Atlanta Housing Source

For many people looking to buy a home, the financial part of the process is intimidating and confusing. Naturally, you’ve been reading up on home loans. There’s a lot of information to take in, but here are a few fundamental concepts to keep in mind when preparing your finances for buying a home:

Keep your finances stable

When looking for a home it’s smart to avoid making any major moves that alter your finances, such as buying a car or changing jobs. Banks appreciate a sense of stability in would-be homeowners.

Pay off debt

The amount of debt you have now affects your ability to take on additional debt of a home loan. Know your current debt level and work to lower it as much as possible between now and when you purchase a home.

Assess your credit score

For credit cards and other debt, be sure to make your payments on time to get good credit. Payment history is the most important factor in your credit score, accounting for about 35% of the total. Check with major credit bureaus to verify your score and fix any errors.

Know the loan types

The basic mortgage types are fixed-rate, adjustable-rate and hybrid. However, there are many types of loans available that suit a variety of financial situations. Ask about loan options that are right for you.

Get pre-approved

After you’re pre-approved for a home loan, you can narrow your search and target homes you can truly afford. Many home sellers select pre-approved buyers over those who are not pre-approved because they may feel more confident that the purchase will go through.

Your financial picture is a crucial part of the home purchase process. If you’d like to know more about home loans, please call or email any time.

Considering buying a home in Norcross, Buford, Suwanee, Sugar Hill, Dacula, Snellville, Grayson, Dukuth or anywhere in Georgia, then consider this:

Interest Rates Effective 5:00 PM Thursday September 9, 2010

4.375 % 30 Yr. Fixed

Georgia Dream First Mortgage & Georgia Dream First Mortgage combined with Georgia Dream Standard,

PEN or CHOICE Down Payment Assistance Loans

620 minimum credit score

New Higher Income Limits were Recently Announced:

1 Person Family: $ 40,250

2 Person Family: $ 46,000

3 Person Family: $ 51,750

4 Person Family: $ 57,450

5 Person Family: $ 62,050

Basic Program: $ 5,000 Down Payment provided as 2nd Mortgage with No payments, No Interest and No payback if borrower does not Sell or Refinance * (Call me for Restrictions)

Requires Borrower to provide a Min. of $ 500 for Down payment

REWARDS PROGRAM:

660 +, Provides HIGHER Income Limits than above, $ 1,000 Min. Down Payment, $ 5,000 Basic Program to $ 7,500

Brough to you by: Stuart Landman, Envoy Mortgage

Funds are now available for a VERY SHORT TIME!

If you have buyers interested in purchasing foreclosed properties now is the time. The Tax Credit rush is over and underwriting turn time has been reduced to five days.

* There must be a HQS Inspection on the property

* Buyer must receive 8 hours of face to face Home Buyer Education Counseling from a HUD approved counselor

* NSP Funds CANNOT be used for closing costs – so seller will need to contribute to closing costs for the buyer

* The home must be in an eligible area

* The property must be foreclosed and a REO owned by an eligible entity

* Borrower needs some “Skin in the Game” – at least $1500

* Repairs can be done after closing

NSP Loans must be approved by underwriting and an approval letter stating “Firm Commitment” issued no later than September 3, 2010.

Thanks you from: Amy Wilemon

What is going on with rates?

Former Federal Reserve Chairman Alan Greenspan wrote an op-ed piece in the Wall Street Journal titled

We had a great week for rates – I locked my clients. And good thing because rates are a little higher today.

Big evening on Capitol Hill last night… First, the Financial Reform Bill was finally reconciled between the House and Senate. The final draft includes a Consumer Financial Protection Agency, which will have the authority to police banks for mortgage lending and credit-card abuses. As you have probably been reading in our member benefit from IMMAAG, the Bill also proposes to end – or severely limit – the use of mortgage loans without documentation of income and assets.

There are also many new reforms put in place to reduce risks taken by large banks through derivatives and proprietary trading. The Bill is intended to avoid a repeat of the financial disaster that occurred during 2008 – 2009, but whether the Bill actually achieves this is not unanimous. The next step in the process is to have both the Senate and House vote on the final form of the Bill, then get it sent to the President for his signature. Stay tuned on this front.

Additionally – the extension of the Home Buyer Tax Credit through Sept 30th did not get passed last night. It was part of the larger Jobs Bill, which included State aid and an extension of unemployment benefits for people out of work more than six months – and would have added $33B to the deficit. The White House said that the President will continue to try and move the Bill through Congress, but should this Bill ultimately not get passed, around 200,000 people will fall off the Emergency Claims Benefit each week, rejoining the formal workforce, and therefore the ranks of the unemployed. Additionally, without the State aid, many already financially strapped states – who are required to balance their budget each year – will be forced to remove many government jobs.

As always, be on guard in this volatile trading environment.

Thank you for this contribution by:
Amy Wilemon
Mortgage Loan Officer
America Home Key
Phone: 404-601-4177
Cell: 404-368-4031
MLO#: 226390
awilemon@americahomekey.com