Yes, you can qualify for a home loan... even if you have student loans!

I get a lot of questions from buyers and sellers about mortgages! Here is some information one of my lender partners gave me to share with you:

Contrary to current popular opinion, student loans are not the death of one’s ability to buy a home.  More important is that all bills, including student loans, are ALWAYS paid on time.  As long as income is high enough to support a house payment + other recurring monthly debts like car payments, credit card payments and student loan payments, then there has never been a better time to invest in home ownership.

A couple of quick definitions:  Front end Ratio:  Proposed housing payment as a percentage of gross monthly income.  Back end Ratio:  Proposed housing payment + other recurring monthly debt as a percentage of gross monthly income.

Lenders typically want your front-end Debt to Income ratio (DTI) to be less than 31 percent, and your back-end DTI to be less than 43 percent.  However, the Federal Housing Administration ( FHA) typically allows more flexibility. The FHA also excludes student loan payments that are deferred until at least 12 months after the anticipated closing date from your DTI.

In addition to credit scores, what do lenders look at when it comes to a credit report?   The crucial time-line is the most recent 12 month history for all open accounts.  All payments made within the past twelve months must be paid on time….no exceptions.  Collections?  DO NOT pay them off unless your loan officer otherwise directs you to do so.

Thanks for reading! Have an idea for a future post? I'd love to hear from you! Shoot me an e-mail: Jeff@JeffSellsGeorgia.com or visit me online at http://www.JeffSellsGeorgia.com 

Credit: Randi Krasnoff, Sr. Loan Originator, Silverton Mortgage Specialists 

 

Atlanta Real Estate: Surge in Cash Offers Changing Competitive Landscape of Metro Atlanta Real Estate Market

The cash market for real estate is heating up in Atlanta. I've seen more cash offers on homes so far in 2014 than I've seen in my 7 years in real estate combined! Some of these buyers are large corporate investors. Others are smaller-scale local investors. Quite a few are actually just normal people like you and me who have decided that now is a good time to make a move. They may be taking cash out of their retirement account to pay for the new home, but I've also seen a lot of cases where empty nesters are buying a smaller home for themselves or purchasing a home for their children. 

There have always been cash buyers; what is different here? In one word: timing! The cash transactions I've worked in lately progress very quickly. The initial offer is made, a counteroffer or two go back and forth, and we are typically in a binding agreement -- all within 24 hours. I even had one house recently that we listed at 9pm on a Thursday, and we had a cash offer by noon on Friday! Sometimes these buyers see the homes in person first; other times, they make what we call a "blind cash offer." They figure they'll see the home when it is inspected, and they make it clear that they are relying on the representation and photos provided by the listing agent.

How does this affect you as a first-time buyer or repeat buyer who is obtaining financing? It simply means things have gotten more competitive. There is no need to fear or get discouraged; this is something we can prepare for and compete with! How, you may ask? It is all about choosing a great lender. A seasoned mortgage professional will give you a pre-approval that is virtually like having a blank check. Some lenders are now even sending a buyer's files through underwriting before they find a house! What does this mean for you? It means you may be able to close in as little as 10 days -- just like a cash buyer could.

The best part about my job is that I get to help people, help solve their problems, and help make their dreams a reality! Do you know someone who could use help buying or selling a home in Metro Atlanta or anywhere in the world? Send them my way -- I'll take amazing care of them or connect them with someone in their local market who will deliver the same great service!

Thanks for reading! Have an idea for a future post? I'd love to hear from you! Shoot me an e-mail: Jeff@JeffSellsGeorgia.com or visit me online at http://www.JeffSellsGeorgia.com

Eight Ways to Spend Your Tax Refund at Home

It is April, so you know what that means? It means many of you may have just gotten or are anticipating getting a tax refund! If you're getting one, congratulations, and keep reading! If you're not, you may still enjoy reading the list or using money you've saved for one of these projects:

1. Outdoor living. The scope of this will vary from house to house, but building or adding onto a deck or patio to create an outdoor living space can really make a difference. Once you've got the place to stand, work on some seating and eating arrangements. Chairs, tables, benches, or built-ins -- you really can't go wrong here. Not only can you and your guests enjoy this space, but potential buyers down the road will almost certainly appreciate the extra space!
2. Plant a garden. This may be a garden of flowers, but it could also be a garden of food! Don't let limited space restrict you; there are companies that specialize in selling supplies for tiered, hanging, and even hydroponic gardens! This project may require ongoing care, but many find gardening to be a great stress reliever or a project the whole family can partake in.
3. Paint, paint, paint! Paint can change everything! I've had clients paint everything - inside, outside, cabinets, picture/mirror frames, sidewalks, furniture -- practically anything can be given a new life with some paint. Painting can be fun, stressful, or both! Just stick with it (or hire someone) and you'll be amazed by the difference. P.S. Contact me for a discount card good at Sherwin-Williams! :-)
4. Flooring. Carpet, hardwood, tile, concrete - there are infinite options for the surfaces you walk on. This can be a big, long-term investment, so be sure to choose something neutral from a manufacturer with a good warranty. Don't skimp on things like carpet padding, hardwood floor underlayment, grout for tile, or baseboard/quarter-round trim -- the smalest11ewasl details can make the biggest difference in the final look and feel of your project.
5. Countertops. This has been one of the more popular upgrades over the last 10 years. I'm starting to have buyers in every price point request to be shown homes with granite in the kitchen or bathrooms. Most new home builders are also now including it in their "standard" package. The right colors, good installation can regular maintenance can make this a lasting investment that keeps you happy and helps you with resale down the road. P.S. If you're in Atlanta, contact me for a referral to a great countertop vendor!
6. Plumbing and Lighting fixtures. Swap out that "builder's chrome" or "brass" for more modern "brushed nickel" or "oil-rubbed bronze." If you can do the work yourself, this can be a very inexpensive project. Even if you have to hire someone, this can be a doable project that makes a difference, particularly when you're able to make everything in a room match. Want to go the extra mile? Replace light switch and outlet covers to match your new fixtures!
7. Appliances. We use them every day - why shouldn't they be pretty to look at, highly functional, and energy efficient? Especially if you have older appliances, this investment can pay for itself with utility rebates and lower ongoing utility costs. Stainless is still popular, but there are some new contenders in the market: White Ice and Bronze. If not the kitchen appliances, consider replacing your washing machine and/or dryer with ones that are more space and energy efficient!
8. Furniture. This one is highly subjective, but if you choose wisely, your furniture can not only be enjoyable for many years to come, it can help you sell your home! How, you may ask? Properly sized and placed furniture can complete a space, define a room, or help a future buyer understand how to use the space in your home. Buy furniture that fits your style and always keep an eye out for manufacturer's warranties and hidden delivery, finance, and freight charges to help you stay within budget.

Would a "10% off a purchase at Lowe's" coupon help you get started? Contact me and I'll be happy to get you one.
 
Thanks for reading! Have something you think I missed? I'd love to hear from you! Shoot me an e-mail: Jeff@JeffSellsGeorgia.com or visit me online at http://www.JeffSellsGeorgia.com