Are you in the process of purchasing an Atlanta new home? If so, you are in good company! The Mortgage Bankers Association (MBA) announced that number of home buyers applying for mortgages for the week ending Nov. 19 is at the highest level since the beginning of May. “The increase in purchase applications last week aligns with other incoming data suggesting that consumers are feeling somewhat more confident with their financial situation,” said Michael Fratantoni, MBA’s Vice President of Research and Economics.

The MBA survey has been in place since 1990. Covering more than 50 percent of all U.S. retail residential mortgage applications, MBA surveys mortgage bankers, commercial banks and thrifts on a weekly basis.

The Purchase Index showed an increase of 14.4 percent over the previous week, which included Veterans Day. No adjustment was made for the holiday, so the numbers may be a bit optimistic. . . but so are we! Because this is the highest Purchase Index recorded since the week ending May 7, Atlanta Real Estate Forum sees this as a positive sign.

Interest rates are also creeping up, perhaps another positive signal (as long as they don’t go too high). The average contract interest rate for 30-year fixed-rate mortgage increased to 4.50 percent from 4.46 percent, with points decreasing to 0.88 from 1.12 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. This is the highest 30-year fixed rate observed in the survey since the week ending September 3, 2010.

Mortgage applications increasing is a good sign, but in lieu of the mortgage rate increases, if you are looking to buy at the bottom act fast!

Looking for a new home in the Metro Atlanta area? Purchasing a home in Gwinnett County will get you $5,000 down payment incentives, special interest loans as low as 3.49% and more.

Gwinnett governments, banks, mortgage companies, the Community Foundation for Northeast Georgia, the Impact Group, and the Gwinnett Housing Authority have collaborated on a package for homes and lots purchased in Gwinnett County that essentially “continues” a similar version of the federal homebuyer tax incentives that expired April 30.

• Approximately $5,000 down payment incentive for newly constructed homes priced up to $205,000.
• Through a coalition of Gwinnett banks (The Brand Banking Co., Independence Bank of Georgia, Legacy State Bank, Piedmont Bancorp, Gwinnett Community Bank, Quantum Bank), special financing and products are being offered that homebuyers can’t get anywhere else in the market. The program is also open to other banks’ participation. These products include:
• 6.49% financing, on select homes, for borrowers needing time to improve credit.
• Special loans for select houses as low as 3.49% for homes purchased in Gwinnett.

For more information or to take advantage of any of these incentives and products, please contact Doris Tarver at Doris.Tarver@gwinnettcounty.com or Bill Megaro at Bill.Megaro@gwinnettcounty.com to secure the funds.

For a list of communities, please contact Chris Hill at 770.822.2420 or chill@brandbanking.com

Now that the federal Home Buyer’s Tax Credit has expired, many thought home-buying activities would dry up. Unlike last winter, the credit has neither been expanded nor extended, and industry watchers have worried that home prices might see a “double dip” without the stimulative effect of the money.

I predict a continued recovery in prices & activity, and I have three reasons for believing it:

● The overall economy is improving. Slowly but surely, people are feeling a little better about their own financial situation, and that translates directly into spending. The more spending that occurs, the better the economy. The better the economy, the more jobs that are created. The more jobs that are out there, the more houses that sell.

That’s an oversimplification of an extremely complex situation, and we still have a long way to go, but things are definitely better than they were a year ago, and most believe better times are ahead.

● Interest rates are still extremely attractive. And I’m not talking about some weird adjustable rate instrument that is tied to an offering of inter-bank rates in London. I’m referring to the all-American 30-year, fixed-rate loan that our parents had on the house in which we grew up.

Most Americans are firmly convinced that a single-family house in a good neighborhood in a growing community is a solid investment, and they are right. And if you can lock in a good price with a low fixed interest rate, you add strength to your financial position by being able to predict your housing expense into the future.

With 30-year money in metro Atlanta easily available in the low 5-percent range, no one can complain that overall housing expenses are excessive.

● And what about the loss of the tax credit? I don’t think it will matter.

The housing market in our metro is still soft enough to absorb the financial hit. By that I mean a savvy shopper who isn’t afraid to negotiate can expect to buy a house in this market at enough of a discount to offset the lost tax credit.

Sellers are painfully aware that price sells houses, and I expect builders to offer their own version of a “home buyer’s discount” as a way to incentivize the home-buying public. Owners of resale homes will follow suit.

Is that a cheap and crass marketing gimmick designed to fool the public into thinking they are getting a benefit that they truly are not receiving? Yes.

Will it work? Yes.

By John Adams
For the AJC

John Adams is an author, broadcaster and investor. He answers real estate questions on radio station WGKA (920 AM) at noon on Saturdays. For more real estate information or to make a comment, visit www.money99.com.

Well, there’s really only one “snapshot” Atlanta new home buyers need to worryabout – the “snapshot of your financial life” that’s portrayed in your credit report. That’s the way Equifax Personal Finance Blog, expert Robin Holland describes it.

In a recent post, “What’s in My Credit Report?” Holland describes the four primary categories of information in an Equifax credit report. Identifying information tells them about you – when you were born, where you live, your Social Security number and possibly where you work. The information is provided by lenders, and it helps everyone verify they’re looking at the right person and not someone else with the same name.

The second section describes your credit accounts and payment history, while the third section shows who has made inquiries into your credit over the last two years. The post describes the types of inquiries, which are viewed differently by potential lenders.

The final section may be Public Record and/or Collection Information (this is not included in all reports). If you’ve had an account go to a collection agency, have a tax lien or bankruptcy, that information would appear here.

The Equifax Personal Finance Blog,is an excellent place to learn more about the mysteries of credit reporting. You’re encouraged to ask questions of the experts and make comments on their posts. A quick look may relieve some of the common worries about qualifying for a mortgage. Check it out and join the conversation today.