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Getting a mortgage :Why do much paperwork?

Getting a Mortgage: Why SO MUCH Paperwork? | The KCM Crew

We are often asked why there is so much paperwork mandated by the bank for a mortgage loan application when buying a home today. It seems that the bank needs to know everything about us and requires three separate sources to validate each and every entry on the application form. Many buyers are being told by friends and family that the process was a hundred times easier when they bought their home ten to twenty years ago.

There are two very good reasons that the loan process is much more onerous on today’s buyer than perhaps any time in history.
1.The government has set new guidelines that now demand that the bank prove beyond any doubt that you are indeed capable of affording the mortgage. During the run-up in the housing market, many people ‘qualified’ for mortgages that they could never pay back. This led to millions of families losing their home. The government wants to make sure this can’t happen again
2.The banks don’t want to be in the real estate business. Over the last seven years, banks were forced to take on the responsibility of liquidating millions of foreclosures and also negotiating another million plus short sales. Just like the government, they don’t want more foreclosures. For that reason, they need to double (maybe even triple) check everything on the application.

However, there is some good news in the situation. The housing crash that mandated that banks be extremely strict on paperwork requirements also allowed you to get a mortgage interest rate probably below 5%.

The friends and family who bought homes ten or twenty ago experienced a simpler mortgage application process but also paid a higher interest rate (the average 30 year fixed rate mortgage was 8.12% in the 1990’s and 6.29% in the 2000’s). If you went to the bank and offered to pay 7% instead of <5%, they would probably bend over backwards to make the process much easier. Bottom Line Instead of concentrating on the additional paperwork required, let’s be thankful that we are able to buy a home at historically low rates.

Either way to have to pay a mortgage

There are some people that have not purchased a home because they are uncomfortable taking on the obligation of a dollar signmortgage. Everyone should realize that, unless you are living with our parents rent free, you are paying a mortgage – either your mortgage or your landlord’s.

As a recent paper from the Joint Center for Housing Studies at Harvard University explains:

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

Also, if you purchase with a 30-year fixed rate mortgage, your ‘housing expense’ is locked in over the thirty years for the most part. If you rent, the one guarantee you will have is that your rent will increase over that same thirty year time period.

Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, owning might make more sense than renting since prices and interest rates are still at bargain prices.

Don’t wait, Move up to that home you have always wanted!

Don’t Wait! Move Up to the Home You Always Wanted!

Posted: 28 Jan 2014 03:00 AM PST

Now that the housing market has stabilized, more and more homeowners are considering moving up to the home they have always dreamed of. Prices are still below those of a few years ago and interest rates are still below 5%.

However, sellers should realize that waiting to make the move while mortgage rates are increasing probably doesn’t make sense. As rates increase, the price of the house you can buy will decrease. Here is a chart detailing this point:


Homes for Sale in Walton, Pope and Lassiter High School Districts

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Luxury Homes for Sale In Marietta

The luxury home market is recovering, call me or email me if any of these interest you!

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Selling or Buying? Now may be the time

Autumn Piggy Bank2As we enter the winter months, many expect the real estate market to begin to slow down. However, this winter there are many reasons that both buyers and sellers should consider moving forward with their real estate goals instead of waiting until the spring.


Waiting until the spring will probably mean increases in the two elements that determine the cost of purchasing a home: home prices and mortgage rates.


A seller will get the best price when demand is high and inventory is low. Demand will remain strong throughout this winter (see above) while inventory historically shrinks this time of year

You need a professional to help you buy or sell your home

You Need a Professional to Sell or Buy a Home

You Need a Professional to Sell or Buy a Home

Posted: 08 Oct 2013 04:00 AM PDT

HiResMany people ask us whether they should hire an agent to sell their home or whether they should first try as a For Sale by Owner (FSBO). In today’s market, we believe this is an easy decision: you need an experienced professional!

You need an expert guide if you are traveling a dangerous path

The field of real estate is loaded with land mines. You need a true expert to guide you through the dangerous pitfalls that currently exist. Finding a buyer ready, willing and able to pay fair market value for your home at a time when lending standards are so stringent is not an easy task. Finding reasonable financing can also be tricky when interest rates are volatile like they have been over the last several months.

You need a skilled negotiator

In today’s market, hiring a talented negotiator could save you thousands, perhaps tens of thousands of dollars. Each step of the way – from the original offer, to the possible re-negotiation of that offer after a home inspection, to the possible cancellation of the deal based on a troubled appraisal – you need someone who can keep the deal together until it closes.

Realize that when an agent is negotiating their commission with you, they are negotiating their own salary; the salary that keeps a roof over their family’s head; the salary that puts food on their family’s table. If they are quick to take less when negotiating for themselves and their families, what makes you think they will not act the same way when negotiating for you and your family? If they were Clark Kent when negotiating with you, they will not turn into Superman when negotiating with the buyer or seller in your deal.

Bottom Line

We believe that famous sayings become famous because they are true. You get what you pay for. Just like a good accountant or a good attorney, a good agent will save you money…not cost you money.

Stucco Homes, Should you have a separate inspection?

Stucco was the exterior choice and very popular in Atlanta for a while, especially in the late 80’s early 90’s.  Unfortunately the product that is a imagessynthetic stucco known as EIFS (External Insulation Finishing Systems) has had issues with moisture problems especially around windows and door frames.  The answer is you should absolutely have a separate stucco inspector, and he/she should be certified by  “Moisture Free Warranty”, the king of stucco warranties.  The inspector will probe the house in different areas to determine moisture readings, then will provide a report of his/her findings so that the buyer can be assured that the home is sealed properly.  The buyer should ask for at least a one year warranty from http://www.moisturewarranty.com/ from the seller.  Call me today at 770-354-0243  if you are thinking of buying a home or selling your stucco home, I can help you assess how to get your  home sold quickly for the most money!

Thinking of moving up? Do it now!

Moving Up? Do It Now!!

by The KCM Crew HiRes-15-1024x1024

in For Buyers, For Sellers

New reports are revealing that the number of existing home owners purchasing a house is beginning to increase. Some are moving up, some are downsizing and others are making a lateral move. Another study shows that over 75% of these buyers will, in fact, be in that first category: a move-up buyer. We want to address this group of buyers in today’s blog post.

There is no way for us to predict the future but we can look at what happened over the last year. Let’s look at buyers that considered moving up last year but decided to wait instead.

Assume they had a home worth $300,000 and were looking at a home for $400,000 (putting 10% down they would get a mortgage of $360,000). By waiting, their house appreciated by 12% over the last year (national average based on the Case Shiller Pricing Index). Their home would now be worth $336,000. But, the $400,000 home would now be worth $448,000 (requiring a mortgage of $403,200).

Here is a table showing what additional monthly cost would be incurred by waiting:

Move up

If your family sees yourself in this situation, it may make sense to move now than later. Prices are definitely appreciating and interest rates are beginning to rise.

Do you need representation with New Home Builders?

contract with magnifying glassThe answer is a resounding–YES!!

Since new home building has made a comeback, many buyers are walking into the builders model homes and offices unrepresented.  It is very important when you are working with an agent and you are out driving around without that agent that you register your agent if you walk into a new home community office.  The reason is –unless you register your agent then the builder will not honor that agent and you could end up without representation.  New home builders often use their own contracts which are heavily weighted in favor of the home builder.   When you have buyer representation your agent can help you wade through the pages of small print and work with the builder for concessions, upgrades, closing costs and many other things to help you get a good deal, and understand what you are signing.

It is a very common misconception that the if you don’t have an agent the builder will discount or give you what would have been the agents commission, but that simply is not true.  The builder will keep the money in their pockets for a more profitable sale, they are not handing it over to you.

It costs you nothing to have representation and it could save you thousands of dollars AND headaches along the way.  The purchase of a new home is one of the biggest investments of your lifetime, why not have an agent such as me -:-)  be on your side!

Call me today at 770-354-0243 if you are thinking of purchasing a home, new or resale and I will be happy to discuss the ways in which we can work as a team to make your home dream purchase a reality!