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

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

203k/Rehab Loans….

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At Mortgage Solutions of Georgia, we understand that just because a home needs some repairs or remodeling, doesn’t mean it’s not the right home for you. With that in mind, we have worked hard over the years to become well versed in the FHA 203K rehabilitation home loan program. This is a federally insured loan program that allows a client to purchase a home that requires repairs or remodeling or refinancing a home they already own to complete repairs as well.

The 203K loan allows a client the ability to purchase and have escrows funds for repairs in one loan instead of being required to finance them separately. There are certain guidelines and restriction in place that make it advantageous to work with a mortgage company that has the experience to help you avoid mistakes that can cause delays or even a denial on this type of loan.

Basically, a home improvement loan, the 203K program is HUD’s program to help home owners revitalize properties that may be distressed or in need of repair. There are two basic options available through this program, a “full” 203K loan or the streamline version. The “full” 203K loan requires the involvement of not only a licensed general contractor, but also a certified 203K consultant.

These loans are required if repair costs are over $35,000 or if the repairs to the home are considered structural. The streamline version of this loan does not require the consultant, but does normally limit total repair costs to $35,000. Not offered by all lenders, the 203K program has become very popular due to the heavy amount of foreclosed properties available in today’s housing market. Many times these homes are not left in ideal shape or have been sitting vacant for a prolong period of time. Most other loan types will require a property to meet certain standards of condition prior to closing of the loan.

The 203K loan offers clients the ability to close prior to the repairs being completed and have those repair costs set aside in an escrow account to be dispersed to the general contractor completing the repairs once they are finished. 203K loans are restricted to primary residences only.

Benefits of Using a 203K Loan to Purchase a Home
-Purchase a home in need of repairs and close prior to repairs being completed
-Have the repair costs included in loan at low rates
-Have ability to put down 3.5% down payment using FHA insurance
-Seller is able to pay 6% in closing costs
-Up to 90 days allowed to complete repairs
-10% contingency built into escrow amount for unforeseen additional repair costs
-Ability to qualify with less than perfect credit due to FHA insurance backing.

Benefits to refinancing with a 203K loan
-Use the 203K loan for repairs or for updates
-Work with the general contractor you choose
-Structure the loan based on the appraised value after repairs complete
-Refinance up to 97.75% LTV
-Have the repair costs included in the loan at low rates
-Qualify with less than perfect credit

A 203K loan can obviously be a great tool to use when looking to buy a home that may not be in perfect condition. This loan requires a knowledgeable loan officer that can take a client from start to finish in a timely manner.

Contact us today to get started on your rehabilitation loan today. Mortgage Solutions of Georgia, your 203K loan experts! 770.924.1111

4 Things that Slow Down Your Loan Process…..

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1.Incomplete Documentation
In today’s mortgage world, documentation is absolutely critical. Your loan can either be really easy and close in 2 weeks, or really difficult and take much longer to close. Often times the difference is how complete and thorough your documentation is. When your Loan Officer asks for bank statements, sending in all pages is critical as often times bank statement will have numbered pages, if we are missing a page then the underwriter is going to ask for it, even if it’s a completely blank page.

2.Cash Deposits or Transfers
Cash deposits are the arch nemeses to underwriters. Tracking cash is nearly impossible and if the underwriter sees a large cash deposit with no documentation often times we won’t be able to give you credit for this deposit and the money will be backed out of your available assets. Transferring monies from account to account can also present a problem for underwriters. When the underwriter sees a transfer into your account from another account, statements for the other account must be provided in order to track where the transfer came from.

3.Dragging your Feet to Obtain Documents
A sales contract is a legally binding agreement and certain timelines must be met. When documentation is asked for, time is of the essence and as a homebuyer, you must provide this documentation in the fastest possible time frame in order to stay on track for your closing.

4.Sense of Entitlement
Loan officers have this issue with applicants who make $25,000 a year or one million a year. Buyers don’t understand why so much documentation is required for them to be approved for a mortgage loan, but that’s the environment we are in and will be in for the foreseeable future, so get used to it. Here at Mortgage Solutions, we will never ask you for a document that we can either find ourselves, or really don’t need. So if your Loan Officer asks for a document, its best to simply comply rather than having a discussion about why it’s needed.

Bottom line, here at Mortgage Solutions we know how to close mortgage loans, after all, it’s what we do and have been doing for well over a decade now. We have streamlined the mortgage process to get you closed in the most efficient manner possible. We look forward to working with you in the future, if you are seeking a mortgage loan in 2015, get it done right, call the The-Go-To-Guys today!770.924.1111

Words of Encouragement for your Dreams of Buying a Home in 2015!

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Do you have dreams and aspirations of owning your own home in 2015? Have you previously been turned down for a mortgage loan and want so desperately to have a home to call your own? Then it’s time to make 2015 a year to remember!

We have all been there, heck, I have been there myself. Well over a decade ago after graduating college I had the worst credit in America! No one had ever taught me the importance of credit, how to manage it, and how having good credit would positively impact me for the rest of my life. I am not proud of the pathetic credit score I had back then, but I am proud of where I am at today rocking a credit score in the high 700’s!

The reality of it all is that any credit can be fixed. You just have to know what to do and what not to do. There are tons of valuable resources listed on our website that can help you become an educated consumer. And because we have been there ourselves, we welcome the opportunity to speak to you regarding your personal situation and work up a custom action plan to improve your credit. We can teach you not only what to do, but educate you on why you need to do it. And most importantly of all, we are a no judgment zone! We are here to help you accomplish your goal of home ownership in 2015.

Every day in our office we turn potential home buyers who were previously denied for their mortgage loan into happy home buyers. Sometimes the process is fast and easy, and other times it can take the better part of a year, but you have to start somewhere, and today is the day, now is the time. No more excuses, if you are a serious potential homebuyer and want a home of your own by the end of 2015, calling us today or applying online is the first step in your success!

770.924.1111

How give and receive a gifted down payment for your home…

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Receiving a down payment gift for the purchase of your next home? You’re not alone. Many U.S. home buyers do it.
Mortgage lenders allow cash gifts for down payment on a huge array of loan programs including FHA loans, VA loans, USDA loans, and conventional loans.

However, if you’re getting a cash gift for down payment, you’ll want to make sure that you “receive” your cash gift properly.
There’s a specific way to receive money for a down payment. Should you receive your gift improperly, your loan could be denied.

Step 1: What the Giver of the Gift Needs To Do
With your mortgage down payment gift letter written, you’ll want to make sure you don’t violate the rules of “taking a gift”. In order to do that, make sure to keep an extra-strong paper trail for the money being gifted.

If you are the person who is gifting funds to the buyer, for example, and you sell your personal stock holding as part of the down payment gift process, you will want to make sure that you document the sale of your stock as well as the transfer of funds from your brokerage account into the account from which you’re making the gift. Do not make the transfer without a proper paper trail.

Next, you’ll want to write a check to the home buyer for the exact dollar amount specified in the gift letter you’ve written. Photocopy the check. Keep one copy for your records and give one copy to the buyer — the lender will want to see it as part of the process.
Note that writing a check is will require more steps and will require more effort than simply wiring funds to the buyer. Be okay with these extra steps. It’s simpler for a lender to document and track a personal check than it is to track a wire; and it’s good to make things simple for the bank.

Step 2: What the Receiver of the Gift Needs To Do
Now that the gifter has handed, in the form of a check, a down payment gift to the buyer, the following steps are required.
First, with the gift check in hand, the buyer should physically walk into your to make the deposit in-person. Do not deposit the check online using an iPhone or Android app; or at an ATM machine.

In addition, into whichever bank account you deposit your gift money, make sure it’s the same bank account from which all of your money at closing will be drawn. You do not want to bring money to closing from multiple savings accounts. This, too, can make things difficult on a bank and the goal is to keep things simple.

When you get to your branch, do the following:
1.Deposit the gift funds into a bank account
2.End your transaction
3.Collect a receipt for your deposit

Under no circumstances whatsoever should you “co-mingle” your gift deposit with other monies, nor with other gifts. The amount specified on your teller receipt should match exactly the dollar amount on the certified down payment gift letter. If the amount is off by even a penny, the lender will likely reject your letter and the funds that came with it.

Note that if you are receiving multiple cash gifts for down payment, you should follow this process for each gift independently. Again, do not co-mingle your gifts. Be guided by your gift letter.

Step 3: Complete the Gift Letter
When you accept a down payment gift, remember that there’s a right way and a wrong way to do it. For example, you cannot randomly deposit your cash gift into a bank account. Doing so will get your loan denied.
The Gift Letter can be obtained by your Mortgage Lender.

Call The Go To Guys for questions regarding any of the above information. We are here to help! 770.924.1111

Just apply for a mortgage? Avoid these 8 deadly sins….

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Here are 8 things you should absolutely not do between your date of application and your closing date. Any one of them could force your loan to fall apart.

1.Don’t buy a new car or trade-up to a bigger lease

2.Don’t quit your job to change industries or start a new company

3.Don’t switch from a salaried job to a heavily-commissioned job

4.Don’t transfer large sums of money between bank accounts

5.Don’t forget to pay your bills — even the ones in dispute

6.Don’t open new credit cards — even if you’re getting 20% off

7.Don’t accept a cash gift without filing the proper “gift” paperwork

8.Don’t make random, undocumented deposits into your bank account

And that’s it.

For example, if your car lease is expiring, you have to do what you have to do. Renew the lease. Before doing it, though, check with your loan officer — spreading your lease over 60 or 72 months may be better for your debt-to-income (DTI) ratio.
The same goes for accepting cash gifts from parents.

There’s a right way and a wrong way to accept a cash gift for a purchase and if you do it the “wrong way”, your lender may disallow the gift and deny the loan.

These are just 8 things that could sabotage your loan. There are more, of course, and Mortgage Solutions of Georgia will help you identify them.

And that’s it.

Call us if you have any questions about the above “Deadly Sins”! 770.924.1111