Spend Time on the Financing!

Financing has become the make or break factor for many real estate transactions. As important as it is to the overall purchase of a home we are seeing less time spent on the actual specifics of financing. Today we had a one hour class taught by one of our mortgage brokers. She wanted to review a Pre-App Worksheet, HUD form, and various funding fees for conventional, USDA, FHA, and VA mortgages. Did you know? • On an FHA loan that the maximum contribution from a seller, for closing cost, is 6% of the purchase price? • A lender can pay mortgage insurance by putting it in the loan? • On a 90% Conventional loan the maximum contribution from a seller, for closing cost, is 3% of the purchase price? • On an FHA loan the Tax Service Fee is always $83? • The lender makes their money from the origination fee and the admin fee only? The items listed above are a few of the many factors current today and for the state of Georgia. One thing is for certain: They will change! The reason I listed the above items is to emphasize how important it is for your buyer to meet with a mortgage representative prior to starting their home search. Why? Because the mortgage representative can offer a variety of mortgage products, closing cost, rates, and terms that work to the advantage of that buyer in that environment. The Wells Team has a good relationship with many lenders in the Atlanta area. As part of our customer service we require our buyers to sit down with the lender of their choosing and work together to put in place a comprehensive financial plan. The result: A successful buyer experience!