GUARANTY MORTGAGE SERVICES, LLC
BUFORD, GA

Things have changed dramatically in the mortgage lending business in the last few decades making it more complex. If you have a mortgage, you may have applied and received the loan from one bank only to find out you would make your payments to another bank. Then, you may have received notice that your bank had sold your mortgage to another bank… Lender approves your mortgage and funds the loan. If the lender is a bank or credit union, the funds for the loan come from their deposits. If the lender is a mortgage banker that has no access to deposits, it accesses money to fund the loan from a credit line and then "warehouse" your loan for up to 60 days before selling it to secondary market investors, which can be Fannie Mae, Freddie Mac or other financial institutions. *Some specialized mortgages are kept by your bank in its portfolio and are not sold to investors. They are typically nonconforming loans that don’t meet the guidelines to sell on the secondary market. Examples include: jumbo loans and home equity loans. Your lender sells your mortgage to a secondary market investor that packages it together with hundreds of other loans and resells the package as an investment vehicle to Wall Street. Things have changed dramatically in the mortgage lending business in the last few decades making it more complex. If you have a mortgage, you may have applied and received the loan from one bank only to find out you would make your payments to another bank. Then, you may have received notice that your bank had sold your mortgage to another bank… Lender approves your mortgage and funds the loan. If the lender is a bank or credit union, the funds for the loan come from their deposits. If the lender is a mortgage banker that has no access to deposits, it accesses money to fund the loan from a credit line and then "warehouse" your loan for up to 60 days before selling it to secondary market investors, which can be Fannie Mae, Freddie Mac or other financial institutions. *Some specialized mortgages are kept by your bank in its portfolio and are not sold to investors. They are typically nonconforming loans that don’t meet the guidelines to sell on the secondary market. Examples include: jumbo loans and home equity loans. Your lender sells your mortgage to a secondary market investor that packages it together with hundreds of other loans and resells the package as an investment vehicle to Wall Street. Amounts Owed: How many credit accounts do you have and how much credit is still available on those accounts? Statistics show those with more credit accounts tend to use them, making them less attractive as far as credit scoring. The most attractive customer, reflected in a higher credit score, is one who uses credit sparingly and carries low balances. - To avoid foreclosure ("in lieu" of foreclosure), a deed is given to the lender to fulfill the obligation to repay the debt; this process does not allow the borrower to remain in the house but helps avoid the costs, time, and effort associated with foreclosure. - The release of relevant information about a property that may influence the final sale, especially if it represents defects or problems. "Full disclosure" usually refers to the responsibility of the seller to voluntarily provide all known information about the property. Some disclosures may be required by law, such as the federal requirement to warn of potential lead-based paint hazards in pre-1978 housing. A seller found to have knowingly lied about a defect might face legal penalties. - The hypothetical price that a willing buyer and seller will agree upon when they are acting freely, carefully, and with complete knowledge of the situation. - A lender may decide not to take legal action when a borrower is late in making a payment. Usually this occurs when a borrower sets up a plan that both sides agree will bring overdue mortgage payments up to date. - Government National Mortgage Association (GNMA); a government-owned corporation overseen by the U.S. Department of Housing and Urban Development, Ginnie Mae pools FHA-insured and VA-guaranteed loans to back securities for private investment; as With Fannie Mae and Freddie Mac, the investment income provides funding that may then be lent to eligible borrowers by lenders. - A term referring to a person or company that makes loans for real estate purchases. Sometimes referred to as a loan officer or lender. - 3 page document provided by the lender which includes a full set of government regulated loan disclosures, including the primary disclosure. Signed at time of application. - A charge by the lender to cover the administrative costs of making the mortgage. This charge is paid at the closing and varies with the lender and type of loan. A loan origination fee of 1 to 2 percent of the mortgage amount is common. - The company that collects monthly mortgage payments and disperses property taxes and insurance payments. Loan servicers also monitor nonperforming loans, contact delinquent borrowers, and notify insurers and investors of potential problems. Loan servicers may be the lender or a specialized company that just handles loan servicing under contract with the lender or the investor who owns the loan. - The amount a willing buyer would pay a willing seller for a home. An appraised value is an estimate of the current fair market value. Guaranty Mortgage Services, LLC Guaranty Mortgage Services, LLC, 5072 Bristol Industrial Way Suite F, Buford GA 30518 As you can see from the chart, when you pay rent, it does very little to build your net worth - you are actually helping your landlord build his wealth! In addition, you have no control over rent increases or the whim of a landlord. When you own a home, you have the option of locking in your monthly payment for 15 or 30 years, making it much easier to plan a budget. Both renting and owning give you flexibility and freedom, but in completely different ways. Owning a property gives you the right to make changes to your home, including decorating, landscaping, and remodeling. As a renter, you are very limited in what you can do - after all, it’s not your home! On the flip side, when you rent, it’s easy to move without the worry of selling. You are not tied to a home or a mortgage.