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Achieving the dream
By Kathleen Dayton
Staff Writer
Some consumers also are not aware of organizations and programs that help would-be homeowners achieve the American Dream.
Debbie Kidd, director of the Home Ownership Resource Center, a division of North Charleston-based Family Services Inc., said the center offers a free first-time home buyer education course and takes participants on bus tours of affordable communities.
“Developers love it because you can bring 150 people to the development in one day,” Kidd said. “Those are educated consumers who are pre-approved to buy a house and are looking for something affordable in the community and it’s a great way to showcase the property.”
The home buyer course teaches people the difference between adjustable rates and fixed rates, explains what points are and helps direct consumers to properties that are not priced beyond their means. An August bus tour resulted in seven sales, Kidd said. The Home Ownership Resource Center also offers a credit repair class and loan default clinics.
“Six months ago, some people could get approved to buy a house, but now they have to improve that credit score,” Kidd said.
Borrowers with $500 down and a 580 credit score could also get a 100% loan six months ago, but that credit score now has to be 640. Lenders are looking with far more scrutiny at borrowers and changing some of the rules.
Nick Strable, a Prudential Carolina agent in Mount Pleasant, said a client who wanted to refinance spent four to six weeks longer than anticipated because of continued requests for more information.
“It’s taking longer to get the deals,” Strable said. “The lawyers are having a hard time because the paperwork is becoming more rigorous. Every aspect of the deal is getting harder to do. To balance that out, deals are being done, houses are being sold. I think people have to stand back and see that we were in an unrealistic position and now we’re coming back to a normal position.”
Ryan Bluestein, a real estate and litigation attorney with Bluestein & Johnson LLC, said he has not had any closings fall through because the lender went out of business, but he has received warnings about some lenders via fax and e-mail.
“The title insurance companies are e-mailing or faxing warnings to the title insurance agents to be on the lookout for loans that can’t be funded,” Bluestein said.
Bryan Crabtree, president of Mount Pleasant-based Weichert Realty-Dean Kelby, said although buyers are scared by what they’ve been reading and hearing, a good percentage of the local market is still in good shape.
“If you can verify income with a tax return and a W-2, if you can put any sum of money down, if you have a good credit score and can buy in an affordable range…you can get a good deal right now and should take advantage of it,” Crabtree said.
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