Deciding On A Selection Of Georgia Home Equity Loan To Sign For!

Years ago it was so easy to get a Georgia mortgages! 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.

That’s not to say that lenders are refusing everyone. It does, however, take almost perfect credit and larger than normal down payments. It also requires plenty of backup documentation to verify everything on your application. No more ‘no verification’ loans!

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 Georgia home equity loan. This is now almost unheard of. If you owe too much money, you most likely won’t qualify for the mortgage.

If a 20% down payment will be an issue, you might find yourself priced completely out of the market. Even though housing prices have fallen dramatically over the past few years, your median priced home in most markets is still hovering around $200,000, bringing your down payment alone to $40,000. This doesn’t even take into consideration closing costs and residual cash the lender expects you to keep on hand for emergencies.

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.

Also, make certain you can provide every piece of substantiating documentation they can ask for. At least a year’s worth of financial documents are a must, and if you have to pay for duplicates to be mailed out, do it. Get your tax returns together, recent pay stubs, and even copies of your IDs. Be prepared for some odd questions, too, such as ‘where did this $2,627 come from?’ because if it looks suspicious, that’s just one more reason for them to turn you down.

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 you are looking for a Georgia mortgage home loan, you might be overwhelmed.  It’s ok!  Just take it slow and make sure you gather all of the appropriate info before proceeding forward with any decisions regarding your home loan.