Cumming Mortgage News

  1.  Look at the sale of your current home and the purchase of your new home as one strategy and you can really come out ahead.  Many people feel that they can’t move-up due to how much value their current home might have lost in value but they couldn’t be further from the truth because, although their current home has gone down in value, so has the home that they are buying.  Let’s say that your home is currently worth $300,000 in today’s market but was worth $550,000 at the peak.  Let’s also speculate that the home you are buying is currently priced at $500,000 but was worth $900K during the go-go days.  In this example, you “lost” $250K on your current home but “saved” $400K on the new home.  This nets you a gain of $150,000. 

  2. Focus on the long term: Let’s assume for the sake of argument that homes will increase by 50% in the next 10 years (the actual amount of the increase doesn’t matter – the principle is still sound).  Your current home would then go from its current value of $300K up to $450K, a gain of $150,000.  However, your new home would go from $500K to $750K, an increase of $250,000 netting you an additional $100,000 in REAL, TAX FREE money when you sell!  Many people think that the Metro Atlanta market will double in that time frame making the financial benefits even greater.

  3. Consider the lifestyle change: Moving up in today’s market gives you an amazing opportunity to purchase a home that might never again be in your price range.  With the purchase comes larger homes, more amenities, better communities, etc.  Although I have always felt that the financial component of a home purchase needs to be considered deeply, we cannot completely overlook the lifestyle component.  Basically, think of how you will feel each and every day as you pull into the driveway of your new home.


  4. Current home conversion:  Although most people sell their current home before buying a new one, it might be worth considering keeping your current home as a rental property.  This will allow you to “ride out” the market on your current home so you don’t have to sell near the bottom and you get the best of both worlds.  This strategy is not for everyone and does bring with it some risks so be sure to speak with a qualified mortgage planner and Real Estate professional about all of the various components of this option since it is not for everyone


  5. When to list your current home for sale:  You should plan to put your home on the market before you buy. This way you will not find yourself at a disadvantage at the negotiating table, feeling pressured to accept an offer that is below-market value because you have to meet a purchase deadline. And if you find another home to purchase before your home is sold, make an offer that is contingent upon the sale and close of your current home. If you've already sold your home, you can buy your next one with no strings attached. If you do get a tempting offer on your home but haven't made significant headway on finding your next home, you might want to put in a contingency clause in the sale contract which gives you a reasonable time to find a home to buy.

  6.  Failing to coordinate closings:   With two major transactions to coordinate together with all the people involved such as mortgage experts, appraisers, loan officers, title company representatives, home inspectors or pest inspectors the chances of mix-ups and mis-communication go up dramatically. To avoid a logistical nightmare we will work very closely with you to avoid any problems.

Posted in:Buying a home
Posted by Chip Nitowski on March 16th, 2017 10:00 AM

Did you know that Custom Mortgage Services can raise your credit score in 3 to 5 days by getting your credit score rescored at the repository level (Experian, Equafax, Transunion).   

 Documentation must be provided to correct an error or add an update to the Credit Report. This may be as simple as getting the Credit Report to reflect a current account balance. This has the potential of increasing a credit score 20 points.

The following guidelines must be provided in order to get the credit report updated.

Examples of acceptable documentation include:

    • Creditor Letters - Letters must include ALL of the following:
    • Letterhead of the creditor
    • Account number
    • Consumer's name
    • Creditor contact name and phone number
    • An explanation explicitly stating what needs to be done with the account
    • Properly recorded public records such as:
    • Certified satisfaction of judgment from the court
    • Certified tax lien release from the IRS
    • Certified bankruptcy discharge papers from the court
    • Any other legal documents that may support the borrower's claim
    • Other written correspondence with contact name

Examples of documents that will not be accepted:

    • Canceled checks
    • Receipts for money orders
    • Account Statements
    • Hand-written letters
    • Third party documentation
    • Equifax will not accept documents from MBNA or Providian for Rapid Rescore.

Raising your credit score can save you THOUSANDS of dollars when obtaining a home loan!!!!

Posted in:Credit and tagged: Credit Repair
Posted by Chip Nitowski on March 9th, 2017 11:51 AM


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