Buyers Archives

10 Questions You Should Ask Your Mortgage Lender

May 9, 2015 by Thom Abbott

Finding the right home or condo is important. I mean this is going to be your home. Your sanctuary to get away from it all after a long day at the job. So it’s a big decision. But part of that decision is also your mortgage. Unless you are in a position to pay all cash for your home, you will need a mortgage.

10 Questions You Should Ask Your Mortgage Lender

And there is a lot that goes into a mortgage. But that is not my role in helping you find your home. Much like when you go to a doctor’s office, there are numerous people there that have a role in your visit. From the person that greets you, to the one that takes your vitals to the doctor him(her)self, everyone has a purpose.

My purpose is to help you find the right home, and get it at the right price. There’s other considerations too, but we’ll keep it simple for this topic. But when you need a mortgage, then you need a mortgage lender. And that person is a specialist in what THEY do! They know the in’s and out’s of getting you the best financing arrangements they can. But just as there are questions and parts to the home buying process I discuss and questions I answer for you, here are 10 questions you should ask your mortgage lender.

10-questions-to-ask-mortgage-lender

If you need help in getting your pre-approval ready to begin your home shopping with me, please check out our team of mortgage lenders. We have worked with these people for years, and know they will do it right for you!

More Atlanta Renters Looking to Homeownership in 2015

March 17, 2015 by Thom Abbott

More renters are looking to become homeowners in 2015, but it won’t be without some challenges.

The Zillow Housing Confidence Index has indicated that Atlanta’s renters are more confident about the housing market, and some 130,000 plan to buy a home this year. That’s all well and good, but here are some challenges:

Lack of Inventory

If those renters are looking at Midtown or Buckhead for condominiums, they best be prepared to pounce when they find one they like, and have their pre-approval with a lender in place. Limited inventory and almost no new construction on the horizon will make prices continue to rise, and the possibility of multiple bids a continued reality. All those cranes you see over the skyline are not building “For Sale” buildings, but an abundance (and maybe a bit to much) of rental apartments. So when that priced-right condo hits the market, don’t expect it to sit around for long. An inventory example in Midtown…Cornerstone Village has 310 homes, and there are currently only TWO homes listed For Sale.

Saving For A Down Payment

You have to have some “skin in the game” when it comes to getting a mortgage. That means you need to have money for a down payment. Depending on your credit and other circumstances, this does not mean you may need 10 or 20 percent down. You might qualify for other programs that will offer less money down. And you can work with parents or other family members for a potential gift towards your down payment.

Qualifying for a Mortgage

Well, yes….gone are the days of “fog a mirror, get a loan.” You need to qualify for that mortgage. If you have good credit, a job and don’t have oodles of credit card debt or a big car loan, you should be able to qualify for a mortgage. How much, is another story. (You can find our list of preferred lenders here.)

Finding an affordable home or condo

That might be the biggest challenge of all. Prices have certainly rebounded from years past. Another example in looking at Cornerstone Village. A 1-bedroom condo that sold for $78,900 in December, 2013 is now on the market at $137,000! One bedroom homes at Spire Midtown were selling in the $140-170,000 range and are now topping over $200,000 for the same homes!

But according to Zillow, Atlanta’s Housing Confidence Index hit 66.5, up some 4 percent from January, 2014. Renter confidence also climbed 4.6 percent for the same period.

Those that continue to “sit on the fence” will find that jump off more expensive!

When Should I Sell My Atlanta Condo?

February 25, 2015 by Thom Abbott

In real estate, I often wish I had a crystal ball. It would make it so much easier for myself and everyone of my clients. I could just look into it, glance up and say, “List your condo on March 2, 2015 at 1:45pm and a Buyer will find in 10 minutes later and it will be sold in 21 days.”

But, that is not the reality of real estate, is it? I have to rely on hard work, good marketing and my knowledge of what is happening in the market. Those things, combined with you being ready to place your condo on the market at a price that makes market sense, will bring that Buyer to our door.

When Should I Sell My Atlanta Condo?

But, the Buyer has to FIND something to buy! And inventory is at an all-time low! In Midtown Atlanta for example, all the construction cranes you currently see are for rental apartments, NOT for new condominiums! Yes, there is a chance they might convert in the future to For Sale homes, but if construction is underway, they most likely do not have the type of financing that will allow for a conversion right away. (NOTE: One new building, Seventh Midtown at Peachtree and 7th Streets is new construction condominiums…..prices start at $739,000 for a 2-bedroom home)

So, here are two graphs that clearly indicate the problem….

So, the Buyer’s are out there….and they are looking. But what do they have to look AT?

While these are national stats from the National Association of REALTORS, they still reign true in Atlanta condos! Many buildings that I work with, have as little as 1 or two homes For Sale, and there are some that have nothing listed for sale! Nothing!

If you are “on the fence” as to whether this is the time to sell, let’s talk. Sure, there are other factors we have to consider if you are going to sell your home! When did you buy? What did you pay? What are homes selling for now in your building? The answers to some of these questions might truly say it is NOT the time for you to sell.

But having a conversation and talking about all these factors is the only real way to know what is right for you.

My phone is right here next to me.

Atlanta Federal Reserve Lockhart sees interest rate hike by middle of the year

January 12, 2015 by Thom Abbott

Have you been sitting on the “real estate fence?”

“Should I buy or should I wait?”

Well, the Atlanta Federal Reserve has spoken….and there is almost certainty that interest rates will rise at some point in 2015.

In an address to the Rotary Club of Atlanta, Federal Reserve Bank of Atlanta President and CEO, Dennis Lockhart summed it up in the first remarks of his speech….

As I look back on 2014 and look ahead to 2015, I can comfortably assert that, more and more, the U.S. economy is hitting on all cylinders. The recovery that began in 2009 is well-advanced, and we are getting closer to a point where the Fed’s Federal Open Market Committee (FOMC), the body that formulates monetary policy, can begin a process of normalizing the interest-rate environment. That process will begin with so-called “liftoff”—that is, the first increase in the policy rate.

So, perhaps we might want to jump off that fence….a minor increase in interest rates can change what you might qualify for in your mortgage!!!

Can I Afford a Mortgage In Atlanta?

January 8, 2015 by Thom Abbott

When you search for your new, or next, home or condo, there are probably two major things to consider….The house/condo itself, and your ability to buy it. Don’t get me wrong, there are many other things to look at, from location, to schools, amenities, the condition, maintenance, etc. But all of these things circle around finding the home and affording the home.

Can I Afford a Mortgage in Atlanta?

If you have recently reached out to a real estate agent, you may have very quickly been asked the question, “Have you been pre-approved for a mortgage?” Some buyers are put off my this kind of hard question being asked right at the start. I always tell buyers, there are two reasons for that question:

With limited inventory, Sellers are looking to make sure it is a qualified buyer that is making an offer on their home or condo. They are not going to want to take a contract on their home, and THEN wait for you, the Buyer, to get your financing approved. So by having a pre-approval, this indicates you have already spoken with a lender, provided them with financial documents and employment information so they have been able to qualify you for your mortgage.
When working with a Buyer, the last thing I ever want to do is show you a home, and then find out you don’t qualify for a mortgage large enough to purchase the home. Having that pre-approval gives both of us the boundaries if you will, to know what price range to look in.

I also tell my Buyers that you have selected me as your real estate professional because I know the market and know Midtown Atlanta. But I’m not the money guy….that is the responsibility of your lender! But, I do work as a team with the lender to get them the information they need (contract, HOA info, etc) to make the process move smoothly.

But in this changed real estate world, many Buyers think they can’t get a mortgage and don’t even start the process. Well, mortgage rates are still at all-time lows….and there are all sorts of different programs that may be available to you.

Just look at this information from one of our preferred lenders, Brian Dover with Sharpe Mortgage!

Let’s get you pre-approved, and into that new Intown Atlanta home or condo while these rates are great!

Working with Thom Abbott and MyMidtownMojo.com

December 20, 2014 by Thom Abbott

Real estate is the industry, or business that I work in. My job really is in marketing. Especially for Sellers. But when it comes to working with Sellers or Buyers, I consider my clients my friends. And when you help your friends, you want to make sure they do the right thing, or get the right thing.

In helping my clients find the right home or condo, my joy comes from seeing THEIR joy when we find the “this is it” house, and we make it through the home buying process and they now have a great place to call home.

Such was the case of working with Randy and Sarah. Not only was it a fun process, but I know we will be friends for years to come. Thanks for letting me help you find your perfect first home!

My husband and I just bought our first home with the help of Thom. As you can imagine, our ideas and priorities changed quite a bit as we continued through the search process. He was so patient with us as we figured out what we loved. One of Thom’s greatest strengths is his ability to really listen to his clients and make adjustments to his suggestions based on your priorities. He easily builds rapport, and cares about getting to know his clients on a personal level. It is clear that he always has his clients’ best interests in mind, and is willing to go to bat to protect them if needed. To Thom, this isn’t just a job, he is genuinely interested in helping you find the home of your dreams, and that passion is apparent in every interaction.

Sarah

10 Questions You Should Ask Your Mortgage Lender

Lack of Inventory

Saving For A Down Payment

Qualifying for a Mortgage

Finding an affordable home or condo

When Should I Sell My Atlanta Condo?

Can I Afford a Mortgage in Atlanta?

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