Finding The Best Georgia Mortgage For You

Years ago it was so easy to get a Georgia mortgage loan! Anyone with a steady job and decent credit could pretty much pick and choose when it came to any home in their price range. However, with the recent collapse of the financial industry as we knew it, and the downfall of the real estate market, those days are gone forever.

Of course, lenders are not turning away everyone, but they are turning away people who would have been approved overnight only two years ago. Today you need miles and miles of documentation, paperwork, forms, statements, IDs and a credit history straight from a fiction novel, and forget about getting a 'no doc' mortgage!

Another thing you won't find any more is the ability to borrow extra money to pay off your debts. In the past, if your debt to income ratio was too high, banks would add this on top of the amount needed for the mortgage loan. This is now almost unheard of. If you owe too much money, you most likely won't qualify for the mortgage.

Even down payments have little negotiation room. That's where banks caused their own problem, and how you are going to pay for their mistakes. Without a sizable 20% down, your lender knows you have no financial stake in the property and their risk level will be too enormous to take on. Don't assume that because homes have dropped in value that your down payment isn't all that important. A $200,000 home selling at 50% of its original value is still going to require a $40,000 down payment!

If you can show them you have excellent credit (most banks want to see something well over 800), steady income, and plenty of money in the bank after your down payment and closing costs, you might be in luck. Each lender might have different requirements and some even have different definitions. Don't assume anything; make sure you know what you're dealing with before filling out the actual application.

As opposed to only a few years ago when banks merely asked for three months of bank statements to prove a reliable income stream, they now ask for one to two years of statements. This actually could be to your benefit since if you had a few months with decreased income due to a layoff or similar situation, it gives you the chance to show a recovery period afterwards. If you don't tend to keep your bank statements for long, see if you can print them out from online or pay a fee and have the bank send you duplicates.

You will most likely be asked for one to two years of financial statements. These include checking and savings accounts, brokerage accounts, cash value insurance, etc. If you don't have these readily available at home see if your bank can send duplicates, usually for a fee.

When talking to Georgia mortgage loans lenders, get as much information as possible up front without giving them an application fee. In many instances, these fees are non-returnable if you aren't approved. If you happen to be dealing with a mortgage loans broker, just remember to ask many questions and make sure that you are comfortable with the home mortgage you are considering. It is important to know all the facts in order to make an educated decision.