In today’s volatile mortgage/housing market, it’s critical to be prepared when entering into a purchase contract with a seller. Criteria have changed considerably when applying for a mortgage and one must be ready for much more stringent underwriting/approval guidelines. For example, agency (Freddie Mac) guidelines have changed regarding overall debt to income ratios – in other words the amount of total debt has been capped regarding acceptable underwriting levels.

So here are a couple of pieces of advice when preparing to meet with your Mortgage Banker to discuss your situation…

First – have all supporting documentation together and current. Bank statements and investments statements from two years ago are not relevant. Secondly – have all outstanding liens and judgments paid if possible – this makes it easier for the approval process to proceed without delay.

And when shopping around for mortgages make

So where do we go from here? Well let’s see… Interest Rates are still very attractive – it has certainly become a buyers’ market in many areas across the triangle and country. The Federal Reserve has cooperated with us so far year to date, but now seems poised to raise rates perhaps at their August meeting in an attempt to strengthen the dollar and hold off inflation.

The European Central Bank seems to be delivering a financial model in which the Federal Reserve may be following… stay tuned for more on that story. But in the meantime, we still have a housing industry that has been battered nationally by declining prices, increased unemployment figures and a massive number of foreclosures. Another tough pill to swallow if the Fed begins making it even more difficult to buy a home by increasing the cost of money.

But then again we need a stronger dollar to fight against ascending cost of oil – and to hold off inflation. So

Do you remember that crazy little thing called consumer confidence? And do you remember how we discussed how low that level of confidence is these days? Well it just got worse. The U.S. unemployment report last week had its largest one month jump since 1986. Ouch! We’re still significantly lower here in NC though – a testament to strong business infrastructure and higher education.

Foreclosures are on the rise nationally, and are up as well here in NC. What most people who are either in or about to enter foreclosure need to realize is that lenders do not want to be the owners of millions of homes. Open communication is critical during this time – i.e. Don’t stick your head in the sand thinking this problem will go away. Call your lender/servicer to discuss any financial roadblocks in your life and put in place a payment plan to help keep you in your home and maintain your strong credit rating.

The good news is that there is pending

How “green” are you these days? Using low VOC paints at home? Using recycled wood products from reclaimed sources around the US? How energy efficient is that new HVAC unit you just installed? These and many others are just some of the options that people are using in today’s market when either building or remodeling their homes – in an attempt to raise their level of environmental consciousness.

What does green mean to you? Do you have to be wealthy to be green? How do I know what products are green? How do I know what contractors are licensed as true green contractors? All of these questions come into play when considering moving to greener pastures.

The most important thing we can do as consumers is help to create a paradigm shift in the mentality of the home owner, so that it becomes second nature when thinking about how to lessen our impact or “carbon footprint” on the environment.

So make certain that

So how are you feeling these days about your house and the economy? Confident? Not so much says the most recent Consumer Confidence Report released today... the biggest drop in sixteen years offers evidence that many consumers are feeling downright dismal about the current and future state of their economic well being.

So how does this translate to the housing market? In a direct and impactful way I’m afraid to say… consumers tend to align their feeling of wealth with the perceived value and equity in their homes. When home sales and values are declining on a national level (always remember we deal in the local approach with real estate)… those stories impact the psyche of the consumer across the land. If we’re not feeling as wealthy, then we tend not to spend money on perceived luxury items. That lack of spending creates a tremendous trickledown effect and begins to weigh on everything and everyone.

Gas prices are a big trigger right