I’m sure many of you have been listening to the news and have heard about the new “Making Home Affordable” plan. 

The question is… ARE YOU ELIGIBLE to REFINANCE USING THIS PLAN? 

The good news is that you can quickly find out with the new Making Housing Affordable government website.  They have an online questionnaire that only takes a minute or two to complete and you get an instant response.

Visit the website at:  www.MakingHomeAffordable.gov

There are actually two different programs that are under the “Making Home Affordable” plan — one allows you to refinance if you no or little equity in your home but you are current on your mortgage payments (see the refinance questionnaire). 

The other program is for people who are behind in their mortgage payments and may qualify for a “loan modification” (see the mortgage modification questionnaire).

This may be a challenging and stressful time for you and your family, so please take advantage of the new mortgage assistance programs available to you so you can get back on your feet.  If you don’t qualify for the programs above,  please reach out to your mortgage holder or a local real estate professional in your area… help is available!

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INFORMATION BROUGHT TO YOU BY: 

Kerry Lucasse  ::  Atlanta Real Estate Consultant  ::  Keller Williams Realty  ::  404.432.1844

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With all that you hear on the national news these days, people certainly have it on their minds, especially if you are planning to make a major purchase, such as a car or a new home. 

Even if you have good credit, it is critical that you are armed with as much information as possible in order to protect your credit and your credit score.

Jason’s article provides some practical advice and will be invaluable for those of you who are considering buying a home in the next 6 to 18 months. 

He also provides links to the ONLY website that truly allows you to get FREE copies of your credit report each year — with no strings attached.

Click here to read the entire article titled “It’s Free, it’s fun, it’s your credit report”

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KERRY LUCASSE    ::    Atlanta Real Estate Consultant   ::    404.432.1844

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As you may have heard on the news, there is now a Federal Housing Tax Credit for first-time home buyers.  This has been a bit of a mystery for a few of my first-time home buyer clients, so I thought it would be helpful to break it down for my clients and for any others thinking of buying their first home. 

FIRST, THE BASICS of the HOUSING TAX CREDIT

Before you make an offer on a home, make sure you get pre-qualified and find a loan that fits your needs with these comprehensive questions.

1. What are the most popular mortgage loans you make? Why?

2. Which type of mortgage plan do you think would best for us? Why?

3. Are your rates, terms, fees, and closing costs negotiable?

4. Will I have to buy private mortgage insurance? If so how much will it cost and how long will it be required? NOTE: Private mortgage insurance is usually required if you make less than a 20-percent downpayment, but most lenders will let you discontinue the policy when you’ve acquired a certain amount of equity by paying down the loan.

5. Who will service the loan? Your bank or another company?

6. What escrow requirements do you have?

7. How long is your loan lock-in period (the time that the quoted interest rate will be honored)? Will I be able to obtain a lower rate if they drop during this period?

8. How long will the loan approval process take?

9. How long will it take to close the loan?

10. Are there any charges or penalties for prepaying the loan?

The lender must disclose a good faith estimate of all settlement costs. A check to cover your closing costs will probably have to be a cashier’s check. The title company or other entity conducting the closing will tell you the required amount for:

• Downpayment.
• Loan origination fees.
• Points, or loan discount fees you pay to receive a lower interest rate.
• Appraisal fee.
• Credit report.
• Private mortgage insurance premium.
• Insurance escrow for homeowners insurance, if being paid as part of the mortgage.
• Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.
• Deed recording fees.
• Title insurance policy premiums.
• Survey.
• Inspection fees-building inspection, termites, etc.
• Notary fees.
• Prorations for your share of costs such as utility bills and property taxes.

A Note About Prorations. Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance. For example, the gas company usually sends a bill each month for the gas used during the previous month. But assume you buy the home on the 6th of the month. You would owe the gas company for only the days from the 6th to the end for the month. The seller would owe for the first 5 days. The bill would be prorated for the number of days in the month, and then each person would be responsible for the days of his or her ownership.

What to Keep From Your Closing

• The Real Estate Settlement Procedures Act (RESPA) statement. This form, sometimes called a HUD 1 statement, itemizes all the costs associated with the closing. You’ll need for income tax purposes and when you sell the home.
• The Truth in Lending Statement summarizes the terms of your mortgage loan.
• The mortgage and the note (two pieces of paper) spell out the legal terms of your mortgage obligation and the agreed-upon repayment terms.
• The deed transfers ownership of the property to you.
• Affidavits swearing to various statements by either party. For example, the sellers will often sign an affidavit stating that they have not incurred any liens on the property.
• Riders are amendments to the sales contract that affect your rights. For example, if you buy a condominium, you may have a rider outline the condo association’s rules and restrictions.
• Insurance policies provide a record and proof of your coverage.

If you are looking for a knowledgeable — and very honest — Atlanta real estate agent, please don’t hestitate to call me at 404.432.1844. 

All the best,

Kerry Lucsse

Intown Atlanta Real Estate Consultant

Keller Williams Peachtree Road

(404) 432 1844

** Metro Atlanta real estate agent, specializing in the Atlanta Intown neighborhoods, including Grant Park, Virginia Highlands, Kirkwood, East Atlanta and Druid Hills.

The most important question for a new home buyer is usually “How much will this cost?”

 This may vary from state-to-state, but here is the breakdown for Georgia home buyers:

1)  Earnest Money………….Typically 1% of the purchase price

     ** Due when you submit your offer on a home

2)  HOME INSPECTION……………………………..$375 – $500

3)  HOME APPRAISAL………………………………….$300 – $375

4) LOAN APPLICATION FEE / CREDIT CHECK………………… Varies by Lender

5) TERMITE INSPECTION (optional, but recommended)……. $45 – $75

6) LOW-FLOW PLUMBING CERTIFICATE (Dekalb County)…. $75

***  TOTAL (ESTIMATED) COST FOR A $300,000 HOME –>  $3,800 ***

Once the home has been inspected, appraised and approved by the lender, there are costs AT CLOSING. 

CLOSING COSTS are really in two fee categories — Closing Costs and Prepaid Items

1) CLOSING COSTS include the loan origination fee (usually1% of the purchase price), title examination, title insurance, courier fees, transfer tax, intangibles tax and other miscellaneous fees. 

2) PREPAID FEES include costs to set up your escrow account with the lender and include homeowners insurance, property taxes, and homeowners association dues (if any).  Usually your new lender will want 2 – 6 months of reserves in the escrow account, just in case you do not pay your mortgage, they will still be able to insure the home and pay the property taxes.

Typically, the closing costs and prepaid items add up to 2 – 4% of the purchase price.  Using my $300,000 example above, the closing costs would be $6,000 to $12,000.  It just depends on how much you are financing, if you pay for discount points (to decrease your interest rate), etc.  For an accurate breakdown of your closing costs, ask your loan officer or mortgage broker for a “Good Faith Estimate.”

THE GOOD NEWS — When you negotiate your offer on the home, you can also ask that the seller pay a portion of the closing costs and pre-paid items.

If you have any questions about the home-buying process, please don’t hestitate to call me at 404.432.1844 or visit my website at http://www.ATLhomesearch.com

All the best,

Kerry Lucasse

Real Estate Consultant, Keller Williams Realty

KerryLucasse@KW.com

404.432.1844

It is a fantastic time to buy a home or condo in Atlanta — interest rates are low, prices are low and there is a fair amount of inventory on the market.  The question is… are you prepared to make that next step? 

To follow are 10 sure-fire ways to help you buy your first home:

1. Decide what you can afford. Generally, you can afford a home equal in value to between 2 – 3X your gross income.
 
2. Develop your home wish list. Then, prioritize the features on your list.

3. Select where you want to live. Compile a list of three or four neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, proximity to your work, and of course, safety.

4. Start saving. Do you have enough money saved to qualify for a mortgage and cover your down payment?  Ideally, you should have 5 to 20 percent of the purchase price saved as a down payment. Also, don’t forget to factor in closing costs. Closing costs — including taxes, attorney’s fee, and transfer fees — average between 2 and 5 percent of the home price.

5. Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments
 
6. Determine your mortgage qualifications. How large of mortgage do you qualify for? Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you.

7. Get preapproved. Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.

8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you’ve saved to buy your fist home without paying a penalty for early withdrawal.

9. Calculate the costs of homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.

10. Contact a REALTOR®. Find an experienced REALTOR® who can help guide you through the process
 

FOR MORE INFORMATION ABOUT THE HOME BUYING PROCESS, CLICK HERE

If you have any questions about the Atlanta real estate market or need help determining what you can comfortably afford, please don’t hesitate to call me at 404.432.1844.  I truly enjoy working with first-time home buyers and it would be a pleasure to help you find your new Atlanta home!

Kerry Lucasse
REALTOR, Keller Williams Realty
404.432.1844
KerryLucasse@KW.com