Three weeks ago I published a blog titled 2012- Buy a Home or Keep on Renting- What's your Plan? Since then I've heard from some people saying that they enjoyed the article but wished I had a quick spreadsheet they could see summarizing the numbers I presented as this is how they grasped numbers best. So I took a little time and put one together which I present here.
Just a couple of days ago I was on my way to show a home to some buyer clients and was listing to NPR and heard a conversation about how the combination of historic low-interest rates combined with home prices being down anywhere from 10%-40% from their record highs just 5 years or so ago really made this the ideal home for home buyers. The problem the speaker was saying was that mortgages were harder for many buyers to come by than at any other time in recent history and that this was the primary reason the home market was still struggling to recover.
I know from first hand experience that this is in fact true and it's one of the reasons that I want to sit down with my potential buyer clients before going out and showing them anything. One of the first things I do is ask a few simple questions to determine which of the many lenders I work with would probably be the best fit for that buyer. Trust me not every buyer works well with every lender and this is just one place that having an experienced buyer broker pays dividends. Good Buyer brokers do not work with just one or two preferred lenders, they work with half a dozen or more and are constantly seeking information on what's available so that they can help their clients get the best possible loan.
Where To Find The Best Possible Loan
For my clients who can take advantage of local credit unions this is often where I will start, as credit unions typically do not sell their loans on the secondary market, they hold them in-house and have considerably more flexibility in what they can offer and who they will approve. Smaller local banks are also excellent sources for buyers who may not slot it perfectly with the big banks.
The larger national banks do have good programs though because they all re-sell their loans on the secondary market tend to have tougher guidelines, though if you are a buyer with good credit and are seeking a conventional loan, these are often your best bet.
In my particular area I work with a lot of doctors and medical residents as both Duke and UNC/Chapel Hill have big time medical programs, and because of this I've partnered up with SunTrust Bank as they are one of the only banks in the area still offering a very attractive Doctor Loan Program for medical residents as well as for licensed medical doctors.
At any rate I hope the spreadsheet I created is helpful and if you are interested in possibly buying a home in Durham, Chapel Hill, Hillsborough, Pittsboro, Cary or the surrounding areas in North Carolina, and would like to sit down for a no obligation, low pressure initial buyer meeting, feel free to contact me. I'd be happy to meet you. I invite you to get in touch with me if you have any further questions or would like to start looking at homes for sale in the area.