Have you ever thought about how important something as simple as a soft pull credit report can be? First, let me explain the purpose of this report. Lenders will typically pull the report 24 to 48 hours before the loan closes to make sure the borrower has not gone out and made any new purchases so, we are looking for inquires that might affect our borrowers debt ratio.
When my processor comes to my office with a soft pulled report in her hand, my first thought is ...what did they go out and buy? A car? a refrigerator ? maybe a washer and dryer? They all think that is a must now that they are going to be homeowners right?
Well, no, none of the above ...how about a brand new… collection!! Now that is something that gets my heart racing.
From the listing – to the closing, everyone involved wants it smooth. So here’s a few tips for that “Smooth-Selling”!
- Listing the Property – Encourage the seller to minimize furnishings, from floor to ceiling. Open, airy space is best! The buyer wants to be able to picture they belongs in the home. For great information from NAR on staging a home to sell, click HERE.
- Showing the property – Introduce the home, point out the GREAT things about it, and step back a little. Allow the buyer to explore on their own. No one wants a sales associate walking around the store with you while you’re shopping. Remember when showing a home, your safety is also important. Watch this informative video for safety tips.
GUARANTY TRUST G.R.E.A.T. PROGRAM
OPEN HOUSE LUNCHEON
FEBRUARY 22
11 AM TO 1 PM
Guaranty Trust announces the G.R.E.A.T. program open house luncheon.
The Guaranty Trust GREAT program provides marketing tools and training to help Real Estate Agents enhance their marketing techniques and grow their real estate business…
Special Funds are available in the City Of Murfreesboro by the City of Murfreesboro. The borrower does not have to be first time homebuyer. The grant amount can be up to $14,999 in certain census tracks, including 409,410,411,412,413,414 & 421, and has to be a foreclosed and vacant property. In some cases, this grant can be added to an additional grant of $10,000, which requires the buyer to be a first time homebuyer…
As I was closing out my 2011 files and getting ready for 2012, I took a quick glance back through the year. This is always a fun time of year for me, I am able to revisit some of the buyers’ files that bring back some great memories, especially of those grateful first time homebuyers.
Something I noticed was the large increase in property flipping. We are seeing more and more local investors coming into the market and making a difference in our communities.
For a first time investor, the first property flip can be a little intimidating when dealing with the lender.
Here is a list of basic rules that will help with your first flip….
Everyone had a blast at our Christmas Breakfast Party this year. As part of the fun, we had a prize wheel each employee could spin for a $5 donation to our Angel Tree fund. Angel Tree is a local ministry through the Salvation Army that provides Christmas gifts to about 1,300 children in our community. With all of the donations, we raised about $600 and were able to sponsor 5 Angel Tree children….
Buying a home is not only a big financial commitment…but it’s also a personal decision that is unique to everyone….Be sure you’re ready. Check out this video….if you need more help call on us anytime.
The Credit Report companies used for determining credit risk for the mortgage industry is about to get more personal. When this happens consumers will be evaluated on their cell phone payment history as well as their utilities payment history. While this is an improvement for buyers…
Check out this easy and fun mortgage payment calculator! Just drag the bars to match your principal amount, interest rate, and loan term to see your payment amount.
Guaranty Trust Company’s home office is located in Murfreesboro, Tennessee. We are very happy to be a part of the growing community of Murfreesboro. Beginning this month, the city will celebrate the Bicentennial for 13 months. Each month will have a different emphasis that influences the festivities…
Everyone here at Guaranty Trust had a great time at the Mustache Bash celebrating the upcoming weddings of Adam and Lane as well as Matt and Emily. Adam works in our set up department, and Matt is a loan account manager. Check out the photos below of the party!
The Guaranty Trust G.R.E.A.T. Program is a marketing and training program designed to provide Real Estate Agents with marketing tools and techniques to enhance their real estate business. Find out how this lead generation program can save you money.
G.R.E.A.T. Guaranty Trust Real Estate Agent Training
The program includes systems and training for:
- Enhancing and Maintaining Listings
- Winning New Listings
- Finding Qualified Buyers
- Social Networking Technology
- Marketing Programs
- Referral Generation Campaigns…
When I meet with borrowers, I am often asked questions about title insurance. Many borrowers don’t understand what title insurance does and why it is required.
Unlike home insurance and car insurance which focus on hazards that haven’t happened yet, title insurance is protection against loss from hazards and defects that happened in the past.
The title insurance company will search land records going back many years. They research transactions in which the property has been transferred from one owner to another. This history is considered to be the chain-of-title. Title companies will search for any defects or weaknesses in the chain of title. These weaknesses may include:
Now you are probably wondering what USDA has to do with a home loan? Well USDA offers a very special mortgage program that allows 100% FINANCING, NO DOWNPAYMENT OPTIONS. Guaranty Trust is one of the top lenders for Rural Development Home Loans in the Great State of Tennessee!
Program Highlights Include:
• 100% Financing
• Low Monthly Mortgage Insurance Premiums
• Seller Can Pay All Closing Costs
• Great Interest Rates
• Flexible Credit Qualifying (No Credit Scores Accepted)
• 30 Year Fixed Rates
• Generous Income Limits
• First Time Homebuyers Welcome
Guaranty Trust has seen several new babies born recently! The most recent is Jessica Vincent’s little boy, Colton, was born at 11:51 A.M. on Saturday 8/20/11 weighing in at 7 pounds 13 oz. and 20 inches long. We are so excited for Jessica! Here is a photo of sweet Colton!
You’ve heard it can save you $100s per month in your payment…but you wonder, what are the facts…and would an initial interest only payment work for you?
With an interest-only mortgage loan, you pay only the interest on your mortgage in monthly payments for a fixed term. Usually the term is 5, 7, or 10 years. At the end of that term, you’d either refinance, pay the balance in a lump sum, or start paying off the principal, in which case of course the payments would increase. You won’t build equity in your home loan during the interest only term, unless you make principal payments; But in a strong market your home’s value can be expected to increase…
I get this question all the time. What can a seller pay towards my closing costs? Here are just some of the ways to figure this. If you are doing a conventional loan and are only putting down 5%, the seller is limited to pay only 3% towards your closing costs, points, prepaid items and title. But, if you are putting down 10% or more, the seller can pay up to 6% towards these same items. FHA will allow the seller to pay up to 6% towards closing costs, points, prepaid items and title regardless of the down payment. A VA loan does not have a maximum amount that the seller can pay towards a buyer’s closing costs. Also, Rural Development does not have a limit on what the seller can pay for the buyer’s closing costs, pre paid items, points and title. If you have questions, please leave a comment, and I will be happy to help!
United Way representatives were in the office today as we prepare for our United Way campaign next week. They presented Wendell, GTC President, with the Gold Award for the exemplary support GTC has provided United Way. We are so proud to partner with this organization that has touched 1 in 3 people in our community!
In an email to one of our Guaranty Trust loan officers, Shearer Spears, Brett Tritch wrote:
“You were awesome throughout the home buying process and drastically exceeded our expectations in all areas! You were extremely responsive to our every need from our initial conversations on through to closing on the house and went above the call of duty with even attending our closing to ensure that everything went smoothly. I can’t say enough about the speed with which you closed our deal as well. Knowing that we were in a time crunch you wildly exceeded our expectations by closing our deal from start to finish in only a week and a half which saved us big time in not having to move our belongings into storage and not having to obtain temporary housing; thanks to your efforts we were able to move straight from our old house into our new house with no delays! I can’t thank you enough for that. Aside from being great at your job you are also a great person to work with, extremely personable and caring. I would recommend you to anyone!”
In celebration of the recent launch of the Guaranty Trust blog and Facebook page, we are giving away an iPad 2! Everyone here at Guaranty Trust is excited about connecting with our customers in new ways.
The blog is off to an amazing start. We hope that the Mortgage 101 post category will be a helpful resource to those looking to buy a home and needing to learn about the mortgage process.
We have created a Facebook fan page for our mortgage customers, realtors, and other business partners. On this page, you’ll find the most recent and relevant mortgage news. Most importantly though, this is a place to connect with you and be an available and convenient resource to meet your mortgage needs.
Now, on to the giveaway details! Here’s how to enter:
For years, everyone that has ever thought about purchasing or refinancing a home has had this question and gone to great lengths to avoid the “monster” called mortgage insurance, or, sometimes referred to as PMI (private mortgage insurance). However, in today’s housing market where we have all experienced declining home values, mortgage insurance has become commonplace and necessary to allow homeowners and potential homeowners to obtain financing for a new home or refinance their existing loan with the very low interest rates that are being currently offered. Mortgage insurance is a default insurance for the lender, and unfortunately, the lender passes this charge on to the homeowner. Standard lending guidelines dictate that a lender’s maximum exposure in any loan cannot be more than 80%. With mortgage insurance placed on the loan, the lender is protected and thus, is willing to lend as much as 100% of the market value or purchase price of the home…
Melanie Little works in the Wholesale Set Up department. She had to have been the cutest pregnant girl, so tiny. She has such a sweet heart and makes the most adorable hair bows for little girls. Her little guy, Christopher Thomas Miller was born July 16th and weighed in at 5 lbs 8 oz. Here is a photo of Melanie at the baby shower thrown by her friends at Guaranty Trust and a photo of sweet Christopher!
So you’re ready to take the plunge? The All American Dream of homeownership! Wait! How do you know how much home to look for, if you don’t quite know what you can afford? This is a common concern that reflects you’re using the smart approach in reviewing this investment so that you don’t get over your head in financial obligations.
When applying for a new home loan, your loan officer will need to verify your assets, and more specifically, your liquid assets. The lender needs to verify assets to make sure you have enough money to cover the cash required at closing which includes down payment, closing costs, and prepaid items; as well as the total reserves required for underwriting approval.
Types of Allowable Assets:
• Checking and Savings Accounts
• Earnest Money
• Stocks
• Bonds
• Investments
• IRA/401(k)/retirement accounts
• Gift Funds
• Selling non-liquid assets
Guidelines for loan programs that require asset verification require that the lender source and/or season the assets. Sourcing assets means that you can verify for the lender where all of the funds came from. Seasoning assets means that the lender can verify that they have been in the account for at least two months….
Why is the APR on my Truth-in-Lending disclosure higher than the note rate?
The difference between the annual percentage rate (APR) and the note rate is very confusing especially for first time home buyers. Actually, even seasoned buyers have difficulty understanding the difference between the two numbers.
The interest rate is the rate a lender charges a borrower for use of money for a specific length of time. The interest rate, loan amount, and loan term determine your monthly payment. The APR does not affect your monthly payment….
The Mortgage Industry has changed over the last several years regarding various loan program down payment requirements.
There are 4 basic loan programs. Each has its own unique down payment requirement.
They are as follows:
VA is a 100% loan for Veterans and do not have a down payment.
Rural Development is a 100% loan to qualified buyers.
FHA requires a 3.5% down payment.
Conventional requires a 5% down payment.
Many borrowers worry about not having the funds to purchase a home. Don’t give up on your dream home without knowing all of the down payment assistance options available to you whether you are a first time homebuyer or buying your fifth home!
Adam Booten works here at Guaranty Trust, and he actually just bought a home! Here is a Q&A to help you get to know Adam a little better. Make sure and comment to give Adam some love!
Did you know that the most important factor in choosing the right loan is NOT always the interest rate ??
Many customers that I speak to concentrate heavily on getting the lowest interest rate possible in the market today, and completely ignore what they are actually paying to get that rate. We all want the lowest rate possible, but you must always factor in the closing costs you are having to pay or finance in the loan to tell if this lower rate is the best option for you.
Guaranty Trust is trying to get valuable information out to all homeowners who are contemplating a refinance and are not sure if now is the right time. We have all heard that when you inquire about a refinance, you should try to reduce your interest rate by 1-1.5% for it to be financially prudent. This is no longer the case. Because of new lending standards and guidelines put into effect by the Federal Government, closing costs on refinance loans are MUCH LESS than what they used to be. The result is that you are able to recoup the closing costs in a much shorter time period, thus, you do not need as much of an interest rate reduction to make it worthwhile.
Above and beyond interest rates and closing costs, there are 3 much more serious factors that EVERY homeowner needs to take into consideration:
Hi, I’m Lori Clark, the Branch Manger and a Sr. Loan Officer with Guaranty Trust Co. Since this is my first blog post, I think a good place to start is to address first time homebuyers. I get calls every day from buyers with questions about the mortgage process or even looking for a local realtor. Don’t feel overwhelmed by all of the scary stories others may have shared about their mortgage process- your loan options are unique to you! I can assure you that when you work with someone that is knowledgeable about the programs that are available to first time homebuyers you will have a smooth closing!
Congratulations!….You’ve decided you’re ready to buy a home, and you’ve heard horror stories about CREDIT- nightmares that you’d rather avoid. Well, the first step to being at peace with your credit is to understand it.
Ryan McCormick is a vital member of the Guaranty Trust family. He handles everything related to technology here at GTC so, you can imagine how important he is to our work. He and his wife just had twin baby girls yesterday, Adleigh and Claire. Isn’t their photo cute? Here is a video from the baby shower we had for the McCormicks, including their son Jace, last week. Talk about cutting it close! Congrats Ryan, your girls are beautiful!
There are many different definitions for a mortgage. But to put it in simple terms, a mortgage is a loan that is secured by a property or house and paid in installments over a set period of time. The mortgage is your promise to the lender that the money borrowed will be repaid.
What are the Components of a Mortgage?...
I am absolutely thrilled to be celebrating the 25th anniversary of Guaranty Trust Company. The years have flown by since I started this business back in 1986. I recognized a real need for service in the mortgage lending industry and founded Guaranty Trust to fill that need and provide unparalleled service to its customers. We are still doing this today, 25 years later, because of our tremendously talented employees who are like family to me.
Thank you for visiting our blog! We are new to this so please be gentle with us.
By you being here we are betting that you are looking for some information in regards to a purchase or refinance of a residential property and with 25 years under our belt of financing home loans…we have plenty of information for you. Here are just a few items we can help you with:
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