Loan Approval vs. Loan Pre-Approval

Now that you have created your list of amenities you want in your new home, are you ready to start searching?  Well, not quite. You will need to know what price range you can afford. There are two ways to go about this: You can either get pre-qualified, or pre-approved for a mortgage. Whichever you choose, you will need to contact a dependable mortgage company. At Family Mortgage of Georgia, we offer fast, FREE pre-approvals.

 

You ...

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Real Estate Agents | What Are Their Obligations

Real Estate Agents | What Are Their Obligations

About Real Estate Agency

One of the most common misconceptions that is shared by a large number of home buyers is that when working with a Real Estate Agent, he or she will “automatically” represent you as a buyer. As we will discuss, unless this is specifically disclosed in writing, in all probability the Agent will be representing theseller.

The traditional relationship (probably going back to when the first thatched hut was sold by someone other ...

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Using An Realtor vs. Finding A Home On Your Own

Using An Realtor vs. Finding A Home On Your Own

Advantages of Using a Real Estate Agent

When you start to consider whether to purchase your first home, one of the first questions that comes to mind is, should I use a Real Estate Agent? Although it is certainly possible to do it on your own, there are several more compelling reasons to use an agent than to “go it alone”. There is a misconception among many first time home buyers that by using a Real Estate ...

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Common Loan Qualification Mistakes

Common Loan Qualification Mistakes

Once your loan package has been sent to the lender, there are a number of things you should avoid doing that will change your financial picture. Remember, the lender is looking for stability and consistency. If you want the best interest rate, keep that in mind. Here are a few things to consider:

Large Deposits

The lender is looking to see what your source of down payment is.
Your lender will most likely ask you to ...

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Fixed Rate Loans Vs. Adjustable Rate Loans

Fixed Rate Loans

These loans are fixed for either a 10, 15, 20, 30 or now even 40 year period. They are amortized over the period of time you select, so the shorter the period the larger the monthly payment will be. Also, the shorter the time period you select the more significant the interest savings will be over the term of the loan. But one note of caution is that you should make sure that you ...

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Interest Only Loans

Interest Only Loans

With an Interest-Only loan, home buyers are able to choose their monthly payment and can do one of a few things: They can qualify for a more home, keep more of their cash in reserve or to save for retirement, pay down high-interest debt, or make home improvements.

Interest-Only loans offer you:

  • Possibility for lower monthly payments: for the first 10 years of the mortgage you can choose to pay interest only – plus any portion of the principal that you would ...
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Income and Assets | What You Need to Know

Can I Use All of My Income?

There are very specific guidelines that must be followed in determining what income is allowable in qualifying for a home loan. For example there are a few situations that prevent you from utilizing your income.

The first is if you have been self-employed for less than two years. Generally speaking you must be able to document that your business has been established for at least two years and have ...

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Debt to Income Ratios

There are two ratios that a lender will be interested in; 1) your housing ratio, also known as your “front end ratio,” and 2) your debt-to-income ratio, also known as your “back end ratio.”

The housing ratio is your gross monthly income (your income before taxes are deducted) divided by your total housing payment. Your total housing payment includes principal, interest, taxes and insurance.

Your debt-to-income ratio is calculated the same as the housing ratio, except all revolving and installment debt is ...

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Automated Underwriting and The Home Mortgage Process

If you have relatively good credit, today’s automated underwriting systems provide a list of only the documentation that is necessary to satisfy the lender. The way it works is that once the lender has your application and has pulled your credit, the file is uploaded to one of three locations, Fannie Mae, Freddie Mac or possibly directly to one of hundreds of lenders. “Fannie and Freddie” are quasi governmental agencies that set the guidelines that dictate whether a ...

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Home Down Payment Options

If you believe that you need a good chunk of change to purchase a home, your not alone. The vast majority of first time home buyers have little money to work with and consequently do not believe they are in a position to buy a home. Either that, or credit issues prevent you from investigating the possibilities. But times have changed.

A standard conventional loan will always require that the buyer contribute a ...

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