realty Times (Jan. 30, 2013)

WRAR installs new president and officers

admin — Tue, 29 Jan 2013 14:32:12 +0000

The Wilmington Regional Association of Realtors (WRAR) installed R.J. Alex (Alexoudis) as the group’s 2013 president. Alex was officially sworn in at the WRAR’s annual Installation and Awards Banquet. Joining him on the board is Jody Wainio as president-elect; Sandra Beals as vice president; Ashley Garner as past president; and Will Leonard as president of the Realtors Commercial Alliance of Southeastern North Carolina (RCASENC). Amy Aldridge, Ryan Crecelius, David Eggleston Jr., Don Harris, Amy Holcomb, Sherri Pickard, John Pierson and Network Real Estate agent Neal Johnson took oaths to serve as directors. And other RCASENC officers were Stephen Hall as president-elect; Bryan Green as secretary/treasurer; and Cliff Ray as past president. The RCASENC directors are Hank Adams, Brian Eckel, Pete Frandano, Stephen Hobbs, Tyler Pegg and Elise Rocks. Several recipients of WRAR’s annual awards were also recognized at the banquet. Deb Hays was the recipient of the 2012 Realtor of the Year. Jimmy Hopkins closed approximately $75 million in 2012 and was honored as the 2012 Salesperson of the Year. John Pierson was selected as the 2012 Hall of Fame winner. Become part of the homeownership percentage, call Network Real Estate today for all your Wilmington NC real estate needs. Our agents can help you with real estate in Carolina Beach , Kure Beach , Wrightsville Beach or the Wilmington NC area. Visit our easy to use website at www.NetworkWilmington.com

US Ranked One of Most Affordable Worldwide Housing Markets

admin — Mon, 28 Jan 2013 20:34:03 +0000

Detroit topped the list for the most affordable housing market in the world, according to the Demographia International Housing Affordability Survey, which analyzed housing prices in 227 metro markets worldwide. Detroit has faced economic hardship with a big population loss from 1.8 million to 714,000 in the last 60 years. However, it is faring better: Suburban and exurban areas added 2.2 million, according to the survey. The U.S. had many of the most affordable markets that topped the housing affordability list. Other affordable markets included Atlanta, Cincinnati, Rochester, and St. Louis. On the other end of the spectrum, Hong Kong remained the priciest housing market in the world. Other least affordable markets with a population over 1 million included: Vancouver; Sydney; San Jose, Calif.; San Francisco and London. In all, six major markets in the U.S. were rated as “severely unaffordable”: San Jose, San Francisco, San Diego, Los Angeles, and New York. Overall, “the principal driver of unaffordable housing relative to median incomes is failure to maintain a ‘competitive land supply,’” according to the survey. Become part of the homeownership percentage, call Network Real Estate today for all your Wilmington NC real estate needs. Our agents can help you with real estate in Carolina Beach , Kure Beach , Wrightsville Beach or the Wilmington NC area. Visit our easy to use website at www.NetworkWilmington.com Source: “Demographic and Economic Challenges: The 9th Annual Demographia International Housing Affordability Survey,” New Geography (Jan. 21, 2013)DAILY REAL ESTATE NEWS | TUESDAY, JANUARY 22, 2013

Search for foreign investors could delay convention center hotel even longer

admin — Tue, 15 Jan 2013 14:14:37 +0000

WILMINGTON, NC (WWAY) — Another delay seems likely for Wilmington’s Convention Center hotel. At a briefing with city leaders this morning, the developer said it needs another extension. Hotel developer Harmony Hospitality said today it may need another three months to get the financing straight to move forward with plans to build an Embassy Suites. “We’re coming out of an economic situation where everybody wants something right now, so the delay is frustrating,” Wilmington Downtown Inc. Executive Director John Hinnant said. Harmony Hospitality is expected to ask City Council Tuesday night for another extension on moving forward with plans to build the hotel. The biggest hold-up Harmony faces is financing. A majority of the money is supposed to come from foreign investors through a federal program called EB5. “Money from other countries being invested in projects in the United States, in return for which they get a visa or two,” City Council member Laura Padgett explained. EB5 is the same program that helped provide financing for the downtown marina project. Hinnant says although it can be a lengthy process, it has a track record of success. “I know that the EB5 program has been successful,” Hinnant said. “We see projects happening now in Wilmington with EB5 investments. It just means more patience.” Padgett says although the waiting can be frustrating, the city’s patience will be rewarded. “In the end, I think that’s going to be the best choice we could have, and that will be an enhancement to the success of the Convention Center,” she said. Harmony Hospitality is also still waiting on a secured commitment from Hilton, which owns Embassy Suites. A Harmony representative would not talk on camera. Become part of the homeownership percentage, call Network Real Estate today for all your Wilmington NC real estate needs. Our agents can help you with real estate in Carolina Beach , Kure Beach , Wrightsville Beach or the Wilmington NC area. Visit our easy to use website at www.NetworkWilmington.com

Permitting Shows Housing Rebound

admin — Mon, 14 Jan 2013 17:16:58 +0000

New Hanover County’s construction sector finished strong for the year in December, particularly with new single-family housing starts. The county issued 601 permits for new single-family construction in 2012 – exceeding 2011’s total of 421 permits for new single-family construction and signaling a housing rebound for the county. According a report recently released on construction permits by the New Hanover County Development Services Department, 47 new single-family permits were issued last month – the same as a year earlier – for a total valuation of $12.7 million. It was the most new single-family housing permits issued by the county’s development services department for new home construction since December 2006 when 80 permits were vetted. In December 2007, as the region’s housing sector began cooling, New Hanover County issued 17 permits for new single-family construction. In all, New Hanover County officials issued 1,282 permits in December – also the same total of permits issued in December 2011. The largest project permitted in December was for Wilmington-based Live Oak Bank’s $8.4 million, 36,000-square-foot headquarters at 1741 Tiburon Drive in Tiburon Parc – a 105-acre mixed-use development between Independence and Shipyard boulevards. While the number of permits remained unchanged last month from a year earlier, construction spending slightly increased. More than $27.8 million in construction investment was recorded last month – a more than 4 percent increase from $26.6 million recorded December 2011, according to the county report. In November, county officials issued 1,484 permits, representing more than $25.9 million in construction investment. Source: Wilmington Greater Business Journal By J. Elias O’Neal

Housing Called Hottest Trade of 2012

admin — Mon, 07 Jan 2013 17:30:03 +0000

Record low mortgage rates and rising consumer confidence has been helping to give the housing market a lift and helped it become the hottest trade in 2012, CNBC reports. For example, stock shares of Pulte Homes and Lennar doubled or nearly doubled and helped the iShares U.S. Home Construction ETF rise more than 75 percent in 2012. Housing-related stocks started moving higher earlier on in 2012 as anticipation built over an increase in home prices. “The homebuilding sector was one of those stories that you knew it would turn around eventually, but it took a heck of a long time,” Mitchell Goldberg, president of ClientFirst Strategy, told CNBC. Still, despite the rises, the Home Construction ETF index is down more than 60 percent from its peak in 2006. Source: “Housing Becomes Hottest Trade of 2012,” CNBC (Dec. 31, 2012)