WHAT IS A HOME INSPECTION?

A home inspection is an objective visual examination of the physical structure and systems of a home, from the roof to the foundation. Having a home inspected is like giving it a physical checkup. If problems or symptoms are found, the inspector may recommend further evaluation.

WHAT DOES IT INCLUDE?
The standard home inspector's report will review the condition of the home's heating system, central air conditioning system (temperature permitting), interior plumbing and electrical systems; the roof, attic, and visible insulation; walls, ceilings, floors, windows and doors; the foundation, basement, and visible structure.

WHY DO I NEED A HOME INSPECTION?
The purchase of a home is probably the largest single investment you will ever make. You should learn as much as you can about the condition of the property and the need for any major repairs before you buy, so that you can minimize unpleasant surprises and difficulties afterwards. Of course, a home inspection also points out the positive aspects of a home, as well as the maintenance that will be necessary to keep it in good shape. After the inspection, you will have a much clearer understanding of the property you are about to purchase. If you are already a homeowner, a home inspection may be used to identify problems in the making and to learn preventive measures which might avoid costly future repairs. If you are planning to sell your home, you may wish to have an inspection prior to placing your home on the market. This will give you a better understanding of conditions which may be discovered by the buyer's inspector, and an opportunity to make repairs that will put the house in better selling condition.

WHAT WILL IT COST?
The inspection fee for a typical one-family house varies geographically, as does the cost of housing. Similarly, within a given area, the inspection fee may vary depending upon the size of the house, particular features of the house, its age, and possible additional services, such as septic, well, or radon testing. It is a good idea to check local prices on your own. However, do not let cost be a factor in deciding whether or not to have a home inspection, or in the selection of your home inspector. The knowledge gained from an inspection is well worth the cost, and the lowest-priced inspector is not necessarily a bargain. The inspector's qualifications, including his experience, training, and professional affiliations, should be the most important consideration

CAN'T I DO IT MYSELF?
Even the most experienced homeowner lacks the knowledge and expertise of a professional home inspector who has inspected hundreds, perhaps thousands, of homes in his or her career. An inspector is familiar with the many elements of home construction, their proper installation, and maintenance. He or she understands how the home's systems and components are intended to function together, as well as how and why they fail.
Above all, most buyers find it very difficult to remain completely objective and unemotional about the house they really want, and this may affect their judgment. For the most accurate information, it is best to obtain an impartial third-party opinion by an expert in the field of home inspection.

CAN A HOUSE FAIL INSPECTION?
No. A professional home inspection is an examination of the current condition of your prospective home. It is not an appraisal, which determines market value, or a municipal inspection, which verifies local code compliance. A home inspector, therefore, will not pass or fail a house, but rather describe its physical condition and indicate what may need repair or replacement.

WHEN DO I CALL IN THE HOME INSPECTOR?
A home inspector is typically contacted right after the contract or purchase agreement has been signed, and is often available within a few days. However, before you sign, be sure that there is an inspection clause in the contract, making your purchase obligation contingent upon the findings of a professional home inspection. This clause should specify the terms to which both the buyer and seller are obligated.

DO I HAVE TO BE THERE?
It is not necessary for you to be present for the inspection, but it is recommended. You will be able to observe the inspector and ask questions directly, as you learn about the condition of the home, how its systems work, and how to maintain it. You will also find the written report easier to understand if you've seen the property firsthand through the inspector's eyes.

WHAT IF THE REPORT REVEALS PROBLEMS?
No house is perfect. If the inspector identifies problems, it doesn't necessarily mean you shouldn't buy the house, only that you will know in advance what to expect. A seller may adjust the purchase price or contract terms if major problems are found. If your budget is tight, or if you don't wish to become involved in future repair work, this information will be extremely important to you.

IF THE HOUSE PROVES TO BE IN GOOD CONDITION, DID I REALLY NEED AN INSPECTION?
Definitely। Now you can complete your home purchase with your eyes open as to the condition of the property and all its equipment and systems. You will also have learned many things about your new home from the inspector's written report, and will want to keep that information for future reference.

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10 Questions You Should Ask Your Lender.

1.What Types Of Mortgages Does Your Lender Offer?
Most mortgage company offer a wide array of loan options to fit various situations. Tow most common loan types are fixed-rate and adjustable-rate mortgages (ARMs).

A fixed-rate mortgages interest rate and principal payment remain constant for the live of the loan. Since the interest never changes during the life of the loan, the borrower can always budget for the mortgage payment. (Keep in mind that Insurance and Taxes are adjustable annually if the borrower is escrow they may see slight adjustment in their mortgage payments due to these annual adjustment). A fixed- rate mortgage is the best option especially if the borrower is planning to stay in the home for a while (5 years or more).

With the ARMs, the interest rate and your payments are adjusted up on down periodically as the market index changes. The rate usually is adjusted between three months and five years. ARMs are usually protected by caps that limit how much the interest rate adjusted up the first time, and each successive time or overall. This option is good in you are getting a mortgage at a time when rate is high or if you are planning to sell before the first adjustment period.

2.What Is the Interest and Annual Percentage Rate (APR)?
The interest rate used to calculate your total cost over the live of the loan and the amount of your monthly payment. (The higher your interest rate the more your monthly payment will be). The APR is derived by calculation that includes the interest rate and all the other related lender fees divided by the loan term.

3. What Are the Discount Points and Origination fees?
Each point equals 1% of the loan amount. Therefore 1 point on a $200,000 loan cost $ 2,000. Points are a way to buy down the interest rate. The more points you pay the lower your interest rate. Landers may have some restrictions on points buy down. Points are tax deductible, no matter who pays for them. The longer you plan to stay in the home the more it worth it to pay for discount points.

4. What Are The Closing Costs?

Closing costs are fees included in your loan, usually include charges for credit reports deed search and more. Your lender is required by law to provide a good faith estimate of your loan’s closing costs within three days of receiving your application. Your mortgage consultant should explain the purpose of all the fees Your Real Estate Professional should try to have the seller pay some of these closing costs on your behalf.

5. What Are Rate Locks and When Can You Take Advantage Of Them?
Interest rates fluctuate daily. Think about licking in the interest rate if interest rates are rising. Licking in interest rate is usually good for 30 to 45 days while you search for the right home. Lock in the interest rate on application not an approval. So if the rate goes up between the time you applied and the time you are approve you will not have to pay the higher rate.

6. What Is The Minimum Required Down Payment?
The down payment determines the loan’s rate and term. The minimum down payment is the lowest amount of money you can putdown on your home; this is expresses as a percentage of the property’s value. Required down payment usually range from 3%-20%. A 3% down payment requires 97% financing, with a 5% down payment 95% will be financed. The larger the down the lower the principal and monthly payments. Larger down payment usually enables you to obtain a lower interest rate. Down payment less that 20% requires you to have mortgage insurance (PMI).

7. Is There A Prepayment Penalty?
Sometimes if you pay off your mortgage early you could be charge a prepayment penalty. The penalties usually are as much as 3% of the loan balance or the equivalent of six month’s interest. Often, prepayment penalties decline or disappear over time. Some time you maybe able to secure a better interest rate if you agree to a prepayment loan. You may want to think twice before you agree to a loan with a prepayment penalty. Most borrowers do not stay in the home for the life of the loan. They usually refinance or sell the home.

8. How Long Will It Take To Close My Loan?
Closing time may vary from about 2-6 weeks, depending on how long it takes to assess your documentation and check your credit. Try to submit your application far enough in advance to ensure funding for your loan. Talk to your real estate agent about allow the maximum time (6 weeks) for closing when you find the home you want to purchase. This will give your loan processer more time to work on your loan. If the loan processer is done before the maximum time, ask your agent to request a change of closing date so you can close earlier.

9. What Might Delay My Loan Application?
Avoid potential delays by making sure your application is complete, correct and legible. Provide all the supporting documentation needed so; your loan processer will have all the necessary information to proceed with the processing of your loan.

10. What Are The Documentation Do I Need?
Some of the documentation that you need are name and contact information of your current employer, proof of income, social security number, bank statements, and any assets you have. You loan officer should provide you with a check list of all the documentation you will need for the loan to be processed.


Royan Johnson is a Licensed Sales Associate with CENTURY 21 Platinum Realty in Atlanta & Metro Atlanta Representing Home Buyers, Sellers and Investors. Contact Royan

URL: http://atlantafinestrealtor.com/

How Does Short Sales Work

Short sale is simple in theory. You owe more than the home is worth or you can no longer pay the mortgage payments so in order to sell without bringing money to the table yourself you must convince the bank that you have a financial hardship and cannot make the payments. The bank may then agree to take a lower payoff than the total loan amount. Example: if you owe $350,000 but can only sell for $300,000 then the bank will be "forgiving" $50,000 in debt. But, at least you've sold the home and avoided foreclosure. In practice short sale usually isn't that simple. There is a lot of work that needs to be done. A short sale package must be put together to show bank hardship, inability to pay, the homes value, repairs, net to the bank after sale etc. It will be the banks decision whether or not to accept or reject an offer. The bank will have the final say over any offer you accept, because the offer will be less than your loan payoff. Banks can take their time with a decision but I think that many banks will be speeding up the process as time goes on and they get their loss mitigation departments up to speed. If you are able to make your mortgage payments you probably should. However, bank will usually not consider a short sale as an option until you've already missed a couple payments. But, those missed payments will show up as late payments on your credit report so, the fewer there are the better. Before putting your house on the market have your agent check what other properties are SELLING for in your area (In other words make sure your agent do a Market analysis for your area). Not what they are "on the market" for but selling for. Start there and lower your price quickly until you get an offer. Remember you are under a time constraint if you want to avoid foreclosure. The key thing is to get an offer. Once you have one you'll at least have something to work with even if it is low. Keep in mind that a short sale will have less of a negative impact than a foreclosure will on your credit. The consensus is that a short sale will cost you around 100 points on you credit score while a foreclosure will cost you 200-280 points and stay on your credit report much longer. So, pursue the short sale aggressively to avoid a foreclosure. Another thing you should be aware of are the tax consequences. You may end up owing taxes on the amount of debt that is forgiven. There are ways you may be able to avoid the tax. If you can show you were insolvent at the time of the sale then the IRS may exclude the debt forgiveness from taxation. Take a look at section 108 of the IRS Code and form 982. You might want to consult with an attorney or accountant that is familiar with the process because it could end up saving you on your taxes.


How to Write a Short Sale Hardship Letter

_____________________________________________________
The Hardship Letter is part of the short sale package and is written by the seller or their representative. It is used to explain to the lender the reasons for the borrower's need for a short sale. Reasons such as divorce, job loss, medical issues, etc. can and should be included. Usually just a one page letter with the pertinent information will suffice.

A simple letter in the following form should suffice:

DateLender NameAddressLoan NumberDear Sir/Mama,{In this section explain your hardship and why you must utilize a short sale - some example hardship reasons are listed below}

• Unemployment
  
• Reduced Income
  
• Divorce
  
• Medical Bills
  
• Too Much Debt
  
• Death of my Spouse
  
• Death of a family member
  
• Payment Increase
  
• Business Failure
  
• Job Relocation
  
• Illness
  
• Damage to Property
  
• Military Service
  
• Other (Please Specify)
  

Borrower’s SignatureDateCo-Borrower’s SignatureDate

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More than Money: Considerations for Rent vs Buy

By eFinanceDirectory

While being a homeowner is the quintessential American dream, finding the right time to buy can be a challenge. Owning a home is likely the largest investment a person makes in their lifetime. Performing a "Rent vs Buy" analysis looks at not only the financial factors involved, but the overall value of home ownership versus renting.

With so many factors going into a home purchase: finances, lifestyle, employment and personal goals, it's critical to run the necessary due diligence. Every potential homeowner should run a buying versus renting analysis to determine if the time to buy is now, or if renting is a more prudent decision. Here are the factors to consider when running a buy versus rent analysis:

Can You Afford It? A Cost Comparison

This question is a bit more complex that it might seem. Often, potential buyers stack the mortgage payment alongside the monthly rent and consider the comparison complete. But buyer beware: there are many overlooked costs associated with home ownership. Financing, homeowner fees, property taxes, repairs and maintenance can add up quickly. On the other hand, mortgage interest on both first and second homes are tax-deductible which make homeownership one of the best ways to trim your tax bill.

In today's market, shopping around for a competitive interest rate is necessary for solid financing that works with your budget. What you can afford will be greatly impacted by how much money you can borrow, and at what rate you are borrowing. One thing to keep in mind is that like most markets, the mortgage market is very dynamic.

Good credit and a low debt to income ratio will help to secure a lower rate and make the cost of borrowing less in the long run. A good mortgage broker or loan officer can be a great help to a prospective borrower. If a borrower is financially savvy, they could also shop around for the best rates themselves. Anyone with a less than stellar FICO score (680-700 and above is generally considered excellent) could be lumped into what is known as the sub prime mortgage category. If they cannot provide full documentation of their income and/or assets, and have less than stellar credit, then they will almost certainly be categorized as sub prime. First time home buyers sometimes fall in because they haven't established credit. People with existing mortgages who have had late mortgage payments in the past or a bankruptcy might also be sub prime. The easiest way for someone to find out where they stand, in regards to credit, is to run a credit report. There are many different services on the web where this can be done for free, or consult a mortgage broker who can run a credit report and advise accordingly.

Not all types of property are created equal. Condominiums, townhomes and other complex-style dwellings often carry homeowner dues that ranges anywhere from under $100.00 to several hundred dollars a month. These fees are imposed by the homeowner's association for upkeep on common grounds, gym, pool and laundry facilities and other community maintenance. Knowing these fees and what they include is essential to the final assessment of your monthly payment.

Property taxes too are a factor in determining what your monthly payment as a homeowner will be. Often, loans will have an automatic impound account embedded within the loan which will raise the monthly mortgage, but make this bi-yearly bill automatically accounted for. Taxes are determined by type of property, property value and location.

One of the least considered factors in homeownership is both financial and emotional: the cost of repairs and maintenance. Bad wiring, plumbing, termites, shifted foundation: these are all the bane of a new homeowner's existence. Having a reputable housing inspector go over a prospective property can assist in determining the quality of the structure and help assess the need for repairs. Other overlooked costs include closing costs, which are usually about 1% of the total property value. On a $400,000 loan, these are numbers that cannot be ignored in the final analysis.

In spite of these costs, it may be advantageous to buy versus to rent, depending on the rate of increase on your rent annually. If rent increases at 5% per year the inflation might overrun a mortgage and its associated costs.

Homeownership

For many, buying a place to call your own is the ultimate financial goal. The non financial value and personal sense of community a homeowner wins is a certain type of satisfaction. There too, are tangible freedoms such as the ability to change the decor or the structure of your home without a landlord's prior approval.

The actual value of non-financial factors will vary greatly. Lifestyle and personal preference will weight heavy in deciding not only when the right time to buy is, but also what type of property. If you are a young, unmarried executive who travels 50% of the time, owning an apartment in Manhattan might be better than a ranch in Montana. Family size, occupation, need for security: these are all tangible factors that weigh into the final decision of buying versus renting.

There are still, other considerations. As a homeowner, you are your own landlord. Repairs, maintenance and community issues are all the responsibility of the homeowner. If you are someone who prefers less responsibility and greater ease to move, buying investment property rather than a home to live in might be a better choice.

Regardless of the final decision, it is important to carefully examine your options when looking at buying or renting a home. Consulting a reputable mortgage broker in your area is the first step.

URL: http://www.atlantafinestrealtor.com

What Do We Do Now?

Last month’s article wasn’t meant to frighten anyone. It was simply my way of letting you know what the heck is going on in the mortgage industry and what got the market in the situation we’re in these days.

Let me set the tone for this article by mentioning a few things from last month’s: “The market is correcting itself.” “It’s just in a slump.” “Guidelines are changing.” “The industry will always find ways to make home buying affordable.”

Many of you probably ask how can there be options? I personally think things will get back to normal sooner than most think because my idea of normal goes back much farther than anyone who has been in the housing market within the past 5 years as a homeowner, realtor, investor or mortgage loan officer. When I got into this business in 1982, 30 year fixed rate mortgage interest rates were commonly in the double digits (something we won’t see). You had to put 10–20 percent down, and pulling equity out of your home was taboo

What we see today is a result of the industry being too creative and too greedy. In order for things to get back to some sense of normalcy, the industry will return to a conservative and responsible position. Since last month’s article, we’ve seen several more mortgage companies go out of business, many of which you don’t read or hear about because their roles in the business were to pass loans through the system directly to the bigger companies. These companies had very little history in the industry, therefore they won’t be missed because they only made it easier for the bigger banks and lenders to put closed loans on the books a lot faster. I think banks and lenders will go back to doing more business with companies like 1st Commitment Mortgage Services because we keep a pulse on what’s going on the our communities.

THESE WILL BE YOUR OPTIONS

More broker business from fewer brokers
Basically, this means mortgage brokers will be relied on to originate more business for realtors, lenders and banks because the experienced mortgage broker knows its markets. We are an extension of lenders’ sales staff and our overhead is much less than those Pass-Through-Lenders.

More basic loan programs (ie fixed rate)
The sub prime business first hit the market in the mid 1990’s and it was down hill ever since। We will fix this problem by going back to the basics—fixed rate programs because they are the safest program. Interest Only, Option ARM loans and other Exotic loan programs were never meant for first-time homebuyers and many homeowners with these programs are wishing they had a standard fixed rate loan.

Improved credit and credit score requirement
Credit will become the most important factor in extending credit like it use to be People will have to show their credit worthiness by having a history of good credit. An option to improve one’s credit will be the use of credit score improvement programs such as the “Rapid Rescore.” This system will improve scores immediately after satisfying derogatory credit. There’s normally a costs of a couple hundred dollars for this service.

FHA and VA will re-capture more of the market share
FHA and VA will definitely re-capture most of its market share during these times because they have withstood almost every storm. FHA released an initiative last week that will refinance sub prime ARM mortgages. The homeowner’s mortgage history must show on time mortgages payments before their mortgage rates went up. Give us a call at 1st Commitment Mortgage Services 678-205-0506 because we are FHA certified.

More down payment required on Conventional Loans
I remember when everyone had to put money down when buying their home This requirement will return because history shows that homes purchased with down payment have a lower default and foreclosure rateThe belief is when an investment is made by the homeowner they tend to respect their investment.

More documentation
The No Doc, Stated Income, Stated Asset and Bank Statement type loans are gone or severely modified Many of these programs created a wave of misuse and abuse in the mortgage industry because people found ways of pushing the envelope. These programs were created for self employed persons who made the income but wrote a lot off of their taxes. Therefore, we will go back to having almost everyone document their income and assets when buying or refinancing their home.

More use of Automated Underwriting Systems for approval
Automation to the rescue. Many of my clients have been rewarded with the use of our automated underwriting system that will basically look at their complete profile and determine their creditworthiness.

Percy Blackshear, III President 1st Commitment Mortgage Services, Inc.
1st Commitment Mortgage Services, Inc. is a Georgia Residential Mortgage Licensee, License Number 19155.
URL: http://www.1stcommitmentmortgage.com
To fine your dream home in Atlanta Visit: http://atlantafinestrealtor.com/

How to Buy HUD Homes

HUD sells properties at reduced prices that you might want to buy!

What is a "HUD Home"?
When someone with a HUD insured mortgage can't meet the payments, the lender forecloses on the home; HUD pays the lender what is owed; and HUD takes ownership of the home। Then sell it at market value as quickly as possible

Frequently Asked Questions About HUD Homes

Who can buy a HUD home?
Answer: Anyone! If you have the cash or can qualify for a mortgage, you can purchase a HUD home.

Are HUD Homes meant for people with low incomes?
Answer: HUD homes range in price, but most are affordable for low-and moderate-income Americans.

Is it true I can get a HUD Home for a dollar?
Answer: No. HUD sells homes at market value - that means that the price is set based on the price of similar homes sold in the area.

If the HUD Home needs repairs, will HUD make them?
Answer: HUD Homes are sold "as-is," without warranty. That means that HUD will not pay to correct any problems. But even if a HUD Home needs fixing up - and not all of them do - it can be a real bargain! For example, HUD's asking price on the home will reflect the fact that the buyer will have to invest money to make improvements. HUD might offer special incentives such as an allowance to upgrade the property, a moving expense allowance, or a bonus for closing the sale early. And keep in mind that on most sales, the buyer can request HUD to pay all or a portion of the financing and closing costs. Your real estate agent will have details. HUD encourage you to get the home professionally inspected before you make an offer so you will know what repairs you may have to make BEFORE you submit your bid.

How do I buy a HUD home?
Answer: Start by finding a participating real estate agent. Your real estate agent must submit your bid for you. Normally, HUD Homes are sold in an "Offer Period." At the end of the Offer Period, all offers are opened and, basically, the highest bid is accepted. If the home isn't sold in the initial Offer Period, you can submit a bid any business day. If your bid is acceptable to HUD, your real estate agent will be notified, usually within 48 hours.

If my bid is accepted, then what happens?
Answer: Your real estate agent will help you through the paperwork process. You'll be given a settlement date, normally within 30-60 days, where the transaction will occur. HUD has an excellent booklet to help you understand the settlement process: "Buying Your Home - Settlement Costs and Helpful Information." Or contact royan@c21intown.com to have a copy e-mailed to you.
When you buy a HUD Home, the selling agent's commissions are usually paid by HUD. HUD will pay a total sales commission of up to 6%.

How can I find out what HUD Homes are for sale?
Answer: Visit HUD Homes for sale or email http://www.atlantafinestrealtor.com/ every day। If you see one that interests you, contact one of the real estate agents in your area who show HUD homes. They can help you from there.

How can I get a loan to buy a HUD Home?
Answer: HUD doesn't make loans directly. HUD have a number of mortgage insurance programs that could help you buy a home. You can read about those programs here. Then contact a HUD approved lender, who will take you through the steps and actually make the loan.

Can I buy a HUD Home as an investment?
Answer: Most HUD Homes are initially offered on a priority basis to owner occupant purchasers (people who are buying the home as their primary residence). Following the priority period, unsold properties are then available to all buyers, including investors.

Is there anything else I should know about HUD Homes?
Answer: Every homebuyer and homeowner is encouraged to be a wise consumer, so be sure to read Consumer Information. Houses built before 1977 may have lead based paint, which can cause harm to your family; so be sure to read about this hazard and about what you would need to do to correct it.

Attention: Nonprofits and Government Agencies! HUD has a special sales program under which approved nonprofit organizations and government agencies may purchase properties at discounted prices for use in local housing or homeless programs। Contact the local HUD office Or royan@c21intown.com for details.


URL http://www.atlantafinestrealtor.com/

WHAT TO EXPECT AT CLOSING

In an instance where the real estate transaction is a cash deal (cash closing)। The transaction can be consummated by executing a handful of documents such as a Settlement Statement, Seller’s and Purchaser’s Affidavits, and Transfer Tax Form। However: a transaction which the buyer takes out a mortgage can require execution of many more documents. These documents will be prepared by the closing attorney’s office and Lender. The documents furnished by the Lender will include Federal, State, and a host of others ranging forms including various affidavits to taxes. The following is a list of typical documents found in a loan package at the closing. Keep in mind that that this list is not conclusive. Each loan is unique. So, documents may vary somewhat according to the type of loan a buyer is getting.

Pertain to buyer(s)

HUD-1 Settlement Statement:Developed by the U.S. Department of Housing and Urban Development, this document itemizes the services provided, fees, and charges associated with closing the loan. A buyer should request a copy the HUD-1 Settlement statement at lest 24 hours prior to closing. The copy of the HUD1 a buyer received prior to closing is will called a good faith estimate and may chanced slightly at closing

GRMA Disclosure
Required by the State of Georgia as a disclosure to the Borrower(s) that failure to comply with terms and conditions of the loan could result in foreclosure against the subject property

Representation Disclosure
Informs the Borrower(s) that the Closing Attorney’s Office represents the Lender/Investor and not the Purchaser(s) or Seller(s)

Corrections/Errors and Omissions/Compliance Agreement
Agreement by Borrower’s to cooperate with Lender and Settlement Agent in correcting typographical or clerical errors in any mortgage documents.

Truth-In-Lending Disclosure
Discloses the “annual percentage rate” (APR) reflecting the cost of the mortgage loan as a yearly rate. This rate will probably be higher than the rate stated on the Note because the APR includes, in addition to interest, loan discount points, fees, and other credit costs. Additional information is also provided, such as finance charges, schedule of payments, late payment penalties, and whether or not there is any penalty for early payoff of the loan.

Escrow Account Statement
Federal law required disclosure on every residential mortgage loan with escrow accounts for payment of future taxes and insurance reflects anticipated receipt and disbursement of escrow funds over the next (12) twelve months from the loan origination date.

Borrower’s Certification and Authorization
Borrower’s certification that all information he/she provided to the Lender in association with the mortgage loan was true and correct and authorizing Lender to re-verify credit information.

Promissory Note
An instrument the Borrower(s) sign which contains an unconditional promise to pay, on demand or at a fixed or determined future time, a particular sum of money to the Lender, a specified person, or the bearer of the Promissory Note. This document will outline the basic terms of the loan including names of Borrower and Lender, Interest Rate, Loan Amount, and period of repayment.

First Payment/Coupon Letter
Lenders must provide a temporary coupon for the Borrower(s) to make their initial mortgage payment in case the coupon payment booklet is not received in time for such payment.

Waiver of Borrower’s Right
Acknowledges the Borrower’s signed with the understanding that failure to meet the terms and conditions of the mortgage loan could result in foreclosure upon the collateral property and that this procedure is non-judicial in Georgia. (Check to see if your state is non-judicial or not.)

Security Deed
Usually signed the same time the Promissory Note is created. The Security Deed gives the Lender a "security interest" in property or real estate, providing the Lender the opportunity to seize the property in the event of default by the Borrower.

Riders
Attached to the Security Deed and in certain circumstances: For example: A Planned Unit Development Rider where the subject property is located in an area with covenants providing for mandatory assessments (e.g. Homeowner Association fees) or an Adjustable Rate Rider for Adjustable Rate mortgage loans.

Survey/Termite Waivers or Hold Harmless Forms
These are included based on the requirements of the given transaction. In some instances, mostly Refinances and Second Mortgages, Surveys and Termite Inspections are not required and thereby “waived.” In cases where Surveys and Termite Inspections are required, the closing package will include a “hold harmless” agreement which serves as notice to the Borrower(s) that such services were provided by an independent contractor.

IRS Form W-9
Used by the Lenders as verification of Borrower’s Social Security Number and for reporting interest deduction by the Lender to the IRS.

IRS Forms 4506/8821
Forms Authorizes the Lender to request a copy of Borrower(s) income tax return directly from the IRS.

Occupancy/Employment Affidavits
Certify that the Borrower(s) intend to occupy the subject property as a principal residence and that his/her employment status has not changed since loan application.

Flood Insurance
The Flood Protection Act of 1973 (Public Law 93-234) requires the purchase of flood insurance in certain flood prone areas as designated by the Department of Housing and Urban Development. Therefore, Borrower(s) must purchase such insurance if the property is located in an area where flood insurance is required.

Notice of Right of Rescission
Is used in case of Refinance and Second Mortgages, but not when property is subject of a sale. The notice of Right of Rescission gives the Borrower(s) the right under Federal Law to cancel the transaction, without cost, within three business days.

Pertain to Seller

Seller’s Affidavit of Seller’s Affidavit of Residence

Verifies the Seller(s) is not subject to State of Georgia Capital Gains Tax withholding requirements.

Seller’s Certificate of Exemption
Used in conjunction with the affidavit if Seller is not a resident of the State of Georgia, Verifies Seller’s exemption from State of Georgia Capital Gains Tax withholding.

Owner’s Affidavit
Affidavit of Seller(s) certifying that the property is conveyed “free and clear” of any liens, claims or judgments.

Warranty Deed
The Instrument that conveying title to real property from Seller(s) to Purchaser(s)

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