Tag Archives: Mortgage loan

Government Shutdown May Slow Your Atlanta Real Estate Market

We don’t really know if the recent government shutdown will destroy the economic momentum we’ve gained, but we do know the furlough of some 800,000 government employees will undoubtedly slow things down. Another thing we know is that the longer this thing goes on, the worse the effects will be. Some employees of the Pentagon were recalled for work beginning on Monday, and the House passed a bill to approve back pay for furloughed employees. That’s good news for those employees, but what about the millions of Americans who need and/or depend on their services. What about the work that’s not getting done while they are at home?

Imagine being a homebuyer in the middle of a real estate deal and the federal government shuts down. You need your tax transcripts to get your mortgage loan approved and the only department that has the keys to what you need is on furlough.

The approval of most mortgage loans, at least 99% of mortgage loans, require tax transcripts. Homebuyers and Real Estate Agents who are in this predicament will surely see a stall in their real estate transaction. In some cases, deals could potentially fall apart because of the inability for homebuyers to get what they need from the government. Plus, these delays could cause some pre-approvals to expire and force homebuyers to purchase at a higher interest rate if interest rates continue to rise. Because interest rates are a major factor in how much house a homebuyer can buy, sellers and real estate agents are affected as well.

Even if you are a homebuyer who was lucky enough to have gotten your transcripts and your pre-approval to buy a home, you could still have some issues if you applied for a mortgage loan from the Federal Housing Administration. FHA mortgage loans aren’t federally funded, but they are guaranteed by the federal government. Some lenders may not be willing to lend without a guarantee already in place. If you happen to be in this situation, go with a larger institution that is in a better position to fund the loan even in the absence of a guarantee. Otherwise, you’ll risk having your loan on hold and your real estate deal falling apart.

In Atlanta, there is already a shortage of real estate on the market relative to the number of Atlanta homebuyers who are looking to buy a home right now. Many of the houses on the Atlanta real estate market are foreclosures and HUD homes, and the Department of Housing and Urban development is working on a skeleton crew during the furlough with 337 out of 8,709 employees on the job. There’s a possibility, but seemingly a slim chance for new HUD homes to come on the market for a while. If this will be the case, Atlanta homebuyers will see even slimmer pickings for housing in the current Atlanta real estate market.

The American people as a whole immediately felt the effects of the shutdown. The gravity of the effects, however, will be determined by the length of the furloughs. The longer the furlough, the dimmer the bright spot of the housing market recovery. We’re all here in the same boat, waiting to see what happens.

In what ways have you felt the effects of the recent government shutdown?

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Stressed Out About Buying a Home?

Image Source: ziprealty.com

Use these 8 tips to Minimize that Stress…

Buying a home is exciting. The process of buying a home can also be an emotional rollercoaster. It is one of the most intricate and involved transactions a person will ever complete in their lifetime. Preparation is the key ingredient to minimizing the stress that the complexity of a real estate transaction can bring. Use these 8 tips to help you avoid unnecessary stress.

Be a Smart Saver. When it comes to buying a house in Atlanta, saving money toward a down payment can give you more flexibility when it’s time to get a loan. You’ll want to do this long before you start your tour of homes.
Know Thy Credit. Knowing your credit score will give you an idea of how the mortgage company will view you as a borrower which affects your interest rate. Plus, finding out what’s exactly on your report will allow you to resolve any issues prior to applying for a mortgage loan. You can access your credit report once a year for free by visiting AnnualCreditReport.com.
Do Your Research. Learn everything you can about different loan types and any assistance available for buying a home in Atlanta and the metro areas. That way, you’ll have the knowledge to choose the right loan product for you. Remember, you want a loan that you can afford through the life of the loan.
Get Pre-Approved. Being pre-approved allows you to see how much house you can buy and makes your offer more attractive when your real estate agent submits an agreement to a seller. Be realistic about how much you can afford, and make sure you’re living within your means.
Determine What You Really Want. Know what are your negotiables and non-negotiables. This will help keep your real estate agent sane and will save you a lot of time in the long run. Stick to this list, and stay focused on it so you can quickly make decisions on what properties to view.
Have a Professional Real Estate Agent. When buying a home in Atlanta, the Go Getter Team is your professional assistance! There are so many details, laws, rules and regulations around a real estate transaction. It is a lot easier to go through the process when you have professional real estate agents on your side to be your guide and resource.
Understand the Offer. The price you’re willing to pay is only the beginning of an offer. Talk to real estate agents on the Go Getter Team about earnest money, due diligence periods, contingencies, closing time frames and other factors that may make your offer more attractive to the seller while protecting your interests.
Stay Tuned In…even after your offer is accepted. For varying reasons, not all transactions close. You want to be sure you follow our advice and stay on top of your deadlines and tasks so that you have the best chance of getting the keys to your new home in Atlanta!

As a part of the Go Getter Team, our real estate agents pride themselves on preparing Atlanta homebuyers for a successful transaction. We explain the entire process of buying a home and guide you all the way to closing and beyond. Buying a home is an exciting time in your life, and the Go Getter Team is here to be sure you enjoy the process!

If you’ve purchased a home in the past, what tips would you add to this list to minimize stress?

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