In Georgia, home and construction loans are available, but there are various factors that the loan seekers need to look at before making a loan decision. One of the elements that need to be considered is the cost of the loan. Some brokers and lenders charge fees and or points that may add considerably to the full cost of the loan. Some professionals suggest that paying points to avail a lower interest rate may not be the smartest thing to do because the majority of the homeowners do not retain the home long enough to earn the difference between the lower interest rate and cost of the points.
Following are some tips for you to apply for a home or construction loan in Georgia:
A Fixed Rate Mortgage Can Save Your Home
When you find a construction loan in Georgia or a home loan, be sure to insist on a fixed rate mortgage, not an ARM. A lot of homeowners are losing their homes to foreclosure as they were attracted into a loan with low-interest rates up front. When the ARM regulates many of these homeowners, who can’t afford the new payment and ultimately lose their home. Don’t allow any broker or lender to convince you that the ARM is the best way to go because it provides you with low interest up front and refinancing later. Refinancing of a new ARM loan is usually tricky because it doesn’t offer you with enough equity to get a new GA home loan.
Discuss with the lenders about a fifteen-year mortgage with a fixed rate. It will help you save most of the money when the bottom line is totalled. If you don’t find 15-year mortgage option, then take a 30-year mortgage and opt for a lump amount at closing and one extra payment each year. This step can save you 15 years’ worth of interest that is a significant amount indeed. Moreover, it applies whether it is a Georgia refinance loan or new loan.
Georgia has announced exclusive loans for first-time home buyers that targets the following counties:
Carroll, Barrow, Butts, Bartow, Clayton, Cherokee, Coweta, Cobb, Dawson, Douglas, Dekalb, Fayette, Fulton, Forsyth, Gwinnett, Haralson, Henry, Heard, Lamar, Jasper, Newton, Meriwether, Paulding, Pike, Pickens, Spalding, Rockdale, and Walton.
There are particular income requirements, based on the number of persons in the home, for these exclusive mortgage loans of Georgia be sure to request the lender to find out the specifics for you.
Furthermore, there are also some special loan offerings for non-first-time buyers in various Georgia counties, which were subject to flooding a few years ago, it might be of interest for those who can’t qualify as a first-time buyer.
Before you plan to apply for a loan, make sure to clean up your credit report. A significant credit score can save you thousands over the life of your Georgia home loan. There are various items on your credit report that can be cleaned up without any assistance, but, if there is a strangely difficult one, a strategically designed “do it yourself program” is well worth the expenditure. You must not pay a high priced service. When you have cleaned up your credit report then proceed with your loan application with an understanding that you will be able to get the best rates possible.
Negotiate Strategically with Lenders
Another crucial factor when constructing or purchasing a home in Georgia is to avail the best deal on your plan. Remember, it is a buyer-centric market, so never be timid about offering a lower price for the property you are interested in purchasing and negotiate to acquire exactly what you want. The homeowners know that if they reject your offer, it may be a long time before they sell.
After you have negotiated your best home purchase or renovation deal and cleaned up your credit report, you are now ready to move ahead with your required lender at the best rates available on Georgia home loan. Deal with your home construction or purchase seriously and don’t let other creditors, such as credit card firms, cause you to delay or miss a payment. After all, you can’t live under your bank lobby or credit card. Protect your home loan mortgage at all times and enjoy living in your dream home in Georgia!
The author is John Peterson working as a professional writer at a mortgage firm in Georgia. He works specifically on property loans and construction loans. He was born in Fullerton, California in June 1990. Since childhood, he has been collecting inspirational paintings, and this is his hobby.