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How To Use Webinars To Create Real Paying Clients

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How To Use Webinars To Create Real Paying Clients

USDA Loans in Nashville, Tennessee

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USDA Loans in Nashville Tennessee

Below you will see a USDA Eligibility map of the Greater Nashville Area.  You will see areas that are shaded yellow as well as unshaded areas.  The shaded areas are areas that are not eligible for the USDA home loan while the unshaded areas are the areas that are eligible for USDA Rural Development program.

As you can see, there are many areas of the Nashville Metro area that is eligible for the no down payment program offered through the USDA Rural Development program.  Areas to the north of the city such as Whitehouse, Ridgetop, Hartsville, and Gallatin have areas that are eligible.  While to the West  areas such as Rural Hill, Holloway, Shop Springs and Lebanon are near eligible areas. If you are wanting to live south of the city in popular areas such as Smyrna, Franklin, Spring Hill, Columbia, Nolensville and Murfreesboro, you will find that you do not need to be far from the populated areas to be in an area that qualifies for the program.

The USDA Rural Development program is designed to help home buyers in designated ‘rural’ areas to overcome the primary obstacle faced by many wanting to fulfill their dream of owning a home-Down Payment.  Other programs, even the popular FHA loan program that only requires a down payment of 3.5% will still require buyers to have thousands of dollars available at closing for downpayment and/or closing costs.  With this program it is not uncommon for buyers to come to closing with no money out of pocket.

Give me a call today at 866 435 6553 if you are wanting to buy a home in the Nashville Metro Area and are considering purchasing in any of the non shaded areas in the map below, and would like to consider a loan program that requires no down payment.  I will be happy to explain the program further and help you get approved for the purchase of your new home.

 

USDA Map Nashville

Should you get Pre-approved before selling your current home?

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While we may not know what came first, the chicken or the egg, we can guess that making sure you can move into your new home should come before selling your current home.

Imagine the frustration of selling your current home and then finding out that something has changed on your credit report without your knowledge that would prevent you from qualifying for a loan to purchase your next home.  Maybe it is not your credit that has changed, but loan programs that changed since you purchased your last home.  There are many people that were able to qualify for a home loan a few years ago that cannot get a loan today.  Stated income loans, bank statement loans and many other loan types that were considered sub prime or alt doc loans no longer exist.

It is easy, and wise to spend some time talking to a mortgage lender and get approved for your new home purchase before selling your current home.

VA Home Loans

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The VA Loan program started 1944 as part of the original Servicemen’s Readjustment Act also known as the GI Bill. The GI Bill was signed into law by Roosevelt and provided veterans with a federally guaranteed home loan that did not require a down payment. This feature allowed the dream of home ownership to become a reality for millions of veterans. The GI Bill contributed more than any other program in history to the welfare of veterans and their families.

With more than 22 million veterans and service personnel eligible for a VA loan, it is attractive and has many advantages over other loan programs.  The requirement for eligibility varies depending on when the veteran served in the military.

  • For those that served during wartime the requirement is for 90 days of service and 180 days of service for those that served during peace time. 
  • There is a two-year requirement if the service member joined and began service after September 7, 1980 or was an officer and began service after October 16, 1981.  
  • The requirement is for 6 years of service for Reservist and members of the National Guard.

VA  loans will allow you to purchase a home with no down payment up to the VA county loan limit for your area.  However, if you purchase a home that is priced greater than the VA county loan limit, there is formula that calculates the required down payment to be roughly 25% of the amount that is over the county loan limit.

The current standard VA loan limit is $417,000.  Thus if you purchased a home with a VA loan for $517,000, the purchase price would be $100,000 over the county loan limit and your down payment requirement would be roughly $100,000.

 VA loans also allow the seller to pay most, if not all of the buyer’s closing cost.  This coupled with the no down payment requirement often allows the veteran to purchase a home with virtually no money out of pocket.

VA guaranteed loans are made by private mortgage lenders, such as banks, savings & loans, or mortgage companies to eligible veterans for the purchase of their primary home. The guaranty means the lender is protected against loss if you or a later owner fails to repay the loan. The guaranty replaces the protection the lender normally receives by requiring a down payment or private mortgage insurance (PMI) allowing for more favorable financing terms.

The only time the VA loan may not be the best choice is when a home buyer has great credit scores and wants to put a 20% down payment on their home purchase.  The reason is that with a 20% down payment no PMI or monthly mortgage insurance is required on the conventional loan.  The conventional loan without the monthly mortgage insurance and great credit scores ( > 740)  would result in the same payment as the VA loan.

Give me a call with any of your VA loan questions.  VanDyk Mortgage has been helping veterans with their home loans for over 25 years and we would be happy to help you too.

 
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FHA Lenders in Atlanta Georgia

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FHA Lenders in Atlanta Georgia

Who Qualifies for a FHA Loan?
FHA loans are not just for 1st time home buyers. Anyone that meets the credit and debt ratio requirements qualifies for a FHA home, regardless if they have owned a home or even had an FHA loan before.

What are the benefits of an FHA Loan?
The benefits of a FHA loans are great in that will allow buyers to overcome some of the obstacles that would prevent them from obtaining conventional financing for the purchase of their new home.

What Credit Score do I need for an FHA Loan?
The minimum credit scored required by FHA is going to be different than that required by mortgage lenders
While the preferred minimum score is 640, those borrowers that meet the other credit requirements of an FHA loan can get approved with a middle score of 620.

Can I get an FHA loan in Atlanta Georgia if I have had a bankruptcy?
FHA Loans has required a waiting period following a bankruptcy that differs with the type of bankruptcy filed.
The waiting period following a chapter 13 bankruptcy is 1 year from the file date year and 2 years from the discharge date for a chapter 7 bankruptcy
FHA Lenders in Atlanta Georgia
How much Down payment do I need with an FHA Loan?
The minimum down payment is 3 1/2 per cent with an FHA Loan in Atlanta Georgia

Can I get a FHA loan if I just graduated from college?
College gradutates that are employed in their field of study can count their time in school towards the time on their job.  The time most underwriters are looking for is 2 years.  So if you graduated from college with an associates degree and are now employed in your field of study, your 2 years in school would satisfy the time on job requirement.

Can I use gift funds for a down payment on a FHA loan?
Borrowers are allowes to use gift funds for their down payment on a FHA loan. It is critical to discuss this with your mortgage lender early in the application process if you are using gift funds as there are protocols that dictate how these funds need to be sourced

FHA Lenders in Atlanta Georgia
How much of the closing cost can sellers pay on a FHA Loan?
While conventional guidelines only allow the seller to pay 3% closing costs in most cases, FHA Guidelines allow the seller to pay up to 6% of the purchase price towards the buyers closing cost and prepaid expenses. This increase allows for the seller to pay for most if not all of the buyers closing costs.  This reduces the cash the buyer needs at closing, which is often one of the main obstacles facing home buyers, and makes it possible for more people to qualify for a home purchase.

Can someone co-sign for me to get an FHA loan?
FHA loans do allow for a non purchasing co-borrower. THis allows for parents to help their adult children to purchase a home. It is very similar to cosigning and the parents income can be used to help the buyer qualify for the house payment.

 

Bill McDonald Mortgage Originator  nmls #95835
157 Laurelwood Ln Crossville, TN 38555
(865) 686-8711

 

 

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FHA Loans in Atlanta Georgia

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FHA Loans in Atlanta Georgia

Who Qualifies for a FHA Loan?
FHA loans are not just for 1st time home buyers. Anyone that meets the credit and debt ratio requirements qualifies for a FHA home, regardless if they have owned a home or even had an FHA loan before.

What are the benefits of an FHA Loan?
The benefits of a FHA loans are great in that will allow buyers to overcome some of the obstacles that would prevent them from getting many other types of financing

What Credit Score do I need for an FHA Loan?
The minimum credit scored mandated by FHA is going to be different than that required by mortgage lenders
Most lenders will require a credit score of a 620

Can I get an FHA loan in Georgia if I have had a bankruptcy?
The FHA has required a waiting period following a bankruptcy that differs with the type of bankruptcy filed.
for a ch 7 bankruptcy the waiting period is at least 2 years and 1 year for a ch. 13
FHA Loans in Atlanta Georgia
How much Down payment do I need with an FHA Loan?
The minimum down payment is 3 1/2 per cent with an FHA Loan

Can I get a FHA loan if I just graduated from college?
College gradutates that are employed in their field of study can count their time in school towards the time on their job.

Can I use gift funds for a down payment on a FHA loan?
Borrowers are allowes to use gift funds for their down payment on a FHA loan. It is critical to discuss this with your mortgage lender early in the application process if you are using gift funds as there are rules that dictate how these funds need to be sourced

FHA Loans in Atlanta Georgia
How much of the closing cost can sellers pay on a FHA Loan?
While conventional loans only allow the seller to pay 3% closing costs in most cases, FHA Loans allow the seller to pay up to 6% of the purchase price towards the buyers closing cost and prepaid expenses.

Can someone co-sign for me to get an FHA loan?
FHA loans do allow for a non purchasing co-borrower. THis allows for parents to help their adult children to purchase a home. It is very similar to cosigning and the parents income can be used to help the buyer qualify for the house payment.

 

Bill McDonald Mortgage Originator nmls #95835
157 Laurelwood Ln Crossville, TN 38555
(865) 686-8711

 

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FHA loans in Marietta GA

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FHA loans in Marietta GA

FHA loans in Marietta GA will allow people with that have difficulty obtaining conventional financing to still qualify for a loan to purchase their new home.

Challenges that FHA loans in Marietta can help overcome are:

  • Down Payment: While conventional financing requires a 5% down payment and even higher in some cases, FHA loans only require a down payment of 3.5%. Furthermore, unlike conventional financing an FHA loan allows for the down payment to come from a family member as gift funds as opposed to being the buyer’s own funds from their savings.
  • Cash to Close: FHA loans will allow for the seller to pay most if not all of the buyers closing cost.  Although conventional loans only allow for the seller to pay up to 3% of the buyers closing cost the FHA loan will allow for the seller to pay 6%.  This fact alone combined with the lower down payment requirements can save the buyer’s thousands of dollars at closing and opens the door for many more people to be able to qualify for a home purchase.
  • Credit Requirements: Conventional financing takes a much tougher stance on past credit issues that does the FHA loan program.  While conventional will require as much as a 7 year wait to qualify for a loan following a credit event such as a bankruptcy, foreclosure or short sale, the FHA guidelines are much more forgiving.  FHA loans are available as soon as 2 years following a chapter 7 bankruptcy and 3 years following a foreclosure and each of those can be decreased by 1 year in cases where the buyer can document extenuating circumstances as the cause of the credit difficulty.

While it is true that FHA loans have become less competitive in the last few years due to their increased monthly mortgage insurance payments and people that can qualify for other loan programs will often avoid and FHA loan, it is also true that an FHA loan is often the only loan program available for many that are looking to purchase their new home.

Give us a call today and see if an FHA loan in Marietta GA is the right loan for you, or if there is another loan program that would be more suitable for you to purchase your new home.

Bill McDonald Mortgage Originator nmls #95835
157 Laurelwood Ln Crossville, TN 38555
(865) 686-8711

 

6 mistakes homebuyers make with lowball offers

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image lowballIncrease your chances of buying a home for a steal by avoiding these errors.

For some home sellers, it’s been a long year without a home sale. Armed with this knowledge, many buyers out there may be fishing for a steal.

Sellers who have had their homes on the market a long time may be eager to move on. Financial hardships will drive other sellers to desperation.  Additional sellers will choose to let their listings expire and try again next year. They, too, may be willing to make a deal in order to sell their properties.

The key to making an aggressive low-ball offer on a home is to start by finding properties that have languished on the market for a long time. The softer the market, the more likely the strategy will work. But buyers can get tripped up. Here are six mistakes people commonly make when making a low-ball offer.

 

1. Not understanding the market

Before submitting an offer, your real-estate agent should do a full comparative market analysis of the property to determine what its fair market value is.  For instance, if it’s a buyers market (ask your agent if this applies) make an aggressive offer, after considering the time the property has been on the market and neighborhood comparables. But in other markets, a low offer won’t get you far.  In general, when inventories are down, interest rates are historically low, and there is a pretty large appetite for purchase because of those factors. Sellers will often hold closer to their asking prices.

 

2. Not picking the right real-estate agent

Some real-estate agents caution buyers against making an offer that is so low it could offend the seller and halt negotiations.  And sometimes agents are too reluctant to make aggressive offers, because they may be more focused on completing a deal and collecting their commission, rather than making the best deal.  In addition to that, their negotiation skills might not be up to par.  If it’s an appealing, well-priced property that has five or six offers on it, well, going in 10% or 20% under asking isn’t going to get you anywhere. But on a property that has been overlooked by the market and doesn’t have multiple bidders, it often doesn’t hurt to go in low.

 

3. Not backing up your price

There’s an art to presenting an offer that’s substantially less than the asking price. A low offer could start negotiations off on the wrong foot if you’re not careful.  The key is for you or your agent to explain the offer when presented.  Sellers want to know why you’re coming in so low. Include recent (comparable sales in the area) or issues with the property that validate why your offer is so low. Don’t be too harsh with your criticism, however — that can also work against you.

 

4. Not knowing what you’re willing to pay

Buyers these days have a strong motivation to get the best possible price on a property, especially if they believe that home values will fall even more. Their biggest worry is that people will say they overpaid. But sellers have limits, too, most often dictated by the amount of home equity they have. Before negotiations begin, it’s important for a buyer to decide what his walk-away price is.  At some price point, the deal is no longer worth doing, no matter how great the property.  While a buyer should know how high she is willing to go, don’t put limits in the first offer. You lose credibility  if you say it’s your “best and final” offer, but then are willing to come up with a few thousand dollars more in order to buy the property.

 

5. Not making a clean and easy offer

When you make a low bid, you want other elements of the offer to be attractive to the seller. Also remember that deals that can close quickly may often have appeal. Make sure there are as few contingencies as possible. It’s best if buyers don’t have a home to sell in order to buy the one they’re bidding on. Also, have your financials in order from the start. Loan qualification is more difficult these days, so it’s important to have a lender pre-approval letter.

 

6. Assuming cash will always get you the best deal

Cash is king, but in the end, a seller often wants the most money for his home — regardless of whether the buyer needs a mortgage or not. So don’t think making an all-cash bid will automatically mean an accepted offer.

 

That said, if the seller is a bank because the property is a foreclosure, the institution may accept a lower offer from a cash buyer, as opposed to someone who needs a mortgage. Banks often don’t want to deal with mortgage-related delays.

As always, having a professional to help you navigate the ins and outs of buying a home can help save you thousands of dollars and lots of headaches.  If you need help selecting a professional to help you, please let us know.

based on an article written by Amy Hoak

 

Things to Avoid Applying for your New Home Loan

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After you have made application for a mortgage to purchase your New Home, it’s very important that during the loan process you take extra special care of your financial and credit “state of affairs”.

The loan process is just like it sounds.  It’s a process, and it’s not over until your loan closes.  Until then, income, liabilities, and assets will continue to be scrutinized to make sure they fit in with any guidelines established for the particular loan.  All borrowers are different, and none of this is written in stone, but in general it is best to avoid these common mistakes:

  • Do not risk making late payments on your mortgage, credit cards, car loans, student loans, rent, etc.  Nothing will drag down your credit scores faster than very recent late payments.  If your new home is being built, you need to be extra careful over these 3-6 months to avoid any late payments.
  • Do not take on new debt.  All lenders will check your credit report just before funding the loan to verify that you have not added any new monthly payments to your overall debt picture.  Car payments, increased credit card balances, etc. can increase your debt ratio beyond the limits allowed by lender.  I know it’s tempting, but its best to wait until after closing to start the shopping spree.
  • Do not pay off any debt other than installments debts that are scheduled to be paid off with regular on time payments.
  • Do not spend your cash reserves.  While avoiding an increase to your monthly debt payment is important, it’s also a bad idea to use your savings to pay cash for significant items as well.  A lot of loans programs require the borrowers to have a certain amount of reserves after closing.
  • Do not deposit funds into your account that cannot be sourced with a paper trail.  New money laundering laws as well as mortgage underwriting guidelines mandate all
  • Do not change jobs.  I realize sometimes this can be unavoidable, but if at all possible, wait until you’ve closed.  Lenders verify employment within a day or so of funding the loan and will almost always cancel the deal if your employment has changed.  Switching from one employer to another with the same job description may not guarantee a problem, but stability is the key here.
  • Do not switch jobs if the new one is in a completely different field, and do not, under any circumstances, decide to become self employed or commissioned.  If you do, your income will not be useful for another two years, so stay put if at all possible.
  • Do not co-sign for anything.  Many borrowers believe there is no harm in co-signing with the rationale that their son or daughter or whoever – is making the payment, so it doesn’t matter.  If your name is attached to a new debt, it will be treated as yours and factored into your debt ratio.
  • Do not lease a new car.  This should fall under the “no new debt” category, but for some reason some people get confused about this and think leasing is not the same as buying, so I’m making a separate mention of it here.  The bottom line is it’s still an expense that comes out of your income, so it can still push you over the limit with your debt ratio.  Be patient, wait a few weeks.

Also it is best to Avoid credit inquiries if you can.  i.e. applying for a new credit card.  Though not as damaging in the past as far as credit score is concerned, a lot of recent inquiries can affect your score.  The presence inquiries can slow your loan process as well, as the underwriter will need to document that you did not obtain any undeclared debt from the inquiries.

Please call me with any questions at 866.435.6553

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