This installment of the Human Side is one that I am sure most people can relate to in their own lives. It is a story of the passage of time, the rhythm of life, and the American Dream.
The first of these is the passage of time. I had the pleasure, again, of working on a mortgage for a couple buying their first home. This was not a couple that was new to me, as we had been friends for many years. The young lady was a family friend that I first met when she was in high school. Very kind and sweet and always pleasant to be around, she is just an overall good person. My children saw her more as a cousin than anything. She and her older brother were around us often. She was there when my daughter, Briana, was born – who is now in high school herself.
A few years passed. She met her soon to be husband and started a family. I saw them a couple of times when we would have bon fires or during the holidays, and time kept passing. Then, the opportunity came for this, now family of four, to buy their first home.
Not having been through the process before, they had a lot of questions. I loved being able to answer their questions and guide them through the entire process. They bought a Fannie Mae foreclosure and that came with some extra hoops to jump through. We navigated all of the hurdles and, as of this writing, they will be closing on their first home in the morning.
This afternoon, they were in my office as we went over their settlement statement and discussed final details. They started the process a little sheepishly and full of questions. Nearing the end, as time had passed there was a change. “Can we buy a home” turned into “we CAN buy a home” which turned into “we ARE” buying a home”. They were proud of themselves for what they had accomplished, very pleased that they were going to own a home for less than their rent, and the air of hope and optimism was palpable in the room.
As we sat there, I saw the moment happen….
While you’re searching for your new home, there are several factors to consider: amenities, location, size, school districts etc…, one thing you won’t want to overlook is the home loan pre-approval process. There would be nothing worse than discovering the house of your dreams only to find out you can’t afford it.
By getting pre-approved for your home, you know exactly how much you can borrow, which price range to shop in and it lets lenders and sellers know you are serious about buying.
Getting pre-approved is easy. It also makes the overall home loan process go smoother.
What you need for pre-approval
• Copy of driver’s license and Social Security card
• Current pay stubs
• Employment history (last two years)
• W2s (last two years)
• Bank statements (last two months)
• Current mortgage statements (if applicable)
• Landlord address and phone number (if applicable)
• Divorce Decree/Child Support Order (if applicable)
• Bankruptcy petition (if applicable)
The pre-approval letter is valid up to 90 days, but your lender can extend the date if you haven’t settled on a home in that amount of time.
If you are interested in getting pre-approved or just want to know how much you could borrow. Click here and select Don Delor as your Loan Officer. Or email me directly at Don.Delor@GuarantyTrust.com
Every day I am reminded of the human side of our business. Lost in all of the rate quotes, appraisals, and document gathering is the underlying reason we do all of this – the people.
Each loan application is a story. Each story is told on a very official sounding Uniform Residential Loan Application Form 1003. But, it is really just one side of a tale about life. Every week, I am going to share one of these tales with you.
This week’s story comes from Rutherford County. I had just completed the pre-approval process for a couple that are buying their first home. Everyone is very excited for this family. They have been friends for a long time and are ready to jump in this market.
While he was at work, my client mentioned to a friend that he was buying a new home, and the conversation turned to financing. After discussing the experience he was having at Guaranty Trust, his friend decided to give me a call to talk about refinancing.
I received the call, set an appointment, and met with this man. Everything was going as usual. We talked about what he wanted to do and determined that we could help. He was a little apprehensive because he had not had much luck with his current servicer.
After we locked his interest rate and got the process started, we took a coffee break. We started to talk about our own “stories”, where we were from, etc.. This is when he told me his story. In 1991 – 1992 during Desert Shield/Desert Storm he was in Iraq. He and his family are Kurdish. They were part of the millions of refugees that were forced from Iraq and into the surrounding mountains. They roamed there for quite some time. Eventually, the family was split apart and sent all over the globe as spaces were available. He went to London and his sister went to Germany. Some went to Turkey and other locations. Years passed and they have all started to meet back up and reunited, mostly in the United States….
Every day I am reminded of the human side of our business. Lost in all of the rate quotes, appraisals, and document gathering is the underlying reason we do all of this – the people.
Each loan application is a story. Each story is told on a very official sounding Uniform Residential Loan Application Form 1003. But, it is really just one side of a tale about life. Every week, I am going to share one of these tales with you.
This week’s story is about perspective. I had pre-approved a family for a new mortgage so they could relocate. Dad had a new job and it was time to move. Their current home was under contract to be sold, their new home was under contract for purchase and the wheels were set in motion. We earnestly started the mortgage process and 21 days later we were on the eve of closing and successfully relocating this family.
Then, we got a call. The person who was to buy their current home passed away! Since my clients had to have their current home sold to qualify, they were unable to buy their new home. But, of course, this is where the perspective comes in. The person who passed had been ill and was moving to be close to children and family. Upon hearing the news, my thoughts immediately leapt to the family of this man and what they must be feeling. Everyone involved was changed…
Recently there has been a lot of buzz about changes the Federal Housing Administration (FHA) is making to their guidelines. You may be unclear about what the changes are and what they can mean to you. Let’s start from the beginning.
What is the FHA and MIP?
The FHA doesn’t actually lend people money. The FHA insures loans made by FHA-approved lenders throughout the United States. In fact, the FHA is largest insurer of mortgages in the world. If you have an FHA loan, it means that your lender has been insured by the FHA for your loan.
Just like your automobile insurer pays for your car repair from monthly premiums from customers, the FHA is able to insure lenders through Mortgage Insurance Premiums (MIP) it collects from homeowners who have an FHA loan.
Typically, FHA homeowners pay an upfront MIP plus an annual premium paid monthly. This is where the changes begin.
April 1, 2013
On April 1, 2013 any homeowner with an FHA mortgage will see an annual increase in their Monthly Insurance Premiums. The increase will depend on two factors- the term of your loan and your Loan to Value ratio (LTV). The charts below illustrate the scenarios.
The chart below shows the previous and new annual MIP rates by loan term, base loan amount and LTV ratio. All MIPs in this table are effective for case numbers assigned on or after April 1, 2013.
Maybe you’ve noticed that Spring 2013 is THE Time for new home development in Central Tennessee.
Check out the Tennessean annual new homes magazine, now online HERE
Not only does this great publication break down subdivisions by price, but also by communities and by school zones…what better way to find the right place for your family to settle.
As always we’re here to make the financial task of buying a new home easy to navigate. Call us anytime for your free purchase analysis…And be sure to ask us how we can pay your closing costs.
Guaranty Trust is proud to be a part of Mortgage Executive Magazine’s 2012 list of Top 100 Mortgage Companies in America, ranked #66. We are growing and excited to be helping people achieve the dream of home ownership for 27 years now. If you are interested in refinancing your current home or purchasing a new home, give us a call at (800) 467-3032 or (615) 895-5101 if you are local. You can also apply online HERE.
All of our employees here at Guaranty Trust get excited each year to get involved in our community by giving to the United Way. We were thrilled to be recognized with this award for the 2012 Best Financial Services Campaign and look forward to running another successful campaign in 2013 to make a difference in our local community!
Everyone at Guaranty Trust wants to continually get better at what we do, providing families with the absolute best mortgage experience. First of all, thank you for doing business with GTC! We would love it if you could take a few moments to tell us about your experience. Here are a couple of places you can post a review…
In my 30+ years of experience in the mortgage industry, one thing I’ve found is whether you are purchasing or selling your home, choosing the right real estate agent is the key to successfully meeting your goals. Choosing an agent that understands your concerns and is willing to make buying or selling your home a priority can make all the difference.
Qualities to look for in your real estate agent:
• I recommend asking your agent if he/she is a Realtor. In other words, is your agent a member of the National Association of Realtors (N.A.R.)? This is important because, not only does the N.A.R. require members to adhere to a strict Code of Ethics, but being a member gives the agent access to a Multiple Listing Service (MLS), which will give you access to the greatest number of homes.
• If you’re selling your home, you want to ask what specific marketing strategies your agent plans to implement for your property. As the internet continues to play an important role in the way buyers search for homes, it’s important to consider an agent that is fluent with online marketing tools to make sure your home is getting maximum exposure. Guaranty Trust offers the G.R.E.A.T Program, which is a free training program for real estate agents to show them how to be successful with online marketing.
• If you’re buying a home you will, more than likely, visit several properties before making a decision. It’s important to find an agent that will be available to show you homes on your schedule. Furthermore, you want to look for an agent with exceptional negotiation skills so that when you do find your dream property your agent can negotiate the best price for you.
• Consider a real estate agent that can provide you with…
Guaranty Trust is so excited to feature some wonderful families who have successfully refinanced their home mortgages with GTC and benefited from the monthly mortgage payment savings! Of course, these are just a few of the many success stories we’ve seen over the years of helping people not only realize the dream of home ownership but then managing their loan and helping them make smart decisions concerning refinancing when rates are low.
Do you have your own success story to tell of your experience with Guaranty Trust? Please share your story in the comments of this post! Even if you have yet to do business with Guaranty Trust, leave a comment to be entered into our drawing! To be considered for the monthly drawing for a $100 Amazon.com gift card, leave your name in your comment (and some love for GTC) and make sure you include your email address in the comment form. Monthly random drawings will be held (via random.org) from the comment submissions on August 1, September 1, October 1 and November 1, 2012. One entry per person. Winners will be contacted via email and announced here on the Guaranty Trust blog.
If you would like more information about purchasing or refinancing a home and experiencing your own success story, click HERE to fill out our 5 minute free, no obligation pre-qualification form.
Don’t forget to LIKE Guaranty Trust on Facebook and FOLLOW us on Twitter!
Here are our featured Success Stories!
“Thanks to Angy Farris with Guaranty Trust, we had the opportunity to refinance our home and save almost $470 a month! We are so grateful that the Lord has brought them into our lives. Refinancing has turned a burden into a blessing. The money we are saving allows us to contribute more to our church, which is near and dear to our hearts. We will also be able to take our family on vacation this year. Our family would just like to say Thank You to everyone at Guaranty Trust!” - Thomas and Jennifer Watts
Here is an excerpt from a Forbes article titled “The Perfect Loan File”
“The media has it all wrong – securing mortgage approval and satisfying credit underwriting guidelines are not the difficulties plaguing mortgage consumers. It’s in meeting the rigorous documentation requirements that most people fall flat. The good news is, the fix is simple. Just scan, photocopy, fax, and deliver every aspect of your financial life. Then, shortly before closing, check everything again.
Mortgage consumers who enter the mortgage approval process ready to battle their chosen mortgage lender will come out with a nightmare story to tell. As the process, requirements, and guidelines are the same for everybody, your mindset is the game-changer. Accepting the redundant documentation necessary for lender approval will make everyone’s life easier….”
Click here to read the rest of the article and learn some tips for a successful and stress free loan approval process.
A veteran can purchase a home with -0- Down payment. The home loan amount does have a maximum limit depending on what state you live in.
For Eligibility Frequently Asked Questions, click HERE. If you were in the service, but you are not sure if you would qualify for a VA loan, here are the General Rules for Eligibility. If you currently have a VA loan and are thinking about refinancing to a lower rate, this can be done with little costs. For more information, contact me by email at shearer.spears@guarantytrust.com or phone 615.907.2628.
Do you have an FHA loan currently? Are you unsure whether you do or not? Whether you do or not, the changes made by the Federal Housing Administration (FHA) could impact you.
Several times a week I find myself having a conversation with a client who is inquiring about refinancing their mortgage to take advantage of the low interest rates we currently offer, and they are not sure whether their loan is backed by FHA or not. If you fall into this category, there is a simple way to find out.
When going through the qualification and underwriting process, calculating and verifying your income is one of the most important things a lender will look at before fully approving your loan. Having sufficient income to qualify for the loan is the backbone for insuring that you will be able to make the payments on the new loan.
Lenders use the term debt-to-income ratio (DTI) to determine if your income is within program guidelines when compared to your current monthly debt and the proposed new monthly mortgage payment, which includes principal, interest, property taxes, and insurance (PITI).
There are two different types of ratios that your lender will look at when going through the underwriting process to determine if your income meets the guidelines for the type of loan you are trying to acquire.
1. Housing or Front End Ratio
• This is calculated by dividing the proposed PITI by the gross monthly income for all borrowers on the mortgage
• The ratio should fall between 28% and 31% for most loan programs
2. Total Debt or Back End Ratio
• This is calculated by dividing the proposed PITI and all monthly consumer debts reported on the credit report by the gross monthly income for all borrowers on the mortgage
• Most loan programs require that the ratio fall at or below 45%
Realtors, register now for this FREE Facebook Training through the G.R.E.A.T. program.
Thursday May 3rd 9AM-11AM. Location: Guaranty Trust Company
This training course is best for those who already have a Facebook fan page for your business OR attended the Facebook 1 training two weeks ago.
- We will be taking questions and doing a refresher from Facebook 1.
- Applications to add to your Facebook fan page, how to do it, and how to customize the way the apps appear on your timeline.
- Content Ideas: we’ll give you some ideas of sites to watch and show you how to actually post content. We’ll also refresh on hootsuite and how to use it.
- Timeline Cover design- we’ll introduce a free tool at timelinecoverbanner.com that will help you design your own customer cover image for free.
- Facebook Advertising- you’ll learn about the different types of Facebook advertising and how to launch your first affordable ad campaign.
GREAT Training Program, Ethics Training, Staging Tips, and Facebook Customer Timeline Cover tool!
Don’t miss out on the incredible opportunities for Real Estate Agents like yourself through GTC’s GREAT program. GREAT provides free training sessions that include various social media topics such as Facebook, Google Places, etc. as well as topics related to your use of our E-Properties solution for helping you sell more and earn more! To learn more about being a part of this program, just click this link and fill out the quick online form. One of our loan officers will contact you.
Need to fulfill your Code of Ethics training requirement? National Association of Realtors has some online training courses if you’re a member.
Photo from HGTV.com
15 Secrets to Home Staging- great photo slideshow and article to pass along to your sellers from HGTV.com
In the month of May, Guaranty Trust Company, a mortgage company owned by Volunteer State Bank, will be moving to a new location. GTC has currently been at the Winston Hills Retail Center for the past 5 years and is moving into the new location of the recently built Volunteer State Bank in Hendersonville at 323 East Main Street to better serve our customers and have better parking facilities. Guaranty Trust staff will be located on the 2nd floor of the new bank location on the corner of Maple and East Main – across from the City Hall of Hendersonville.
Kaye Fought Clark, Vice President, Branch Manager, Jeff Byrd, Senior Loan Officer, and Kara Bennett, Senior Processor for the retail division of GTC will be located upstairs in the new bank building. They have been with GTC for 7 years. Also, Melanie Majority, Senior Underwriter for GTC Wholesale division and Stacy Eubank, Loan Account Manager for GTC Wholesale will be moving into the new bank building upstairs….
As a Real Estate Agent, you can be certain you’ll receive calls from panicked homeowners who want to sell their home because they owe too much, or falsely believe it is better to rent than to experience their home’s value decline in a soft market. Fearing the worst, some homeowners want to just get out from under their mortgage…right now!
For homeowners that owe more than the value of their home, selling may not be an option right now. Guaranty Trust is offering the HARP2 refinance program. As a Realtor, you may be in the first position to recognize and recommend this solution to your clients. The HARP product allows a homeowner to refinance into a better rate, and at higher loan to value than any current conventional or government loan does now.
Right now, you may be asking, “what does that do for me?” Well, it is all about the care and feeding of our clients….good advice goes a long way to protect that relationship for future business. There are some guidelines to qualify…here’s the primary list;
I’m asked this question all the time. “How much can I shorten my mortgage by making bi-weekly payments?” (Not to be confused with bi-monthly payments, as the savings are not the same.).
Bi-Weekly payments by definition means you are paying ½ of your payment every TWO weeks, so you’re paying part of your principal early, AND you’re making two extra payments a year, which can reduce your 30 year term by years. Bi-weekly payments can also take your principal balance down faster, even if you don’t plan to stay in your home for 30 years.
See for yourself with this quick calculator I found…Just plug in your numbers and see how much you can save! ...
Imagine, getting into a home for $100 down! Yes, its true, there are some HUD foreclosed properties where a buyer can purchase a home for just $100 down! Before you rush to make a bid on one, there are some stipulations to that program you’ll want to be aware of:
1. This $100 down program is for HUD “Insurable” properties only, not the UNinsured properties that are sometimes available thru HUD. ‘Insurable’ properties are usually in satisfactory condition or can be made that way, with repairs that total less than $5,000.
2. You must be the occupying owner for this product. Investors are not eligible.
3. Your bid must be for the full asking price and your Realtor must state the bid is for the $100 down program. This means you may have to pay out of pocket at closing for upfront mortgage insurance and some closing costs. But in most cases you will not have to purchase, an appraisal, termite inspection, or even a home inspection. HUD usually has these items already completed.
There are several misconceptions on building credit floating around in the mortgage industry. Below are a few ideas that may be effective in building up a credit score in as quick a manner as possible to help obtain a mortgage with having a better credit score.
1. Personal Loan and CD: Open up a Certificate of Deposit of a small amount – let’s say $500 and then ask for a personal loan of $250 (half of the CD amount) Tell the bank you are trying to build up your credit. The trick is – do not spend the money – use the money to pay back the loan – say within a two – three month period. Then you will have a positive credit line on your account that you paid off within a short time period…..
Guaranty Trust has decided I need to become a Social Media Ninja, which will not be an easy task. I am now on Facebook where I occasionally post pictures of my husband, children, grandchildren, and my two precious dogs. I post a quote I feel the world should know about ...and….. I look at my Facebook friends’ pictures of their husband, children, grandchildren and precious dogs and read a quote they feel the world should know about. I am on twitter. I look at twitter to see what amazing things my children and grandchildren are up to on a daily basis. I am on LinkedIn. At this point, I just keep linking in with people I don’t know, but I know someday I will get it, I’m just not there yet.
I was required to write three blog posts a year, yes baby steps . After my first blog post last month about our dirty little secrets, I was then asked if I would post to the blog once a month on our website about my secrets. I agreed because there are so many stories to be told about what goes on behind the scenes that I feel real estate agents and consumers alike need to hear…to help me, help you, get to the closing table in a timely manner….
“Staging” your home…Does it really help your home sell faster?
You’ve cleaned your home and mowed the lawn…Are you ready for the new “it must be perfect” buyer’s market? A few simple steps to stage your home could payoff in not only a fast sale but a top dollar sale. First, visit some model homes, and talk to your Realtor for ideas, then get to work… Here are a few tips to remember;
1. Clean, Clean, Clean…especially bathrooms and the kitchen, and any pet odors that may exist.
2. Fix anything that doesn’t work…Have you been listening to a dripping faucet or looking at a crack in the wall?….You’ve gotten used to it, but a potential buyer will pick up on everything you’ve overlooked or forgotten about.
...
I work with realtors everyday so I see firsthand the processes that you go through when helping a customer sell their home and/or purchase a new one. It’s not just writing a contract and you’re done! Realtors coordinate everything between the buyer, seller, home inspector, title company and of course the lender.
Have you ever thought about how important something as simple as a soft pull credit report can be? First, let me explain the purpose of this report. Lenders will typically pull the report 24 to 48 hours before the loan closes to make sure the borrower has not gone out and made any new purchases so, we are looking for inquiries that might affect our borrowers debt ratio.
When my processor comes to my office with a soft pulled report in her hand, my first thought is ...what did they go out and buy? A car? a refrigerator ? maybe a washer and dryer? They all think that is a must now that they are going to be homeowners right?
Well, no, none of the above ...how about a brand new… collection!! Now that is something that gets my heart racing.
From the listing – to the closing, everyone involved wants it smooth. So here’s a few tips for that “Smooth-Selling”!
- Listing the Property – Encourage the seller to minimize furnishings, from floor to ceiling. Open, airy space is best! The buyer wants to be able to picture their family in the home. For great information from NAR on staging a home to sell, click HERE.
- Showing the property – Introduce the home, point out the GREAT things about it, and step back a little. Allow the buyer to explore on their own. No one wants a sales associate walking around the store with you while you’re shopping. Remember when showing a home, your safety is also important. Watch this informative video for safety tips.
GUARANTY TRUST G.R.E.A.T. PROGRAM
OPEN HOUSE LUNCHEON
FEBRUARY 22
11 AM TO 1 PM
Guaranty Trust announces the G.R.E.A.T. program open house luncheon.
The Guaranty Trust GREAT program provides marketing tools and training to help Real Estate Agents enhance their marketing techniques and grow their real estate business…
Special Funds are available in the City Of Murfreesboro by the City of Murfreesboro. The borrower does not have to be first time homebuyer. The grant amount can be up to $14,999 in certain census tracks, including 409,410,411,412,413,414 & 421, and has to be a foreclosed and vacant property. In some cases, this grant can be added to an additional grant of $10,000, which requires the buyer to be a first time homebuyer…
As I was closing out my 2011 files and getting ready for 2012, I took a quick glance back through the year. This is always a fun time of year for me, I am able to revisit some of the buyers’ files that bring back some great memories, especially of those grateful first time homebuyers.
Something I noticed was the large increase in property flipping. We are seeing more and more local investors coming into the market and making a difference in our communities.
For a first time investor, the first property flip can be a little intimidating when dealing with the lender.
Here is a list of basic rules that will help with your first flip….
Everyone had a blast at our Christmas Breakfast Party this year. As part of the fun, we had a prize wheel each employee could spin for a $5 donation to our Angel Tree fund. Angel Tree is a local ministry through the Salvation Army that provides Christmas gifts to about 1,300 children in our community. With all of the donations, we raised about $600 and were able to sponsor 5 Angel Tree children….
Buying a home is not only a big financial commitment…but it’s also a personal decision that is unique to everyone….Be sure you’re ready. Check out this video….if you need more help call on us anytime.
The Credit Report companies used for determining credit risk for the mortgage industry is about to get more personal. When this happens consumers will be evaluated on their cell phone payment history as well as their utilities payment history. While this is an improvement for buyers…
Check out this easy and fun mortgage payment calculator! Just drag the bars to match your principal amount, interest rate, and loan term to see your payment amount.
Guaranty Trust Company’s home office is located in Murfreesboro, Tennessee. We are very happy to be a part of the growing community of Murfreesboro. Beginning this month, the city will celebrate the Bicentennial for 13 months. Each month will have a different emphasis that influences the festivities…
Everyone here at Guaranty Trust had a great time at the Mustache Bash celebrating the upcoming weddings of Adam and Lane as well as Matt and Emily. Adam works in our set up department, and Matt is a loan account manager. Check out the photos below of the party!
The Guaranty Trust G.R.E.A.T. Program is a marketing and training program designed to provide Real Estate Agents with marketing tools and techniques to enhance their real estate business. Find out how this lead generation program can save you money.
G.R.E.A.T. Guaranty Trust Real Estate Agent Training
The program includes systems and training for:
- Enhancing and Maintaining Listings
- Winning New Listings
- Finding Qualified Buyers
- Social Networking Technology
- Marketing Programs
- Referral Generation Campaigns…
When I meet with borrowers, I am often asked questions about title insurance. Many borrowers don’t understand what title insurance does and why it is required.
Unlike home insurance and car insurance which focus on hazards that haven’t happened yet, title insurance is protection against loss from hazards and defects that happened in the past.
The title insurance company will search land records going back many years. They research transactions in which the property has been transferred from one owner to another. This history is considered to be the chain-of-title. Title companies will search for any defects or weaknesses in the chain of title. These weaknesses may include:
Now you are probably wondering what USDA has to do with a home loan? Well USDA offers a very special mortgage program that allows 100% FINANCING, NO DOWNPAYMENT OPTIONS. Guaranty Trust is one of the top lenders for Rural Development Home Loans in the Great State of Tennessee!
Program Highlights Include:
• 100% Financing
• Low Monthly Mortgage Insurance Premiums
• Seller Can Pay All Closing Costs
• Great Interest Rates
• Flexible Credit Qualifying (No Credit Scores Accepted)
• 30 Year Fixed Rates
• Generous Income Limits
• First Time Homebuyers Welcome
Guaranty Trust has seen several new babies born recently! The most recent is Jessica Vincent’s little boy, Colton, was born at 11:51 A.M. on Saturday 8/20/11 weighing in at 7 pounds 13 oz. and 20 inches long. We are so excited for Jessica! Here is a photo of sweet Colton!
You’ve heard it can save you $100s per month in your payment…but you wonder, what are the facts…and would an initial interest only payment work for you?
With an interest-only mortgage loan, you pay only the interest on your mortgage in monthly payments for a fixed term. Usually the term is 5, 7, or 10 years. At the end of that term, you’d either refinance, pay the balance in a lump sum, or start paying off the principal, in which case of course the payments would increase. You won’t build equity in your home loan during the interest only term, unless you make principal payments; But in a strong market your home’s value can be expected to increase…
I get this question all the time. What can a seller pay towards my closing costs? Here are just some of the ways to figure this. If you are doing a conventional loan and are only putting down 5%, the seller is limited to pay only 3% towards your closing costs, points, prepaid items and title. But, if you are putting down 10% or more, the seller can pay up to 6% towards these same items. FHA will allow the seller to pay up to 6% towards closing costs, points, prepaid items and title regardless of the down payment. A VA loan does not have a maximum amount that the seller can pay towards a buyer’s closing costs. Also, Rural Development does not have a limit on what the seller can pay for the buyer’s closing costs, pre paid items, points and title. If you have questions, please leave a comment, and I will be happy to help!
United Way representatives were in the office today as we prepare for our United Way campaign next week. They presented Wendell, GTC President, with the Gold Award for the exemplary support GTC has provided United Way. We are so proud to partner with this organization that has touched 1 in 3 people in our community!
In an email to one of our Guaranty Trust loan officers, Shearer Spears, Brett Tritch wrote:
“You were awesome throughout the home buying process and drastically exceeded our expectations in all areas! You were extremely responsive to our every need from our initial conversations on through to closing on the house and went above the call of duty with even attending our closing to ensure that everything went smoothly. I can’t say enough about the speed with which you closed our deal as well. Knowing that we were in a time crunch you wildly exceeded our expectations by closing our deal from start to finish in only a week and a half which saved us big time in not having to move our belongings into storage and not having to obtain temporary housing; thanks to your efforts we were able to move straight from our old house into our new house with no delays! I can’t thank you enough for that. Aside from being great at your job you are also a great person to work with, extremely personable and caring. I would recommend you to anyone!”
In celebration of the recent launch of the Guaranty Trust blog and Facebook page, we are giving away an iPad 2! Everyone here at Guaranty Trust is excited about connecting with our customers in new ways.
The blog is off to an amazing start. We hope that the Mortgage 101 post category will be a helpful resource to those looking to buy a home and needing to learn about the mortgage process.
We have created a Facebook fan page for our mortgage customers, realtors, and other business partners. On this page, you’ll find the most recent and relevant mortgage news. Most importantly though, this is a place to connect with you and be an available and convenient resource to meet your mortgage needs.
Now, on to the giveaway details! Here’s how to enter:
For years, everyone that has ever thought about purchasing or refinancing a home has had this question and gone to great lengths to avoid the “monster” called mortgage insurance, or, sometimes referred to as PMI (private mortgage insurance). However, in today’s housing market where we have all experienced declining home values, mortgage insurance has become commonplace and necessary to allow homeowners and potential homeowners to obtain financing for a new home or refinance their existing loan with the very low interest rates that are being currently offered. Mortgage insurance is a default insurance for the lender, and unfortunately, the lender passes this charge on to the homeowner. Standard lending guidelines dictate that a lender’s maximum exposure in any loan cannot be more than 80%. With mortgage insurance placed on the loan, the lender is protected and thus, is willing to lend as much as 100% of the market value or purchase price of the home…
Melanie Little works in the Wholesale Set Up department. She had to have been the cutest pregnant girl, so tiny. She has such a sweet heart and makes the most adorable hair bows for little girls. Her little guy, Christopher Thomas Miller was born July 16th and weighed in at 5 lbs 8 oz. Here is a photo of Melanie at the baby shower thrown by her friends at Guaranty Trust and a photo of sweet Christopher!
So you’re ready to take the plunge? The All American Dream of homeownership! Wait! How do you know how much home to look for, if you don’t quite know what you can afford? This is a common concern that reflects you’re using the smart approach in reviewing this investment so that you don’t get over your head in financial obligations.
When applying for a new home loan, your loan officer will need to verify your assets, and more specifically, your liquid assets. The lender needs to verify assets to make sure you have enough money to cover the cash required at closing which includes down payment, closing costs, and prepaid items; as well as the total reserves required for underwriting approval.
Types of Allowable Assets:
• Checking and Savings Accounts
• Earnest Money
• Stocks
• Bonds
• Investments
• IRA/401(k)/retirement accounts
• Gift Funds
• Selling non-liquid assets
Guidelines for loan programs that require asset verification require that the lender source and/or season the assets. Sourcing assets means that you can verify for the lender where all of the funds came from. Seasoning assets means that the lender can verify that they have been in the account for at least two months….
Why is the APR on my Truth-in-Lending disclosure higher than the note rate?
The difference between the annual percentage rate (APR) and the note rate is very confusing especially for first time home buyers. Actually, even seasoned buyers have difficulty understanding the difference between the two numbers.
The interest rate is the rate a lender charges a borrower for use of money for a specific length of time. The interest rate, loan amount, and loan term determine your monthly payment. The APR does not affect your monthly payment….
The Mortgage Industry has changed over the last several years regarding various loan program down payment requirements.
There are 4 basic loan programs. Each has its own unique down payment requirement.
They are as follows:
VA is a 100% loan for Veterans and do not have a down payment.
Rural Development is a 100% loan to qualified buyers.
FHA requires a 3.5% down payment.
Conventional requires a 5% down payment.
Many borrowers worry about not having the funds to purchase a home. Don’t give up on your dream home without knowing all of the down payment assistance options available to you whether you are a first time homebuyer or buying your fifth home!
Adam Booten works here at Guaranty Trust, and he actually just bought a home! Here is a Q&A to help you get to know Adam a little better. Make sure and comment to give Adam some love!
Did you know that the most important factor in choosing the right loan is NOT always the interest rate ??
Many customers that I speak to concentrate heavily on getting the lowest interest rate possible in the market today, and completely ignore what they are actually paying to get that rate. We all want the lowest rate possible, but you must always factor in the closing costs you are having to pay or finance in the loan to tell if this lower rate is the best option for you.
Guaranty Trust is trying to get valuable information out to all homeowners who are contemplating a refinance and are not sure if now is the right time. We have all heard that when you inquire about a refinance, you should try to reduce your interest rate by 1-1.5% for it to be financially prudent. This is no longer the case. Because of new lending standards and guidelines put into effect by the Federal Government, closing costs on refinance loans are MUCH LESS than what they used to be. The result is that you are able to recoup the closing costs in a much shorter time period, thus, you do not need as much of an interest rate reduction to make it worthwhile.
Above and beyond interest rates and closing costs, there are 3 much more serious factors that EVERY homeowner needs to take into consideration:
Hi, I’m Lori Clark, the Branch Manger and a Sr. Loan Officer with Guaranty Trust Co. Since this is my first blog post, I think a good place to start is to address first time homebuyers. I get calls every day from buyers with questions about the mortgage process or even looking for a local realtor. Don’t feel overwhelmed by all of the scary stories others may have shared about their mortgage process- your loan options are unique to you! I can assure you that when you work with someone that is knowledgeable about the programs that are available to first time homebuyers you will have a smooth closing!
Congratulations!….You’ve decided you’re ready to buy a home, and you’ve heard horror stories about CREDIT- nightmares that you’d rather avoid. Well, the first step to being at peace with your credit is to understand it.
Ryan McCormick is a vital member of the Guaranty Trust family. He handles everything related to technology here at GTC so, you can imagine how important he is to our work. He and his wife just had twin baby girls yesterday, Adleigh and Claire. Isn’t their photo cute? Here is a video from the baby shower we had for the McCormicks, including their son Jace, last week. Talk about cutting it close! Congrats Ryan, your girls are beautiful!
There are many different definitions for a mortgage. But to put is in simple terms, a mortgage is a loan that is secured by a property or house and paid in installments over a set period of time. The mortgage is your promise to the lender that the money borrowed will be repaid.
What are the Components of a Mortgage?
I am absolutely thrilled to be celebrating the 25th anniversary of Guaranty Trust Company. The years have flown by since I started this business back in 1986. I recognized a real need for service in the mortgage lending industry and founded Guaranty Trust to fill that need and provide unparalleled service to its customers. We are still doing this today, 25 years later, because of our tremendously talented employees who are like family to me.
Thank you for visiting our blog! We are new to this so please be gentle with us.
By you being here we are betting that you are looking for some information in regards to a purchase or refinance of a residential property and with 25 years under our belt of financing home loans…we have plenty of information for you. Here are just a few items we can help you with:
©2013 Guaranty Trust. All Rights Reserved.