Hiram GA real estate listings and homes for sale, home buying, home selling information – GA-Homes

Real Esate Blog

GETTING A HOME LOAN IN CURRENT MARKET

July 17th, 2008 12:28 AM

Is it harder to get a mortgage in the current market? Most definitely!! The days of easy credit have come to a screeching halt! Much more difficult...but certainly not impossible. Most people who "should" have gotten a loan in recent years still will be able to qualify now. Here are the major changes in loan qualification. Credit score will not have to be at least in the low to mid 600's where you could have been in the low to mid 500's before. Some down payment will have to be made from your "own" money. (Down payment assistance is still an option in some cases allowing for no money down on the part of the buyer.) Gifts from parents or others are being discouraged, but still allowed in certain circumstances. VA still requires no down payment and there are still a few specialized programs for little or no money down. The feds are trying to stop most all "down payment assistance" programs but have not succeeded as yet. Total debt can no longer be more than mid to upper 30 percent of your gross income, where in days past they allowed up to 45% of gross income to go for debt. I always tell my client they will be much happier and more secure if they hold their house payment to a weeks bring home pay. This will allow them to furnish that new home, take vacations, eat out at least once a week, etc. I try to be sure my clients do not end up house rich and cash poor. That's no fun at all. As your income rises, then you can afford a larger, nicer home. Don't push it to begin with and you will be happier and much more secure.

Posted by Phil Turner on July 17th, 2008 12:28 AMPost a Comment (0)

HOUSING BILL PASSES CONGRESS.....NOW WHAT??

July 31st, 2008 3:00 PM

Well, the massive housing bill has passed congress and the president will surely sign it into law. But what does it contain and what will it mean to the overall housing market?? Those questions may take some time to get answered fully. From what I know, it will keep the investors off the backs of Fannie Mae and Freddie Mac for at least 18 months. Guaranteed by the good 'ole USA taxpayers if they fail. I doubt they will. Next, it will give an estimated 500,000 troubled homeowners a chance to refinance into a goverment insured loan at a lower interest rate if they show they can handle the lower payments. Third, it will give first-time home buyers up to a $7500 tax credit. So it is good news for first-time buyers and it should slow the rising foreclosure rate and make more money available for all buyers of homes. The price tag is high but it does seem to be a move in the right direction for all except, perhaps, the taxpayers who will be out on the limb for billions if this does not work as planned. I'll have more as more details become available.

Posted by Phil Turner on July 31st, 2008 3:00 PMPost a Comment (0)

IS A "SHORT SALE" THE ANSWER FOR YOU?

July 28th, 2008 4:53 PM

Is a "short sale" the answer for you?? Exactly what is a "short sale"? Good questions for many sellers in this tough market. First of all, a "short sale" is when the mortgage holder on your home agrees to accept less than is owed on the mortgage, somtime forgiving the excess debt, so you can get free of your obligation. If a lender will agree to forgiving the shortfall, this route will have much less negative effect on your credit than a foreclosure. But a lender does not have to accept a short sale and many will not, forcing a foreclosure instead. In order to get a lender to accept a short sale, you will have to prove circumstances have caused you to be late or past due on your mortgage. Usually accepted reasons are, divorce, illness, or loss of job or income. If none of these exist then the lender will not likely accept anything short of the full amount owed. And you will have to PROVE one of more of these circumstances exist before they will even consider a short sale. Sorry, your word is simply not enough. Also required will be an appraisal showing the current value of your home, and most lenders will not accept a short sale for less than appraised value. All this can take considerable time and if you find a buyer, the buyer may not be willing to wait for this extended period of time. By the way, with some lenders, you must find a "qualified" buyer before you can even start the process. One thing you will need to watch out for in this situation is that all lenders who agree to accept a short sale may not be willing to let you off the hook for the shortfall. You could still end up owing the unpaid balance which will live on your credit till it is paid. If you decide to try this escape route be very careful and expect it to be a long drawn out procedure. But in some cases it just may be the answer to a problem.

Posted by Phil Turner on July 28th, 2008 4:53 PMPost a Comment (0)

MORTGAGE RATES ON THE RISE

July 24th, 2008 6:19 PM

WOW, after hitting a low of 5 1/8 to 5 1/2 rates have risen over 1/2 point or more to around 6 1/2% currently. Where is it going from here? I think they will float from the high 5's to the mid 6's over the short term. Bond rates are trending lower and this should keep mortgage rates low, but there is concern mounting over inflation and the Fed cutting short term rates to improve the market conditions. Plus the Fed is printing money like it is going out of style, which some think it is (dollar lower across the board). I still don't see the higher rates of years past but this is certainly a good time to buy a home just in case.

Posted by Phil Turner on July 24th, 2008 6:19 PMPost a Comment (0)

PROPERTY TAXES IN AREA COUNTIES

July 20th, 2008 1:42 PM

How do property taxes compare in my local area? And how important is that to the buyer? I just did a very simple survey of homes for sale in my 4 most active counties, not a scientific survey by any means, but should be indicative of what you might pay. Here are the result for a $150,000, 3 bedroom 2 bath home is each county. Lowest to highest.

Cherokee County: $1399 per year, about $116.58 per month

Douglas County: $1471 per year, about $122.58 per month

Cobb County: $1537 per year, about $128.08 per month

Paulding County: $1652 per year, about $137.66 per month

How important is the $21.08 difference per month to you? Paulding is the highest but you generally get a larger home on a larger lot. Cobb generally has the best school system, with Cherokee a close second among these four. Maybe not a huge difference but perhaps enough to sway some buyers. Of course taxes can go up, down or remain stationary. In fact Paulding was right there in the middle till 2007 when they had a substantial increase that left them with them with the highest taxes of this group. Cobb had the greatest variation among this group, ranging from $1212 to $1816 per year. All taxes are based on County assessment of property value and I believe Cobb only reassesses every 3 years, which is what the state requires, while Paulding does the reassessments every year. Just more info for you to ponder.

Posted by Phil Turner on July 20th, 2008 1:42 PMPost a Comment (0)

HOW TO AVOID "OVERPAYING" FOR YOUR NEW HOME

July 13th, 2008 1:29 PM

Since most buyers are realatively new to the home buying game you will need a reliable agent who knows home values. Be very careful in choosing this agent because most agents just want to get the deal done and really do not care what you pay for a home. They want to move on to another buyer and make another commission. Ask your agent for a complete report on the area where you new home is located, including active listings, expired listings, pending listings, withdrawn listings and sold listings. This should give you a ggod feel for the property. If you are thinking of paying more than the average of the area, that is a red flag, unless the home you like has some obvious extras. I supply all my clients with this info plus my own opinion as to the true value. Being an investor myself, I know when a home is a value and when it is overpriced or in danger of losing value. After I have fully informed my client, it is strickly up to them to listen to or ignore my advice. Either way I do not get upset if they choose to ignore my advice. I know buying a home is very individual and many are not looking for value, just a home that suits them perfectly.

Posted by Phil Turner on July 13th, 2008 1:29 PMPost a Comment (0)

TIME TO BUY!!.....FOR SOME.

July 9th, 2008 11:57 PM

Well, I'm calling it. Time to buy....for certain people! Who?? First of all, 1st time buyers. Yes, it is time for all first time buyers to get on board. I don't feel prices are going much lower if any. I think the worse will soon be over for the "housing crisis". Yep, just my opinion. Interest rates are still low, selection is great and there are still some sellers struggling to get out of their homes. In the long term, house values will increase, just makes sense. No new land is being made and the birthrate is still going strong, so there will be more people looking for more land and prices will have to rise. When? My crystal ball is not that good! I would guess by mid to late '09 we should be in better shape and since most people stay in their home an average of 5-7 years, it is a VERY good chance home prices will be up by the time you are ready to sell.

The other "people" who should be buying now is long term investors. Many foreclosures and REO's to be had at very good prices. And today I did a survey of various apartment complexes around me. Guess what? Occupancy was consistanly in the mid 90% range and prices have been going up steadily for the last couple of months. Much fewer deals and firmer prices. So if you buy now and fix-up for a rental you should be able to keep it full with good renters. What more can you ask, positive cash flow and an increasing value investment. Best of all worlds. That my story and I'm sticking to it!!!

Posted by Phil Turner on July 9th, 2008 11:57 PMPost a Comment (0)

EXCITING NEW FHA LOAN PROGRAM!

July 6th, 2008 10:09 PM

FHA has instituted and new loan program that will allow mony more people get into that new home! Short on down payment money......how about $100. No, that is not a typo, it is for real!! Just $100 down payment and you can get your new home, Why rent any longer?? No income restrictions at all!! Call me for details. 770-222-0761

Posted by Phil Turner on July 6th, 2008 10:09 PMPost a Comment (0)

UP TO $1Ok DOWN PAYMENT ASSISTANCE!

July 3rd, 2008 12:31 AM

How would you like to get down payment assistance of $5 for every $1 of down payment you make??? If you have $500 for a down payment, you get an additional $2500 free making a $3000 down payment on your new home! This will lower your payments nicely. If you have $2000 for your down payment then you get matching free money in the amount of $10,000, making your down payment $12,000! Free is always good!! Yes, there are some income restrictions but certainly not impossible amounts. (varies with number of people in household) Call me for complete details. 770-222-0761

Posted by Phil Turner on July 3rd, 2008 12:31 AMPost a Comment (0)