Fast USDA Turn Time!

30Days

**Call us today and ask about the changes to credit requirements for USDA loans!

BIG USDA NEWS!!

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Attention Agents!!!!

You read that right….6 DAY TURN AROUND TIME ON ALL USDA LOANS!!! That means we can get your USDA loans closed FAST!

Call us today! 770.924.1111

Is USDA right for you?

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Looking to buy a home in Georgia but don’t have a down payment, you may want to look into a USDA loan. A USDA loan, also known as a Rural Development Loan, is a government insured home loan that allows qualified home buyers to purchase a home with NO Money Down. USDA Home Loans offer 100% financing to qualified buyers, and allow for all closing costs to be either paid for by the seller or financed into the loan. USDA offers some the lowest rates of any loan product, and you will always have a fixed interest rate.

Am I Eligible for a USDA Loan?

There are 3 main factors that need to be determined…

Credit Worthiness:
When an underwriter reviews your credit history, the major thing they will be looking for is a history of paying your bills in a timely
fashion. If you have had blemishes in the past they may be overlooked as long as you have reestablished your credit over the past 12 months.
Generally, any open judgments or collections will need to be paid off before you close on your new home but every situation is different so on occasion there can be some flexibility when it comes to smaller collections and medical collections.

USDA Loan Income Restrictions:
USDA loans are full doc loans, meaning that you will be required to fully document your income. USDA will generally want to see a two year history of employment or consistent income. Exceptions on the two year requirement can be made for applicants such as students. On a USDA Loan Assets are not required for approval, but can certainly help overcome any possible blemishes on credit.

Where You Want Live:
In order to qualify for a USDA Loan your home must be located in a designated USDA rural area. It might surprise you just how many areas of the Georgia do qualify for these 100% financing home loans. In fact most the majority of Counties in Georgia are either 100% eligible for USDA loans, or have areas within them that are eligible. To learn more about USDA Home Loans and how to take advantage of this great program, call the USDA Loan Experts at Mortgage Solutions of Georgia for a free credit consultation. 770.924.1111

Q & A with The Go To Guys…..When can you purchase a home after Bankruptcy?

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Dear Go To Guys,
When Can I Repurchase Again After Bankruptcy?

Answer:
This is a question we often get asked. It all depends on which type of financing you are looking to get.

Conventional: For a chapter 7 Bankruptcy it is 4 years and 2 years for a chapter 13 bankruptcy, before a buyer can repurchase again using Conventional financing.

FHA: For a chapter 7 Bankruptcy it is 2 years and 1 year for a chapter 13, before a buyer can repurchase again using FHA financing. Or, see above for how a buyer can qualify again after just 1 year if they experienced an economic event.

VA: For a chapter 7 Bankruptcy it is 2 years, and 1 year for a chapter 13 bankruptcy, before a buyer can repurchase again using VA financing.

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If you have additional questions about purchasing a home after Bankruptcy, call The Go To Guys at 770.924.1111.

Also, for more information, see our blog:

http://mortgagesolutionsofgeorgia.net/…/how-to-buy-a-home-…/

10 Essential Tips for Homebuyers

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1.Get a Home Inspection
Get a home inspection to evaluate the safety and overall condition of your new home, even if it appears flawless.

2.Get Pre-approved for a Loan
Before you start house hunting, get pre-approved for a mortgage loan.

3.Communicate Through Your Agent
When you want to ask or tell the seller something, always go through your real estate agent.

4.Put the Deal Into Writing
Get the seller to put every component of the deal and any verbal agreement into writing.

5.Include Contingencies With Offer
Include important contingencies, such as financing and property inspections, with your offer.

6.Develop a Wish List
Come up with a realistic wish list. Find out what you can afford in terms of house size, neighborhood and amenities.

7.Know Your Local Market
Know as much about the local market as you can. Use your agent’s CMA to learn about the selling price of comparable homes and the strength of the local real estate market.

8.Prioritize!
Decide what’s most important to you before the negotiation, so you know what parts of your offer you’re most comfortable giving up.

9.Keep Other Houses in Mind
When you begin negotiating on a specific property, know of other houses you’d be interested in buying. You don’t want to be so desperate to buy a certain house that you give in to whatever the seller wants.

10. Scope out Neighborhoods, Neighbors
Talk to neighbors to get the inside scoop on what it’s like to live in the neighborhoods of homes you are interested in. While doing so, gauge if you would like to live next to these people for the foreseeable future.

Just got engaged?

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Did you know that FHA allows couples to set up a “Bridal Registry Account” if they are planning on getting married soon and want to accumulate funds for their down payment to buy a home? This is a great way for “married-to-be” couples to come up with their down payment to buy a home.

Just like registering at Target or Pottery Barn, the FHA Bridal Registry program allows you to register a down payment account. Then, your friends and family are able to make gift payments into an interest bearing account on your behalf.

Not only can your gifts earn interest, but they can be used as a down payment towards an FHA Loan.

Here’s how it works:
-Open a savings account at your bank prior to the wedding.
-Give Friends and Family the banking information where the gifts will be deposited.
-The gift funds can go towards the FHA required 3.5% down payment.
-There is no requirement that you be married prior to closing on your new home.

One last advantage is that there are NO gift letters or other documentation required other than proof of your savings account named “bridal registry account.” It’s that simple.

Call us today so we can get you preapproved for your FHA loan 770.924.1111.

Buying a home AFTER Bankruptcy….

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Declaring Chapter 7 or Chapter 13 bankruptcy is often devastating and can turn your home buying plans upside down. Most home loan applicants think that if they have had a Bankruptcy in the past that they can never buy a home in the future and this is simply not the case. In fact, more people have prior Bankruptcies than what you might think. Filing for a Bankruptcy may be a low point in your life, but with proper preparation, patience and financial planning, you might be able to purchase a home sooner than expected. If you have had a Bankruptcy and want to purchase a home, here are the steps you need to take to get yourself in a position to purchase.

Discharge and Organize:
First things first: The bankruptcy must be discharged. If you are still in the process, it will be difficult to get a mortgage lender will speak to you.

Once your bankruptcy is discharged, organize and scrutinize your credit report. If there are debts that have been paid back but still appear on your report, contact the credit agency and have them corrected. While you’re at it, check for other mistakes on your credit report. You are entitled to one free credit report from each of the big three credit rating agencies each year—Equifax, Experian and TransUnion. If there is an error, dispute it online via the particular credit agency’s website.

Use Secured Credit Cards:
The fastest way to start rebuilding your credit score after a bankruptcy is to prove to creditors and other lenders that you can be trusted to pay back the money you owe them. You can do this by opening the right kinds of credit and managing it well.

A great place to start rebuilding your credit is by obtaining a secured credit card. A secured credit card gives you credit limited to the amount you have on deposit with the issuing bank. So, if you have $20 to $500 to place in an account with the issuing bank, then the bank will limit your credit each month to the amount of that deposit.

More Tips to Remember While Building Credit…..
Use only a small portion of your credit.
Don’t max out your credit cards and don’t apply for too much credit at one time.
Move slowly and build up your credit with on-time or even early payments.
At the end of every month, pay enough on your credit card to drop the balance down to $10.

-Pay all your bills on time and save money.
-Stay at the same job for a good length of time.
-Remove any outstanding tax liens.

Wait at Least Two Years:
Here’s where you will need patience: You should wait at least 24 months after your bankruptcy is discharged to apply for a mortgage. You may be able to get a mortgage sooner but the terms, like interest rates, won’t be as attractive as they would be if you waited two years. Since you might be paying that mortgage interest for up to 30 years, you will save money if you wait long enough after the discharge to get a good interest rate.

Finally Applying For a Mortgage:
After the two-year period, make sure you are fully prepared to apply for a loan. Your lender will want you to meet certain criteria before agreeing to lend you money: A good debt-to-income ratio, stability and time on the job. Money in the bank and no bounced checks help tremendously, of course. Any retirement plans or 401(k) assets makes your credit look good as well.

If you are seeking a home loan in the State of Georgia and would like to talk to a Loan officer about your particular situation, please call us at 770-924-1111

The VA Loan….4 reasons why it is the best.

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If you are a Veteran of one of the great military institutions and have served enough time to earn your Certificate of Eligibility, a VA home loan is most likely right for you! Here is an interesting fact, although some ill-advised experts will contend that 100% financing or low down payment programs led to the housing crisis, did you know that the 100% VA loan has the lowest rate of loan default out of any loan product on the market? The VA loan is the best financing product on the market, here are 4 reasons why:

100% Financing.
The VA loan entitles eligible Veterans to receive no down payment 100% financing on their home loans. This allows the Veteran to retain their personal savings making them better equipped to deal with life’s little emergencies that most likely will occur down the road. After all, life happens right?

NO Monthly Mortgage Insurance.
With most loan products, if you won’t put down 20% you must pay monthly mortgage insurance on your loan which is included in your monthly mortgage payment. Most all government backed loans such as FHA or USDA have required monthly mortgage insurance, but not VA loans. This increases the affordability of a home that the Veteran chooses, making it easier for them to maintain on time payments to the lender.

Flexible, Make Sense Underwriting Standards.
The VA has established make sense underwriting guidelines giving Veterans additional leeway when it comes to credit issues. They have the shortest seasoning guidelines on foreclosures, short sales, and Bankruptcy’s of any government backed loan. With that being said, the Veteran still must meet minimum credit standards established by the VA and the mortgage lender. Just because a Veteran has his/her Certificate of Eligibility is not an automatic loan approval. However working with a Loan Officer who has an extensive knowledge of the VA guidelines can be the difference between a loan approval and a loan denial. Although the VA has their own underwriting guidelines, not all VA Lenders have the same guidelines and you will find that credit score requirement vary greatly from lender to lender.

Low Rates
The VA does not establish mortgage rates or actually lend any money themselves to make a mortgage loan, rather mortgage rates are established by each individual lender. However, VA loan rates are some of the most competitive rates in the business.

If you are a Veteran and would like to explore your options to purchase a home using your VA Entitlement, we would love the opportunity to earn your business. Please call 770-924-1111 for a FREE, no obligation credit consultation.

Your Monthly Mortgage Payment

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When you own a home, the responsibility goes deeper than just making monthly principal + interest payments to the bank. Real estate taxes and homeowners insurance are due, too.

Principal and interest payments are typically due monthly to your lender; real estate taxes are due to your local taxing authority; and homeowners insurance is due to your insurer.

Depending on how you manage these four parts, you may get a lower rate.

What Is PITI?
When a mortgage lender is trying to determine your ability to repay, one area at which it looks is your total monthly housing payment.

Your total monthly housing is calculated as follows:
•Your monthly mortgage principal payment
•Your monthly mortgage interest payment
•Your annual real estate tax bill, pro-rated to a monthly figure
•Your annual homeowners insurance bill, pro-rated to a monthly figure

Collectively, these elements — principal, interest, taxes, insurance — are known as PITI.
PITI can vary from day-to-day, and from home-to-home. This is because mortgage rates change daily, which change a home’s principal + interest payment, and because every home’s tax bill and insurance bill are different.

Many mortgage programs such as the FHA Streamline Refinance and various VA home loans require monthly pro-rated tax and insurance bills to be included within the monthly mortgage payment, a loan trait known as “escrowing” taxes and insurance.

Find Your Monthly Escrow Payment
Escrows are a part of your mortgage payment and you’ll want to know your obligation. It’s best to use a calculator because, although the math is simple, you want to make sure you get it right.

First, find your home’s real estate tax bill(s), noting that in some areas, you may receive statements from multiple different taxing authorities. Find the sum of these statements and add to it your annual hazard insurance premium.

If you are a home buyer and don’t know what your hazard insurance premium will be, estimate 1% of the purchase price. This will yield an estimate which is likely larger than your actual premium, but when building a budget, it’s often better to estimate on the high-side.
Next, divide your sum by the 12 months in a year.

These monies are paid along with the mortgage payment’s principal + interest portion.

Call your favorite Go To Guys for any questions regarding your payment or escrow! 770.924.1111

What to do with your home during divorce….

Getting out of a marriage is hard and life changing, but getting out of a mortgage (and the marital home) can be even harder. After years of co-signed loans and joint finances, separating yourselves will require a lot of patience.

Rule #1….Keep up with your bills! Seriously.
With everything going on, it’s easy for monthly mortgage payments to fall through the cracks, especially if you don’t plan on staying in the house. But in order to buy again after the divorce, it’s important to keep your credit score good, and missing payments while your name is still on the mortgage isn’t going to help.

Rule #2….Have an agreement in place of who will pay what.
This means more than just paying your mortgage. Any late bills can hurt your credit score. So make sure you have an agreement in place about who pays what.

Rule #3….Have the discussion.
If you and your spouse can have a good discussion about the house, it’s best to decide very early if you will sell or if one of you will stay. You could both stay in the house, at least until it sells and you can split the equity. However, in most cases that is impossible for obvious reasons.

If you jointly decide that one spouse will keep the house the most important factor will be whether or not one of you can afford the house on your own. In order to remove one spouse from the mortgage, you actually need to refinance, or replace your existing loan with a new one.

That means that the spouse keeping the house will need to be able to qualify on his or her own–and then keep up with the payments, with or without alimony.

Call us today with questions about what to do during this difficult time! We are here to help! 770.924.1111