The Decatur Old House Fair

A day-long celebration featuring new ideas, practical advice, innovative materials and quality services for old-house owners.

March 19th, 2011 – 9am to 5pm

Details available at: http://www.decaturoldhousefair.com/overview10.php

Holiday Inn Decatur
Conference Plaza
130 Clairemont Ave.
Decatur, Georgia

Can I get a mortgage?

Getting a mortgage today is easier for some than ever, and essentially impossible for others.  Let me break down some of what is happening in the industry today.

To obtain a mortgage you will need a salaried income or 2 years verified tax returns (adjusted gross income).

As a general rule, FHA is insuring the bulk of the mortgages being executed in the market.  Most lenders have overlay guidelines resulting in 640 being the minimum credit score accepted for a FHA loan.  FHA guidelines provide for a 3.5% down payment – which is the lowest option in most markets.

If you have better credit – something like 680 or higher – you probably qualify for conventional financing.  In most cases, you would be required to put down at least 5% of the purchase price to qualify.

For those with stronger numbers – 700 or higher, I have one lender who can do a conventional product that only requires 3% down.

Similarly, if you have a little more money down, I know of a lender than will do FHA financing for people with credit scores in the 500′s.

If you are self-employed, it is nearly impossible (even with 50% down).  The only way to qualify is with 2 years of tax returns.  Most banks are taking either the average of the two years or the last year – whichever is lower – as your “income”.  The banks are using adjusted gross income as the number to work from with rare exception.  They will allow additions for things like depreciation, but not much else.

If you are a 1st time home buyer, are buying in certain areas, or will only own one property and it will be your primary residence, there are a number of down payment assistance programs in the market.  These are unique – typically to your state, county, and possibly city.  If you buy a HUD home, there are programs where you can buy a home with as little as $100 down.

The market is changing daily.  Contact your real estate professional for a referral to a mortgage expert in your area.

Understanding Mortgage Rates

Mortgage rates – like home prices – vary with a number of factors.  This industry is changing daily, and the impact on the housing and financial markets is unparalleled.

For a base rate, try a site like bankrate.com.  This site allows you to put in your zip code to determine what rates are like in your area.  Pay attention to fees and discount points to be sure you get the whole picture.

Traditionally, if you were approved for a mortgage, the rates you see on such a site would be very close to what you actually paid.

This is NOT a traditional real estate or mortgage market!

Today, the rates you see on sites like bankrate.com are base rates – and they assume near perfect credit, significant cash down, salaried income, and no credit issues – ever.

Financial institutions now charge – typically in interest rate additions – for any factor they consider less than optimal.  So – you can pay less than 20% down (I have a lender who will go as low as 3% conventional), but it may cost you 0.25% more in interest (as an example).  The same goes for credit tier – they may approve you at 640, but it will cost you in interest rate.

The additions for various factors are countless, and they are unique to the mortgage product, the financial institution, and the insurance products involved in a transaction.

Talk to your real estate professional for a referral to a mortgage professional who can help you gain clarity for your specific situation in this market.

How to improve your credit score

Credit score used to be king when it came to getting a mortgage. In my opinion, it has moved to 2nd place – behind salaried income. Unfortunately, there is still a lot of mystery behind how credit scores are calculated. Some will charge a fee to try to illuminate the situation, but I found a tool that will let you uncover most of the mystery for free!

If you haven’t already heard of it, Credit Karma has been around for years, and they have been mentioned on shows from financial advisers like Clark Howard. They are one of a few companies that will provide you with a periodic view of both your credit report and your credit score for free.

Each of the sites offering free access to your credit information is trying to sell you some other product – they are trying to make a living too, but it is not necessary to purchase to take advantage of the information I want you to obtain.

If you create an account on Credit Karma, it will pull your current credit report. Once that is complete, you will have access under the “My Credit” tab to a sub menu option “Credit Simulator.” This will let you play with changing your score by raising and lowering credit balances, paying off all credit cards, having an item go to collection, etc. There are a number of sections where you can add and remove items that might affect your credit, and as you make changes you can click the “Simulate Your New Score” button to discover how it is likely to affect your current credit score.

As an example, I simulated paying off all of my current credit cards – and there was 0 impact on my score. However, when I told it to add one item going to collection, it dropped my score by nearly 50 points. We all assign values to what the effect of doing something positive or negative may be on our score – but we may seriously under or over-estimate the positive or negative effects.

To get a grip on where your credit score is, and how to target the most effective improvement, give this site a try.

Breakfast with Santa

December 18 • 8-10 a.m.
Holiday Inn Select Decatur Conference Center

<!–>Click to purchase tickets

–>Tickets are $12 for adults and $7 for children under 12. Only 450 tickets are available on a first come, first served basis.

Holiday Bonfire & Marshmallow Roast

December 16 • 7-8 p.m.

Make plans to join the community and roast marshmallows around the popular 10′ x 10′ bonfire on the square. Enjoy special music and visit Santa in the Community Bandstand. Free. Sponsored by Decatur Business Association.

Season of Giving – Christmas Decatur

Saturday, Dec 4, 2010

The Season of Giving/Christmas Decatur program provides holiday gifts for Decatur’s low-income children and senior citizens through the help of individuals, families, neighborhood associations, civic groups, places of worship, and businesses to see that they have a joyous holiday season. Volunteer opportunities include working with referring agencies to process applications; publicity; matching donors with children or seniors; liaison to neighborhood associations, places of worship and other groups; coordinating gift intake and distribution; and assisting with office work (copying, sending out letters, and updating the client and donor lists).

For more information, visit http://decaturdba.com

Decatur Holiday Candlelight Tour of Homes

Fri, December 3, 5:30pm – 9:30pm

Tour a variety of Decatur’s beautiful homes and several points of interest. $20 in advance; $25 at the door. www.decaturtourofhomes.com

Decatur Wine Tasting Festival

On the square – Sat, November 6, 1pm – 4pm

Features over 300 wines from around the world for tasting. Entry fee includes commemorative wine glass and live music. Benefits the Decatur Arts Alliance. Entry limited to 2000. All tickets sold online at www.decaturartsalliance.org. There will be no tickets available at the gate.

Beer lovers will be big fans of The Decatur Craft Beer Festival

More than 100 of the finest beers – hosted by local Decatur restaurants and pubs.  Tickets are required, and they must be purchased in advance.

Fore complete details, view the event site at: http://decaturbeerfestival.org/index.php.

Saturday – October 16th – noon to 5pm – on the square.