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Mortgage Rate Shopping

brian_alg — Wed, 01 Apr 2009 23:33:18 +0000

While there is a lot of publicity about the current historic mortgage rates, it is not as easy to shop for the best product as comparing rates. The Georgia and Florida loan markets are commonly quoted with 1 origination point. This is not always the case, but it is customary for the majority of mortgage companies to charge this fee.

The origination point is a commission to the mortgage company, and is negotiable. If you are being offered the absolute wholesale price that the mortgage company is able to get the money for, then a 1% fee is fair. What you need to keep in mind is that many companies commonly mark up the rate and are being paid by the underlying investor and from you — in essence double-dipping at your expense! Beyond origination fees, be sure to look at the total cost of the fees included in the “800″ section of your GFE. This is typically where most of the junk fees and other items are added.

In the current economy, you should be targeting a total compensation to your mortgage company of 1% – whether in the form of an origination point or in the form of accepting a slightly higher rate, which allows the mortgage company to be paid by their investor.

An important takeaway – Do not mortgage shop by asking only about rates.

Atlanta Bulk REO Property Purchase

brian_alg — Tue, 31 Mar 2009 06:04:39 +0000

Virtually every day I get calls from customers wanting to buy 10+ properties from a bank or institutional seller. With the lack of credit and capital available, I find this amazing!

The reality is that the deals available today will make people rich – extremely rich. Properties are selling for 25-40% on the dollar……unprecedented discounting.
If you are interested in bulk property purchasing, we can help you do to our direct lender relationships including REO departments.

Atlanta Mortgage Rates today – 3/30/2009

brian_alg — Tue, 31 Mar 2009 06:01:09 +0000

The 30-year fixed rate today was again at 4.625%. This assumes you are a well qualified borrower – credit score of 720+ and a LTV (loan-to-value) of 80% or less.

Can I qualify?

brian_alg — Sun, 29 Mar 2009 14:46:54 +0000

The media is full of information about how great the loan rates are and how bad the housing market is. What is not covered as often is the more strenous qualification process that Fannie/Freddie have imposed. Whereas before it was quite easy to be approved for your new loan wtih credit scores down to the low 600’s, this is no longer the case. If your credit score is below 680, you will find it difficult to qualify for the low rates that are advertised.

You greatly improve your chances of qualifying for the best rate on your mortgage with the following credentials:

Low debt to income ratio
Credit score over 720
If a refinance, at least 20% equity in your home and if a purchase a 20% down payment
Job Stability – whether you are an employee or own your own business, the length of time is now an important factor