North Carolina has the 6th lowest set of lender fees in all of the US according to a recent survey conducted by Bankrate, Inc. In this survey North Carolina was only bested by Hawaii, Alaska, South Carolina, California and New Mexico.
Low Lender Fees
Bankrate, Inc is the internet’s leading aggregator of financial rate information. In this hypothetical purchase Bankrate requested a good faith estimate from up to 10 different lenders in each state. The amount requested was for a $200,000 mortgage for a single family home with a 20 percent down payment. The average amount of lender fees in North Carolina was $1,840. But, when you add in other costs associated with a closing such as attorney, survey and appraisal the over-all closing costs averaged out at $2,558. Closing costs are the out of pocket expenses the buyer must pay in addition to the 20 percent down payment.
Home Loan Qualifications To Tighten
I spoke with a vice president of a prominent Crystal Coast bank this week and found out some disturbing news. Starting January 1, 2014 mortgage loan qualifications will tighten. Currently a 660-680 minimum credit score is needed but that will soon change.
Debt to income (DTI) ratios will be tighter too. DTI is the amount of reoccurring debt you have (car loan, credit cards, house payment, etc) compared to income. The lower your DTI number the better. A DTI of 36 is usually pushing the limit.
For example if you had $725 a month of reoccurring debt with a monthly income of $2,000 then you would have a DTI of 36.
The new lending guidelines will not be available until November. Until then all we know is that getting a home loan is about to become more difficult along the Crystal Coast and every where else.
Contact Margaret Hitchcock for your new home or secondary residence along the Crystal Coast of North Carolina. Margaret is a Realtor with many years experience in locating the perfect waterfront, waterview, ocean or soundside property. Off water sites offer the luxury of the coast at an ideal price. Margaret also specializes in foreclosures and short sales! Contact her today at (252) 269-2893