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Bad Credit Mortgages in Georgia

To begin, it’s important to know certain things about the current loan market in Georgia. The median price of a home in Georgia is $111,200, and homes in Georgia appreciate at less than half of the rate of the average national home appreciation. The rate of job growth in Georgia is well below the national average. In fact, income levels in many parts of Georgia are too low to purchase a median-priced home with a conventional loan.

For this reason, it’s important that borrowers with bad credit don’t make mistakes when choosing their home loan. This article explains the most expensive mistakes borrowers make when shopping for a bad credit after bankruptcy home loan in Georgia:

They Don’t Have Their Home Inspected
Having your home inspected can cost several hundred dollars, but it can save you thousands of dollars in the long run. Inspectors can check for things like bad wiring, weak foundations, mold, etc. These problems can cost you thousands of dollars to repair, so it’s best to either avoid homes with these types of problems or plan on the costs of repairing it in the total amount you’re willing to spend on your mortgage.

They Don’t Evaluate Their Mortgage Options
Many home buyers are eligible for some form of government funding—down payment assistance or fixed, low interest rates. However, mortgage companies will not offer you these loans; borrowers must research these benefits and request them. The state of Florida provides a list of mortgage companies that offer government-assisted loans that can be accessed through the HUD website.

Their Down Payment Is Too Low
A low down payment will affect your interest rate if your loan amount is not considerably lower than the appraised value of the home. Lenders calculate your loan-to-value ratio (LTV) to determine their risk in the transaction. A higher LTV will represent a higher risk for the mortgage company, so they will raise your interest rate. Even if the difference in interest rates is small, a higher interest rate could cost you thousands of dollars over the life of the loan, especially with bad credit or bankruptcies.

If you have credit problems or a past bankruptcy, consider applying with one of our recommended lenders. They are reputable and have many programs that are specialized for the needs of people with problem credit.