North Atlanta Mortgage Pre-qualification And Pre-Approval

North Atlanta Mortgage Pre-qualification And Pre-Approval

Many buyers apply for a loan and obtain approval before they find the home they want to buy. Why?

Pre-qualifying will help you in the following ways:
1. Generally, interest rates are locked in for a set period of time.
2. You will know in advance exactly what your payments will be on offers you choose to make.
3. You wont' waste time considering homes you cannot afford.

Pre-approval will help you in the following ways:
1. A seller may choose to make concessions if they know that your financing is secure. You are like a cash buyer, and this may make your offer more competitive.
2. You can select the best loan package without being under pressure.

How Much Home Can You Afford?

There are three key factors to consider:
1. The downpayment
2. Your ability for a mortgage
3. The closing costs associated with your transaction

Down Payment Requirements

Most loans require a down payment of 3.5% to 5.0% depending on the type and terms of the loan. If you are able to come up with a 20% to 25% down payment, you may be eligible to take advantage of special fast track programs and possible elimination mortgage insurance.

Closing Costs

You will be required to pay fees for loan processing and other closing costs. These fees must be paid in full at the final settlement, unless you are able to include them in your financing. Typically, total
 closing costs will range form 2% to 5% of your mortgage loan.

Qualifying for the Mortgage

Most lenders require that your monthly payment range from 25% to 28% of your gross monthly income. Your mortgage payment to the lender includes the following items:
1. the principal on the loan (P)
2. the interest on the loan (I)
3. property taxes (T)
4. homeowners insurance (I)

Your total PITI and all debts (from installments to revolving charge accounts) should range from 33% to 38% of your gross monthly income.

These key factors determine your ability to secure a home loan:
1. credit report
2. assets
3. income
4. property value

For more information on Financing and Mortgages and Relocating to North Atlanta, Georgia click HERE.

Now that your are ready to purchase your North Atlanta home, contact your North Atlanta Luxury real estate team - The Mary Ellen Vanaken Team of Keller Williams. 5780 Windward Parkway, Suite 100, Alpharetta GA 30005 www.northatlantaluxury.com

North Atlanta Mortgage Pre-qualification And Pre-Approval

Underwater But Want To Buy A New Home?

Underwater But Want To Buy A New Home?

Underwater but want to buy a new home? So you bought a house in 2006, it lost 20-40 % of its value....but, today you could break even, hopefully......you want to buy a new home, but don't really have any equity, what should you do?  You're not too confident in the housing market, but you know rates are great?? The real question should be......What would you pay today to put income in your pocket and a roof over your head for the rest of your life?

Today you have a once in a lifetime opportunity to buy a new home, keep your old house and own them both in 15 years! What would your life look like if you owned two homes in 15 years? You could use the income from one to live in the other, have a roof over your head for life and have a retirement income! Act now....this opportunity will go away within 1-2 years max.

Interest Rates are going up! We have been at a 100 year low and you won't be able to create wealth like this ever again in your lifetime!

That's right, when rates are back to 6.5-7 % you will not qualify to keep your old house and buy another and you might be lucky to even buy one home on a 30 year mortgage! let alone a 15 year mortgage.

The choice is yours....Option One:
Stay put...be conservative wait to see what is going to happen with the market. Keep your "old" house, hunker down....wait and see if rates really will go up?

The smart choice...Option Two:
You purchased your existing house in 2006, paid $255,000 it went up, then down, then down some more, now it is back up to a little less than you owe. Why sell?......keep it, rent it for the monthly payment....at 5.5% your payment is $1636 and fair market rent should be at least that. Pay $600 a month extra in addition to rent and you own it in 15 years!

Your new home is $300,000. Instead of doing a 30 year mortgage at 4.25 with a payment of $2026, do a 15 year loan at 3.5% and pay an extra $695 per month!

Recap......for $2,600 more per month over 15 years, you can own both houses, get income of $2,000 per month for the rest of your life and own your home free and clear.....with the leverage of reverse mortgages, you could have $4,000-$5,000 per month with no house payment for the next 15-20 years!

If you have been wrestling with yourself, your spouse, your parents or relatives...
BUY NOW!  and you will forever be a genius.

For more information on buying a new home, contact The Mary Ellen Vanaken Team 678.866.1935 or to search for the home that is just right for you click here.

Underwater but want to buy a new home?