Ten Commandments of Buying a Home with A Loan in the NC Mountains

When you’re buying a home in the mountains of Western North Carolina, you may be purchasing it using a home loan. 60-70% of buyers here use a loan as a way to secure their home.

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I came across 10 Commandments to guide you from the time you secure your loan all the way to closing day. I wanted to share these because they’re true and we see these mistakes often. Here they are:

  1. Thou Shalt NOT make CASH deposits without first talking to your loan officer. If your payroll is not direct deposit, deposit entire check, then make a withdrawal. Any deposits not documented will be deleted from your available cash to close.
  2. Thou Shalt NOT change employment, become self-employed, or quit your existing job.
  3. Thou Shalt NOT buy a car, truck or van. If you do, you might have to live in it!
  4. Thou Shalt NOT use charge cards excessively or let your account fall behind on payments.
  5. Thou Shalt NOT spend money you have saved or allocated to closing.
  6. Thou Shalt NOT omit debts or liabilities on your mortgage loan application.
  7. Thou Shalt NOT buy furniture on credit.
  8. Thou Shalt NOT originate any new inquiries on your credit.
  9. Thou Shalt NOT change bank accounts.
  10. Thou Shalt NOT co-sign a loan for ANYONE.

Use these as a guide and your opportunity to buy your home greatly increases! We’ve literally seen people not be able to buy their house because they violated one of the above commandments during closing.

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Streamline your loan process when you buy your home in Murphy NC

Buying a home is exciting, but frankly, getting a loan isn’t. It’s a necessary process if you need to borrow money to purchase your dream home. Around 60% of our closings involve a loan, so we certainly can help with the process. Remember, there is a HUGE benefit to using a local lender as opposed to a big national or out-of-town lender. Click here to read our article why.

Here’s a few things you’ll need to bring with you to speed up your loan approval process:

  1. Residence History
    • Your street address, or addresses, for the past two years.
    • If you rent, your landlord’s contact information.
    • If you own your house, your mortgage lender’s name and account number.
  2. Employment History
    • The name and contact information for any employer you’ve worked for over the past two years.
  3. Income Information
    • Your gross monthly salary and/or other income.
    • Year to Date pay stub.
    • W2’s for the past two years.
    • Signed tax returns for the past 2 years, especially if you work on commission or wish to use interest, dividends, or bonus income to qualify for the loan.
    • If self employed, bring the past two years and the current Profit & Loss statement in addition to tax returns.
    • If you’re not currently employed, bring proof of other sources of income.
  4. Deposit, Retirement and Equity Account Info
    • You’ll need statements for the past two months of all checking, savings, IRA, retirement, 401(k), stock and mutual fund accounts. Make sure the statements show your balance and account numbers.
  5. Debt Information
    • Name, contact information, account number, balance, and monthly payment(s) on all outstanding loans and credit cards.
  6. Real Estate Information
    • The address, current market value, and loan information of all real estate you own.
    • Copies of any leases on any rental property you own.
  7. Personal Property Information
    • The rough value of your furniture and other personal property including vehicles, boats, campers, etc. and their make/model.
  8. Sales Contract
    • If you already have an offer to purchase in place, bring a copy with you. Otherwise, your Realtor can forward it to the lender once you’ve found your property to purchase.
  9. Fees
    • You’ll have to pay for your appraisal and credit report with a check, so bring a couple checks with you for any fees that apply.
  10. Other
    • Government issued ID
    • If applying for a VA Loan, you’ll need military discharge papers (Form DD214) and your Certificate of Eligibility.

This article is courtesy of a contribution made by Teresa O’Blenes. She is a mortgage lender with BB&T Bank here in Murphy NC. She’s an excellent resource and can be reached at 828-837-8017.

Call The Poltrock Team – REMAX of Murphy NC –www.MyMurphy.comJohnPoltrock@gmail.comCall us Toll Free at 1-866-Murphy-NC or 1-866-687-7496 – Murphy’s #1 Real Estate Team

Fraud for Housing – Lying to Get a Home in Murphy, North Carolina

When you buy a home – whether its your primary home or a vacation home – most folks need to apply for a loan to finance a portion of their investment. When you’re going through all the documents, it is important to understand exactly what you’re saying.

The real estate and mortgage fraud cases that dominate the headlines usually have to do with fraud for profit. A ringleader conspires with industry insiders – usually a real estate agent, appraiser, and loan officer – to obtain mortgage loans they have no intention of ever repaying.

Another form of mortgage fraud is also common – fraud for housing. According to an FBI source, "Fraud for housing represents illegal actions perpetrated solely by the borrower. The simple motive behind this fraud is to acquire and maintain ownership of a house under false pretenses. This type of fraud is typified by a borrower who makes misrepresentations regarding his income or employment history to qualify for a loan."

Fraud for housing may include any of the following attempts to deceive the lender into approving a mortgage loan:

•           Claiming on a loan application that you earn more money than you actually earn.
•           Presenting counterfeit paycheck stubs to verify employment or income.
•           Intentionally overestimating the value of your assets on a loan application.
•           Claiming on a loan application to work for a particular employer when you do not.
•           Adding someone to the loan application as a co-borrower who does not intend to live in the home with you or assist you in making payments.
•           Signing a loan application that contains blanks you know the loan officer will fill in for you later with false information that will help you qualify for the loan.
•           Getting a friend or relative who owns a business to say that you work there.
•           Fudging the numbers on a document, such as a tax return, to make it look like you earn more than you do.
•           Applying for a loan in excess of the sale price paid to the seller, so you can obtain the surplus proceeds in cash back at closing.

Whenever you apply for a mortgage loan, you must sign the application – technically referred to as a 1003 (ten-oh-three) or Uniform Residential Loan Application. Just above the space for your signature is a statement worded something like this:

I/We fully understand that it is a federal crime punishable by fine or imprisonment, or both, to knowingly make any false statements concerning any of the above facts as applicable under the provisions of Title 18, United States Code, Section 1001, et seq.

In other words, it is a felony to lie on a loan application, whether for profit or housing.

Some people argue that fraud for housing is a victimless crime. After all, the person applying for the mortgage loan really wants to keep the house and has every intention of making the monthly payments and paying off the debt. However, that’s beside the point. The real issue is that when people commit fraud for housing, they mislead the lender into approving a loan that is riskier than the lender would otherwise consider. It contributes to increases in foreclosures and the cost of mortgages to all consumers.

Knowing what constitutes fraud for housing can help you avoid committing it or becoming an accomplice if a loved one tries to make you complicit in their plans. Remain on the lookout for mortgage fraud of any type, and do your part to reduce fraud and make mortgage loans and housing more affordable for everyone, including your neighbors.

 Ralph R. Roberts, GRI, CRS is a real estate and mortgage fraud forensics expert and author of Protect Yourself from Real Estate and Mortgage Fraud: Preserving the American Dream of Homeownership (Kaplan Publishing).

During the real estate bubble, this type of loan fraud was sadly prevalent. In fact, many professionals agree this very issue caused a large portion of the inflated prices and has now left many would-be flippers and investors "holding the bag." Laws are in place for a reason, and its very important we follow them and banks enforce them.

If you’re looking for a primary home or a vacation home and are unsure of your financial situation, let us know! We have experience in both conventional and unconventional financing that will put you in your new home without putting you in a dangerous situation.

John and Jessica Poltrock – The POLTROCK TEAM at RE/MAX Mountain Properties – www.MyMurphy.comJohnPoltrock@gmail.com – Real estate in the Mountains of North Carolina – Call Toll-Free (877) 837-3002 and demand The POLTROCK TEAM!

Murphy has new bank offering great land loans

Many of our customers and clients come to the mountains of Murphy looking to purchase real estate they can hold on to for many years and enjoy. Quite a few are specifically looking for an acre lot or more and want to build their cabin in a couple of years when they retire or have more “spendable” money.

Great news! Nantahala Bank has just had their grand opening (in their new, full service office) and offer exceptional loan programs. I have personally used their products (checking, land loans, and construction loans) with great results. They have an excellent team that truly works together for the client.

In regards to the land loans, they have many options. 3-15 year amortization, interest only, great rates, and a whole lot of others in between. They’re a great local bank and you can find them on the web at www.NantahalaBank.com

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