Georgia home loan laws

Posted by  on Apr 16, 2009
Whether you’re buying your first home in Georgia or relocating to Georgia from another state, you will need to do your homework before purchasing property in this state with a home loan. It is very important to be educated on how Georgia home loans work before shopping around for a home and a mortgage. There are several things to consider if you’re in the market for a Georgia home loan.

There are many reasonably priced homes in the state of Georgia. The median price of a home in Georgia is $111,200. Homes in Georgia, however, appreciate at less than half of the rate of the national average for home appreciation. Job growth in Georgia is also quite a bit lower than the national average. You may think this doesn’t apply to you, but it’s important to consider unexpected future changes in employment and income.

The levels of income in many parts of Georgia are actually too low to purchase a median-priced home with a traditional home loan. A traditional home loan requires a payment of 20 percent of the loan value up front. This lump sum may be too much for some prospective buyers to come up with at one time.
The average interest rates on a mortgages loan in Georgia are just .01 percent higher than the national average interest rate.

The interest rate of your mortgage loan should be considered along with the total cost of the home. Prices for homes in Georgia vary quite a bit between zip codes. Just as an example, in the summer of 2005 the median price of a home in Snellville, Georgia, was $148,000. The median price of a home in Buckhead, Georgia, was $450,000. A higher than average interest rate may not affect those purchasing a $100,000 home very much, but it can add up for those spending half a million dollars on their first home.

Georgia has very strict mortgage lending laws that do often benefit home buyers. In fact, the laws in this state are stricter than in any other. The Georgia Fair Lending Act bars any financing of credit insurance or debt cancellation coverage. Georgia laws also limits both late and payoff fees. Georgia limits all home loans, however, as opposed to the high-cost loan provisions of other states with comparable anti-predatory lending programs. This is a good thing if you’re shopping for a home loan, because it prevents outrageous fees and interest rates.

Georgia’s Second Mortgage Loan Program is another good thing for people in certain professions searching for a home loan. The program offers down payment home loans at zero percent interest to police officers, firefighters, educators, and healthcare professionals. Georgia also has a Fair Housing Law that forbids mortgage discrimination against people because of their race, color, gender, religion, familial status, or national origin.

These are the basic issues to be aware of with Georgia home loan laws and practices. The next step for home buyers is to shop around for the right home with the best mortgage loan rates.


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