Union County Real Estate Talk

Charlotte NC Snow Day!

We don't have many opportunities for snow in Charlotte NC. But today is one of those rare days.  At my house we have about four inches of snow and brilliant blue skies.  Enjoy these photos that I took this morning around my yard.

Want to learn more about weather in Charlotte?

Moving from the North to Charlotte NC?  What You Need to Know about the Weather.

Copyright 2010.  Carol Fox.  Allen Tate Realtors.  *Charlotte NC Snow Day!*

Charlotte NC Home Buyers—Did Your Lender Pre-Qualify You, Pre-Approve You or What???

Are you a potential Charlotte NC home buyer?  Have you spoken with a mortgage loan officer?  Did your loan officer give you a document that says that you are qualified to purchase a home?  Are you mystified about what that document means?

I have learned to be wary of the pre-qualification and pre-approval letters that mortgage lenders issue to home buyers.  Here is why.  As a Charlotte NC home buyer, you may think that you have a document that entitles you to purchase a home without further scrutiny or loan hurdles.  In reality, what you may have is only an opinion from a loan officer that will not stand up to today’s documentation and review process.

Learn the four types of approval letters that lenders issue to make your home-buying process smoother and easier.  This is what you need to know.

• Pre-Qualification Letter.  This is the first step.  You speak with a loan officer on the telephone, the loan officer pulls your credit and asks you about income type and amount and financial assets.  None of your financial information has been verified and the loan officer can only issue an opinion that you should be able to qualify if your information checks out.  In my opinion, it is too early to make an offer on a home if you are at this stage.
• Pre-Approval Letter. To get this letter, you must take the next step and fill out a formal loan application form.  Your loan officer should ask you to supply documentation on income and assets that supports what you put on the loan application.  Your application is then submitted to an Automated Underwriting System or Desktop Underwriting System.  If this computer program gives you an accept, you can get a pre-approval letter.  Keep in mind that this approval is conditioned on an underwriter’s verification of the data entry into the program, any outstanding documentation, a property appraisal and title work for the property.  If the underwriter is unable to verify what is on your loan application, then the pre-approval letter is invalid.  I believe that most home buyers can make an offer on a home at this stage unless their financial situation is so complex that they should go to the next step.
• Approval Letter.  After the loan officer takes the application and gathers all the required documentation, an underwriter reviews the package for compliance with the Automated Underwriting Acceptance, mortgage product and lender guidelines.  If your loan package clears all of these hurdles, you can get a true approval with conditions letter.  Conditions could include additional documentation, an acceptable home appraisal, and clear property title.  Some lenders won’t issue an approval letter without the appraisal and title work.  Once you get the approval letter, the process is nearly complete, but you still must clear appraisal and title work hurdles.
• Commitment Letter.  Once the appraisal, title work and homeowner’s insurance policy are received, reviewed, and approved by the underwriter, you will get a commitment letter.  This letter states that you are approved with no conditions outstanding preventing the loan from closing, except perhaps a statement showing the prior sale of your current residence.  Your file is now Clear to Close.  Congratulations!  A clear to close means that you’ve made it to the end of the process.

Want to know more about buying a Charlotte NC home?

First Time Home Buyers Guide

Home Buyer Tax Credit

Copyright 2010.  Carol Fox.  Allen Tate Realtors.  *Charlotte NC Home Buyers—Did Your Lender Pre-Qualify You, Pre-Approve You or What???*

Charlotte NC Home Buyers—IRS Issues Documentation Rules for Home Buyer Tax Credit

Are you thinking of taking advantage of the Home Buyer Tax Credit in 2010?  If so, you need to know the eligibility requirements and deadlines for the program.  In addition, the IRS has issued new rules requiring certain documentation to be submitted with your request for the tax credit. 

What do Charlotte NC home buyers need to know about the home buyer tax credit and the new documentation requirements?

Who qualifies?

• A first time home buyer is someone who has not owned a principal residence during the three years prior to the date of purchase.
• A repeat buyer is someone who purchases a home to use as a principal residence after living in their current residence for at least five consecutive years in the past eight years.

What is the amount of the tax credit?

• First time home buyers may get ten percent of the cost of the home up to $8000.
• Repeat home buyers may get ten percent of the cost of the home up to $6500.

What are the deadlines?

• The home must be under contract by April 30, 2010 and close no later than June 30, 2010.

What documentation must be submitted when claiming the Home Buyer Tax Credit?

• IRS Form 5405 must be submitted along with certain documentation.
• First time home buyers must submit a copy of their settlement statement, or HUD1 form, with Form 5405.
• Repeat home buyers must include documentation to show their five-year residency in the previous home, such as mortgage interest statements, property tax records, or homeowners insurance records.
• Tax filers wishing to claim the Home Buyer Tax Credit must file with paper forms rather than electronically because of these documentation requirements.

What should be the first step in the process for Charlotte NC home buyers who want to participate in these programs?

• First time home buyers should contact a real estate broker and a mortgage loan officer for home purchase prequalification.  Learn more about buying your first home here.
• Repeat home buyers will want to contact a real estate broker to determine the value of the current residence.  Click here to request a comparative market analysis of your home.

Copyright 2010.  Carol Fox.  Allen Tate Realtors.  *Charlotte NC Home Buyers—IRS Issues Documentation Rules for Home Buyer Tax Credit*

Charlotte NC Schools—How to Pick a Public School for Your Child

Yesterday I attended a talk given by the Superintendent of the Charlotte-Mecklenburg Schools (CMS), Dr. Peter Gorman.  Dr. Gorman is the dynamic leader of the Charlotte NC schools, the 18th largest school district in America.  He spoke about the challenges of running this large system that covers 500 square miles and has 176 schools with 137,000 students.

Dr. Gorman is focused on attaining school success.  He measures school success by emphasizing student growth rather than proficiency.  Each student should have at least a year’s academic growth by the end of the school year.  Dr. Gorman noted that 89% of the CMS schools averaged a year’s growth last year compared to only 54% five years ago.

The talk turned to picking a school for a child who will attend Charlotte NC schools.  Dr. Gorman outlined six steps to take in order to choose the best school for your child.  These six steps are information gathering activities.  Most of the information can be found on the Charlotte-Mecklenburg Schools website.  Here are Dr. Gorman’s six steps and links to the website pages where the information can be found.

How to Pick a Public School for Your Child

1. Read the School Progress Report for the school.  School progress reports for each school include test results, an explanation of the results, surveys of the school from students and parents, and safety audit reports. 

http://www.cms.k12.nc.us/cmsdepartments/accountability/Pages/SchoolProgressReports.aspx?year=2008-2009

2. Look at the School Quality Review.  School quality reviews are independent reviews of a school by a team of three trained and highly experienced educators.  These reviews focus on the quality of education in each school in the areas of achievement, learning and teaching, curriculum, leadership and management and parental involvement. 

http://www.cms.k12.nc.us/cmsdepartments/accountability/cfsi/Pages/SQRs.aspx

3. Review the School Improvement Plan.  Each school improvement plan identifies areas for improvement and measures to be taken specific to the individual school. 

http://www.cms.k12.nc.us/cmsdepartments/accountability/cfsi/Pages/SIPs.aspx?year=2009-2010

4. Use the School Comparison Tool to compare individual schools.  This tool presents a scorecard for high academic achievement with goals and actual results for each school.  Two schools can be compared side-by-side. 

http://pmd.cms.k12.nc.us/Strategic%20Goals/Goal%20I%20-%20High%20Academic%20Achievement/Compare.aspx

5. Visit the school.  Dr. Gorman advises visiting the school at its busiest time.
6. Hang out at the school pick-up line and ask the parents what they think of the school.

Learn more about Charlotte NC Schools

Charlotte NC Schools—Magnet Programs are an Option for Students

Charlotte NC Schools Send Parents to School

Copyright 2010.  Carol Fox.  Allen Tate Realtors.  *Charlotte NC Schools—How to Pick a Public School for Your Child*

Charlotte NC Short Sales—Get a Professional Evaluation of Your Short Sale Situation

Is your mortgage higher than your home’s value?  Do you need to move or sell your Charlotte NC home?  If so, you may be facing a short sale.

I am pleased to announce that I can offer a professional evaluation of your particular situation and services to help you navigate the short sale process through the Allen Tate Short Sale Assistance Program.

What is a short sale?  A short sale occurs when a homeowner owes a lender more money than the current market value of their home and lacks other liquid assets to satisfy liens.  This means that the home will not sell for enough money to pay off the mortgage and other property-related debt in full.  In such cases, a “short sale” may be negotiated with the lender to bridge the gap between the balance due on the mortgage and an offer for the sale of the home.  A short sale is an effort to avoid the foreclosure process.  Click here to learn more about short sales.

Allen Tate Realtors has partnered with a company that specializes in short sales to provide services to sellers who need to navigate the Charlotte NC short sale process.  This short sale assistance program provides you with the following services:

• Identifies the options available for your individual situation.
• Determines if your property is a candidate for a short sale.
• Contacts your lender and cultivates a relationship with the key contact for mediation.
• May be able to stop the foreclosure process and guides you through a short sale of your property.
• Negotiates with the lender once a purchase contract has been written.
• Negotiates with your lender regarding other property-related debt, including back taxes, HOA fees and other liens.

The Allen Tate Short Sale Assistance Program is available only to Charlotte NC sellers who list their homes with Allen Tate agents.

Contact me today at 704-814-6242 to learn more about this professional program for Charlotte NC short sales.

Copyright 2010.  Carol Fox.  Allen Tate Realtors.  *Charlotte NC Short Sales—Get a Professional Evaluation of Your Short Sale Situation*

Charlotte NC Tops Forbes List of Best Cities to Buy Real Estate Now

Are you are a renter?  Should you become a home buyer?  A new study may give you some answers.

According to Forbes Magazine, now may be the best time in years for Charlotte NC renters to become home buyers.  Forbes created a list of top cities that are the best places to buy real estate and Charlotte NC came in at Number 2 on the list. 

How did Forbes identify the best cities to buy now?

First, the Forbes study looked at the premium to buy, which is the difference between what you pay monthly to own a home versus renting.  The premium to buy has dropped dramatically.  Forbes then looked at future appreciation from the five-year Case Shiller home price outlook.   A low premium to buy combined with excellent future appreciation prospects identified ten cities as smart places to buy a home now.

Here are the numbers for the Charlotte NC metropolitan area from the Forbes study.

• Premium to buy, 15 year average:  56.9%
• Premium to buy, Q3 2009:  48.2%
• Five-year home price index forecast:  12.55%
• Median rent:  $671
• Median home price:  $199,600.

The First Time Home Buyer Tax Credit gives Charlotte NC renters another reason to buy now.  Contract for a home by April 30, 2010 and close by June 30, 2010 and you may be eligible for up to $8000 in tax credits from the federal government. 

Click here to learn more about tax credits for first time home buyers and repeat buyers.

Copyright 2010.  Carol Fox.  Allen Tate Realtors.  *Charlotte NC Tops Forbes List of Best Cities to Buy Real Estate Now*

Charlotte NC Schools—Magnet Programs are an Option for Students

Students in the Charlotte-Mecklenburg Schools (CMS) have options other than the traditional neighborhood school.  Magnet schools are one of those options.  CMS offers theme-based magnet programs to provide opportunities geared to student interests, abilities and talents.  The school system believes that the magnet programs foster innovation in learning, greater parental involvement and student engagement, and higher student achievement.  Students receive traditional academic instruction but also education tailored to the student’s special interest or talents.

Charlotte-Mecklenburg Schools currently offers 11 magnet programs or themes in 40 schools.  Some of the themes are available only in one school while others are county-wide.  Some of the themes focus on subject areas, others focus on learning methods.  A list of the themes and a brief description follow.

1. Center for Leadership and Global Economics (K-5)  Focuses on developing leadership skills needed to participate in the global economy.  Offers the first Arabic language instruction in a North Carolina School.
2. International Baccalaureate (Three programs for K-12)  Focuses on internationalism and service to society with rigorous academic study.  Includes a diploma program for Grades 11 and 12.
3. Learning Immersion and Talent Development  (K-5)  Provides a rigorous academic curriculum challenging students to reach their fullest potential.  The program in K-2 identifies gifted children to continue in the talent development program in grades 3-5.
4. Math, Science and Environmental Studies (K-12)  Provides special classes focusing on science, technology, environment and math.
5. Military and Global Leadership (6-12)  Provides a traditional curriculum in a structured, military-themed school atmosphere.
6. Montessori (PreK-7) Provides instruction in the non-traditional Montessori approach where students work individually or in small groups.
7. Paideia (K-5)  Provides a rigorous liberal arts education that enables students to learn the duties of citizenship in a democracy.
8. Phillip O. Berry Academy of Technology (9-12)  Provides practical classroom instruction in three academies:  The Academy of Information Technology, the Academy of Medical Sciences and Biotechnology and the Academy of Engineering.
9. Traditional (K-5)  Students are taught a rigorous traditional curriculum in a structured classroom and held to a high standard of academics and conduct.
10. Visual and Performing Arts (K-12)  In addition to a traditional academic curriculum, students receive instruction in the visual arts, theater arts, music and dance.
11. World Languages (K-12)  Students have the opportunity to become fluent in Chinese, French, German, Japanese and Spanish.  Students have the opportunity to become fluent in three languages by grade 12.

Any student may apply for a CMS magnet program through a lottery process.  Transportation is provided if the magnet school serves the student’s transportation zone or is a countywide program.  CMS hosts a series of magnet-school fairs to provide information about the various programs in January.  Online application for the magnet schools begins January 8, 2010 and continues through February 8, 2010.

Click here to learn more about magnet programs in the Charlotte NC Schools.

Copyright 2010. Carol Fox.  Allen Tate Realtors.  *Charlotte NC Schools—Magnet Programs are an Option for Students*

Christmas in Charlotte NC Small Towns

Would you like to find a quaint, old-fashioned setting to celebrate Christmas?  You don’t have to travel far from Charlotte NC to find small, family-oriented holiday festivities.  Just stop by area small towns such as Matthews, Mint Hill and Lake Park.

This is a photo blog of Christmas in these small towns.  Enjoy the holidays!

Christmas in Matthews NC

Matthews NC has the most extensive festivities.  The holidays start in early December with a street festival, a tree lighting ceremony with entertainment and the arrival of Santa.  Downtown businesses also sponsor a candlelight holiday stroll later in the month.

Christmas in Mint Hill NC

Mint Hill NC also has a tree lighting ceremony.  These photos show the Mint Hill Town Hall with the tree in the plaza behind the building.

Christmas in Lake Park NC

Lake Park’s town center is decked out for Christmas.  Each of the town’s neighborhoods has a contest for the best decorated home.

Copyright 2009.  Carol Fox.  Allen Tate Realtors.  *Christmas in Charlotte NC Small Towns*

What Charlotte NC Home Sellers Can Learn from the 2009 NAR Profile of Home Buyers and Sellers

If you are considering selling your Charlotte NC home, you should be interested in the results of the annual survey conducted by the National Association of Realtors (NAR).  NAR surveys home buyers and home sellers every year to gather information about the demographics, housing characteristics and the experience of consumers in the housing market. 

In July 2009, NAR mailed an eight page questionnaire to consumers across the country.  Of responses received, 7.9 percent came from the Charlotte NC area.  The statistics that follow are specific to the Charlotte marketplace.  This profile provides important lessons for all Charlotte NC home sellers.

Who purchased Charlotte homes?

• Forty-five percent of the home buyers were first-time buyers.
• The typical first-time home buyer was 31 years old while the typical repeat buyer was 46 years old.
• The median income was $57,900 among first-time buyers and $93,500 among repeat buyers.
• Twenty-two percent of recent home buyers were single females and ten percent were single males.

Lessons for Charlotte NC home sellers:  Sellers in a price range affordable to first-time home buyers are likely to have a selling advantage in the current marketplace.  Today’s home buyers tend to be younger and about a quarter of them are female so sellers should ensure that their homes have been updated to appeal to this demographic.  Fixtures, appliances and paint colors should be chosen to appeal to these buyers.  Seller assistance with buyer closing costs will be important to many buyers.

What type of homes were purchased in Charlotte?

• New home purchases were at the lowest level in eight years.  Only 18 percent of homes purchases were new construction.
• The typical home purchased was 1900 square feet in size and was built in 1989.
• Seventy five percent of home buyers purchased a detached single-family home.
• The median price of homes purchased was $198,000.
• Commuting costs were considered very or somewhat important by 78 percent of buyers when choosing a home.

Lessons for Charlotte NC home sellers:  Resale home sellers in Charlotte have a better opportunity to sell their home than in recent years because of the slowdown in new construction.  Condominium sellers may struggle because of lower demand for attached homes.  Location and access to easy commutes may give some home sellers an advantage.

How did Charlotte home buyers find their homes?

• The first step in the home-buying process for more than one-third of home buyers was looking online for properties.
• Eighty-eight percent of home buyers used the internet to search for homes.
• The typical home buyer searched for 12 weeks and viewed 12 homes.

Lessons for Charlotte NC home sellers:  Internet marketing is a must for today’s home sellers.  The typical home buyer toured only 12 homes before making a purchase decision and used online searches to narrow the number of houses to tour.  Home sellers must ensure that their properties will be attractive in online searches.  This means that homes must be staged for good photography and that sellers should choose a real estate professional who understands and uses all the tools of internet marketing.

All Charlotte NC home sellers considering a move in 2010 should learn more about the recently enacted Home Buyer Tax Credit for repeat buyers.  Click here to see if you qualify.

Copyright 2009.  Carol Fox  Allen Tate Realtors.  *What Charlotte NC Home Sellers Can Learn from the 2009 NAR Profile of Home Buyers and Sellers*

Charlotte NC Ranks Well on Housing/Economic Recovery Lists

Charlotte NC was the golden child of the Carolinas during the 1990s and the boom years after 2000.  Plentiful jobs, reasonable housing prices, low taxes and great weather lead to high growth and prosperity for the Queen City.  The economic slowdown came late to Charlotte but the financial meltdown in the fall of 2008 brought the national economic crisis home.

Have the financial meltdown and the resulting Great Recession knocked Charlotte NC off its golden perch?  Perhaps not.  Forbes Magazine recently published three articles that ranked American cities in terms of their prospects for recovery and liveability.  Charlotte fares pretty well on each of these lists.

In December, Forbes looked at cities recovering fastest from the foreclosure crisis.  Charlotte NC ranked #27 out of 100 cities.  The study looked at the percent of loans that were 90+ days delinquent, the percent of loans in foreclosure, and the deterioration rate from October 2008 to October 2009 to create the rankings.  In Charlotte, 4.7% of loans were 90+ days delinquent and 1.8% of loans were in foreclosure.  According to the magazine, the metropolitan areas where housing prices did not become overheated will lead the way out of the foreclosure crisis. Source:  Cities Recovering from the Foreclosure Crisis. 

In November, Charlotte NC was ranked #56 on Forbes’ list of Best Bang for the Buck metropolitan areas.  The magazine created these rankings by looking at housing affordability, time travel, real estate taxes, unemployment, vacancies, jobs forecast, housing prices forecast, and foreclosures.  Charlotte scored best on real estate taxes (ranking #32), jobs forecast (ranking #18) and housing prices forecast (ranking #22).  The study concludes that areas with a stable housing market, low taxes, and reasonable commuting times are where people can get the best bang for their bucks.  Source:  Best Bang for the Buck Cities.

Another November Forbes article ranked Charlotte #54 among America’s fastest recovering cities. Unemployment, foreclosure rates, housing prices and average days on the market were used to create these rankings.  The magazine concludes that relatively stable housing and a diversified economy are helping cities like Charlotte NC recover faster than most metropolitan areas.  Source:  America’s Fastest Recovering Cities.

Learn more.  Request a free Charlotte NC Relocation Guide.

Copyright 2009.  Carol Fox.  Allen Tate Realtors.  *Charlotte NC Ranks Well on Housing/Economic Recovery Lists*