Years ago it was so easy to get a home mortgage! Anyone with a steady job and decent credit could pretty much pick and choose when it came to any home in their price range. However, with the recent collapse of the financial industry as we knew it, and the downfall of the real estate market, those days are gone forever.
Of course, lenders are not turning away everyone for a home mortgages, but they are turning away people who would have been approved overnight only two years ago. Today you need miles and miles of documentation, paperwork, forms, statements, IDs and a credit history straight from a fiction novel, and forget about getting a ‘no doc’ mortgage!
Also seemingly extinct now is to have your lender pay off your credit cards in order to improve your income to debt ratio. This was almost de rigueur not long ago. Now, forget about! If you owe too much, you just don’t get approved ‘ it’s as easy as that.
If a 20% down payment will be an issue, you might find yourself priced completely out of the market. Even though housing prices have fallen dramatically over the past few years, your median priced home in most markets is still hovering around $200,000, bringing your down payment alone to $40,000. This doesn’t even take into consideration closing costs and residual cash the lender expects you to keep on hand for emergencies.
If you can show them you have excellent credit (most banks want to see something well over 800), steady income, and plenty of money in the bank after your down payment and closing costs, you might be in luck. Each lender might have different requirements and some even have different definitions. Don’t assume anything; make sure you know what you’re dealing with before filling out the actual application.
Also, make certain you can provide every piece of substantiating documentation they can ask for. At least a year’s worth of financial documents are a must, and if you have to pay for duplicates to be mailed out, do it. Get your tax returns together, recent pay stubs, and even copies of your IDs. Be prepared for some odd questions, too, such as ‘where did this $2,627 come from?’ because if it looks suspicious, that’s just one more reason for them to turn you down.
Interview lenders like they interview you. It’s a two way street and they will be be happy to answer questions. Make sure you are dealing with a lender that has a good reputation. Before giving him any type of application fee or personal information, get a good understanding of what they look for in a new loan package.
When you are looking for a Georgia loan mortgage, you might be overwhelmed. It’s ok! Just take it slow with any decisions regarding your mortgage loan.
Tags: Georgia bank mortgage, Georgia equity home mortgage, Georgia equity mortgage, Georgia fixed mortgage, Georgia home equity loan, Real Estate