Mortgage Lender AtlantaUncategorized | Mortgage Lender Atlanta

Remembering September 11

Jim Duffy — Sun, 11 Sep 2011 01:08:52 +0000

I wanted to give a rate update today, but the real importance is to remember September 11, on this 10 year anniversary.

I hope you and your family, like mine, spend time remembering the tragedy of 9/11, and remembering the heroes of that day.

Georgia USDA Rural Housing Loans Getting Less Expensive

Jim Duffy — Wed, 07 Sep 2011 16:07:22 +0000

If you are looking for a home in rural Georgia – meaning on the outskirts of the major cities in Georgia – then I have some good news for you.

With USDA Rural housing loans in Georgia, there was no monthly mortgage insurance payment. Instead, like a VA Loan, there was a funding fee, which is a percentage of the loan amount that is added to the loan, and financed for the 30 year term.

Problem is, about a year ago the funding fee for USDA loans rose to 3.5%. That was $3500 added for every $100K in loan amount. Stiff.

Well, after October first the funding fee is changing, and will be a little more like Georgia FHA loans, with a portion of the fee being added to the loan amount, and a portion being paid annually.

Specifically, the up front fee will decrease from 3.5% of the loan amount to 2.0%. That is good news. And while it is no fun paying a monthly portion with your mortgage payment, it will not be a high fee. The annual portion is just .30% of the loan amount, divided by 12 months. In other words, it will cost $300/year for each $100,000 borrowed.

That is much cheaper than FHA monthly mortgage insurance.

And, USDA rural housing loans still offer 100% financing. No down payment needed!

Remember, I am a direct lender for Georgia USDA rural housing loans. If you are in the market for a home that is not in the metro city areas, then you should consider the rural housing loan.

And I would be honored to do that loan for you. As always, just call 1-800-MY-LOANS (1-800-695-6267), or simply fill out an initial application here, by clicking the “Apply Now” button.

Atlanta Jumbo Mortgages – Creative Ways to do Large Loans

Jim Duffy — Fri, 15 Jul 2011 20:53:56 +0000

If you have a large loan on your home; or you are thinking of buying a large home the will require a Georgia jumbo mortgage, then you will enjoy this web event that John Adams and I did recently, which we entitled:

Creative Uses for Large Loans

JUMBO MONEY: Creative Uses for Large Loans from John Adams on Vimeo.

And, of course, contact me if I can help with preparing loan options for your large loan: 1-800-MY-LOANS

Rents Ready to Rise in Georgia

Jim Duffy — Wed, 13 Apr 2011 19:35:38 +0000

Rents have been obstinately stable for the past 10 years. Normally rising with inflation, the easy money available in the housing boom to buy and the overbuilt rental units made rents in metro Atlanta remain stubbornly stable.

All that looks about to change.

Several reports out in the past couple weeks show that rents are set to rise, and as much as 15% over the next 18 months. That will pretty much correct the stagnant rents of the past decade in a very short time.

If you are in a position to purchase, as opposed to renting, then now would be a good time. Especially, because Atlanta mortgage rates are set to rise in the near term. Let me know if I can help.

Save Your Rent; Buy a Home

Jim Duffy — Thu, 10 Feb 2011 16:53:46 +0000

“Home prices continue their downward spiral” – shouted one newscaster with nervous excitement.

“Mortgage Rates rise again this week…”, stated another newscast.

Uncertainty. That’s what all the newscasters convey about housing.

So, let’s cut through a bit of the uncertainty, and specifically for the would-be first time home buyer in the Atlanta metro market.

It is true to home prices seem to be dropping or ready for another drop of a certain percent. But not all homes. They say all real estate is local, which is true, but it is also segmented according to price points.

The lower end of the market – that which most first time home buyers look at – has stabilized in nearly all Atlanta metro counties and neighborhoods. Last Fall we were beginning to see the prices in that first time home buyer range rise somewhat. Now, over the Winter months, they have plateaued again; and at very affordable levels. But, now mortgage rates are beginning to rise as well. And that further affects affordability of homes.

Let’s take the average rent that an individual or newly married couple pays in Atlanta. Without begin scientific, but rather based on my experience, most rents range from $800-$1200 per month in metro Atlanta.

So, let’s go with the high end, say a young couple with one small child living in a 2 bedroom apartment paying $1200/mo in rent.

Now, the child is growing and they want both a good school district – thinking ahead – and a yard to play in in a safe neighborhood. That couple can buy a home for $160,000 with 3.5% down; or a Georgia HUD home for just $100 down payment, and this is what their payment would look like:

Yes, all in, their payment would be less than their current rent, even including taxes and insurance. And, assuming the couple makes a combined income of, say, $70,000 and were in the 25% income tax bracket, then the new payment minus the tax savings would be just $1,114/per month.

And, they got the yard and the pride of owning their own home.

Does this sound like you? Then perhaps this is the year to buy your own home. Call me, and I will run each of these numbers specifically for your circumstances.

Georgia Veterans Still Get the $8000 First Time Home Buyer Tax Credit

Jim Duffy — Wed, 09 Feb 2011 21:23:55 +0000

That’s right. It’s not too late for military Veterans in Georgia to buy a home and claim an $8000 tax credit. It is gone for all but active duty or retired military; but you can still claim this substantial tax credit.

What you have to do is have a binding contract to buy a home by April 30, 2011. And you need to close on the home by June 30, 2011. And, so long as you have not owned a home in the preceding 3 tax years, then you will get the $8000 tax credit.

Oh, well, now for the fine print. There are upper income limits of $125K for singles and $225K for married, filing jointly. Anything over that the credit gets phased out.

So, let’s get pre-approved, and specifically let’s look at a VA loan. It is a great loan with no monthly mortgage insurance and no down payment required. Why not take advantage of that? After all, you’ve earned it.

What Happens to Your Mortgage Application File?

Jim Duffy — Sun, 03 Oct 2010 15:37:35 +0000

When the average person applies for a mortgage loan, the butterflies take hold and palms grow sweaty. And the long and often silent wait begins to know whether the file will be approved and the loan will be given; or denied for some unforeseen reason.

This article’s goal is to take some of the mystery out of the loan process, by defining who touches that loan file, and when, in the process of getting you to the closing table.

The Loan Originator is the first line of contact, and often the principle point of contact in getting a mortgage loan. By internet, phone or in person a loan application is filled out. That originator will pull a credit report on you and normally verify a certain number of critical elements to approve your loan, such as your income, assets in the bank and the amount of time on the job. Other items certainly come into play, but these are the regulars. The loan originator should then present loan options that you qualify for, and educate you as to the positives and potential pitfalls of each option, helping you select the right loan for your short and long-term goals.

The Loan Processor then gets the file when all the critical data has been collected, and she will tighten up that file, verifying employment, tax information, income, etc; as well as ordering and reviewing the property information such as looking for clear title to the property and a satisfactory appraisal. The loan processor is also a ‘second’ set of eyes after the loan originator to check credit, income and assets to make sure they fit the loan guidelines that the originator and the borrower have opted for.

The Appraiser is the professional who travels to the property, measures the square footage and makes an informed opinion of the value of the property, based on the property condition as compared to comparable property sales in the near term in the surrounding area.

The Underwriter then receives the file, to offer an final review, and issue either an approval, suspension or denial. Now, if the loan originator and the loan processor have done their jobs satisfactorily, then loan denials should be exceedingly rare. The underwriter’s job is really two-fold: both to verify the information presented and approve a loan for the borrower, and to play defense for the company, looking for anything that the company making the loan could suffer from, and therefore reasons not to make that loan that might hurt the company. Think of the loan originator and processor as the offensive line; and the underwriter as the defensive back.

The Closer then receives the approved loan and prepares and sends the closing docs to the title company (or the real estate attorney, in the state of Georgia).

The Closing Attorney then receives the loan documents from the lender, and prepares the final Settlement Statement, with the finalized numbers and amounts from all parties involved in making the loan. It is the closing attorney that the borrower then sees and meets around the conference table in their office, normally. The attorney explains all the loan documents to the borrower and collects signatures, funds to close, etc.

So, there you have it. All the people who have a hand in the approval of the mortgage loan. Granted, it is a rather technical analysis of the process you may know only as the nerve-racking necessity that you have to subject yourself to in order to purchase your dream home.

And therein lies our greatest balancing act – performing all the technicals to a high level, while remembering with you that this is your dream home and you have entrusted us with the esteemed role of helping you achieve your dreams.

Humbly, we thank your for your confidence.

Bernanke Announces More MBS Buying = Lower Rates

Jim Duffy — Tue, 10 Aug 2010 21:35:55 +0000

Image via Wikipedia

Today the Federal Reserve announced that they would buy more Mortgage Backed Securities (MBS); those bonds that dictate the direction of interest rates.

And with that, bond investors jumped high and clicked their heels with joy…and mortgage rates fell.

Good news for Atlanta home buyers, for sure. Things just keep getting better for those looking to buy a home right now. Low prices, plenty of inventory, and now, officially, the lowest mortgage rates in history.

New Licensing Requirements for Georgia Loan Officers

Jim Duffy — Wed, 04 Aug 2010 15:15:07 +0000

Here is an interesting piece on the licensing requirements that I had to pass – but bank loan officers do not. I and my fellow non-bank loan officers had 20 hours of classroom work, then had to study for and pass a Georgia State test and a National Mortgage licensing exam, along with passing a criminal background check and a credit check.

What do you think about bank employees being exempt from all testing requirements? Comments are open below.

Strategies from a Top Short Sale Buyer Agent and a Lender

Jim Duffy — Sun, 25 Jul 2010 20:16:57 +0000

Short sales are all over the news these days, just behind the reports on the record number of foreclosures. And, a lot of homeowners are either severely under water on their mortgages - owing more than the home will sell for and do not have the funds to make up the difference – or are in economic woes themselves due to job loss or any number of other of life’s difficulties.

Yet, they do not want to just walk away, or turn in the keys. Simple honor prevents these homeowners from just walking away; so they turn to the relatively new phenomenon of the short sale. That is, the lender agrees to take less for the home than the mortgage balance on that home, as payment in full.

And that creates a potentially terrific buying opportunity to get a great deal on a home, and help out a homeowner in need.

Having been the lender on quite a number of short sale purchases over the past couple of years, I can offer some advice for a buyer who is considering putting an offer on a home that is offered as a short sale. And the very first piece of advice I would give is to choose your Realtor well. Sure, that goes for all real estate transactions. But with a short sale, it is vitally important.

You may not realize, but most real estate agents do not like to work with short sales. I sat down with one who does, Joshua Jarvis. In fact, Joshua successfully navigates the short sale process for buyers more than nearly any other agent in north metro Atlanta. And he sure had a lot of advice.

So, between the two of us, here are the top strategies to do when buying a short sale property:

Short sales take time and require patience: So make sure you choose an agent who is experienced in short sales and can therefore manage expectations along the long road.
Most banks will pay a maximum of 3% toward the seller closing costs; HUD will only pay 1% however. Plan accordingly for cash to close.
Most banks will only entertain a short sale on a property when the homeowner is 30 to 60 days behind on their mortgage.
Given that, it generally takes a minimum of 90 days from offer to closing. Again, patience will help this transaction succeed.
The due diligence time for inspections, etc, begins once the lender approves the short sale. No sense shelling out for inspectors until the lender gives the go-ahead.
And, possibly most important – get your loan approved early. There is nothing worse for all parties than going through the grueling process of getting a short sale approved, only to find that the buyer does not qualify for the mortgage. Don’t get pre-approved. Get fully approved, early.

So, with the right lender and the right agent, venture out with confidence and put an offer on a short sale property. With patience, you really could get the deal…of a lifetime.