Relevant Real Estate Issues

  • What is Asset Dissipation? (A/KA Asset Depletion)

    Using assets for qualifying income to demonstrate an ability to make mortgage payments. Asset depletion mortgages, also known as asset dissipation mortgages, enable borrowers to use liquid assets to qualify for a mortgage.  Asset depletion mortgages are good for borrowers with relatively minimal income or no verifiable employment but significant assets such as funds in a bank, investment or retirement account.  Examples of potentially applicable borrowers include the self-employed, retired (or almost retired) and wealthy.

    Fidelity Bank Mortgage uses a formula to calculate the income that could be generated by depleting a borrower’s liquid assets over a fixed period of time and use that

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When is the best time to list and sell your home?  When you consider the various times of the year you will have to consider the impact of prior sales on your home.  This is the major consideration when you would consider listing and selling your home.

List & Sell Your Home in the Fall

Fall begins September 22 and lasts through December 21.  As you consider the Fall as a time to list and sell your home; this is a good time to do so.  In the Fall when an appraisal is done on your home you have the benefit of the highest sales of the year.  This means that you will benefit from the sales that have occurred in the Spring and Summer.  Most appraisals will use comps to evaluate your home that has occurred in the last six months.

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There are a number of things that will affect your appraisal.  These items listed below are not the complete list of items that will affect your appraisal.  But they are some of the most significant.  Each of these will require an adjustment on your appraisal.

Being the First Home in the Community

This has occurred multiple times over the years.  Sellers do not necessarily agree with it. 

We had done our Market Analysis on a home in Braselton a couple of years ago.  It was the first home in the subdivision.  Our analysis determined that the home would sell for about $25,000 less than an interior home would sell for.  Our analysis suggested the home was worth around $295,000 before our adjustment for being the first home in the

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As an active duty service member, Veteran, or surviving spouse of a Veteran, you have sacrificed and served our country well. Fidelity Bank Mortgage appreciates your service! We’re here to thank you for your sacrifice and contribution with our VA loans. You deserve the home of your dreams and we offer a VA loan that can help you get there.

What is a VA Loan?

A VA loan is insured by the U.S. Department of Veterans Affairs and issued by VA approved lenders. This government guaranteed loan enables these approved lenders to lend with more flexible and lenient qualifying guidelines. Since this military loan guarantee program was first created in 1944, more than 20 million Veterans and their families have been helped with affordable home financing.

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As a result of the Financial Crisis, there have been many changes made to how appraisals are performed.  The reality is that lenders usually do not have the ability to order an appraisal directly from the appraiser.  They are now required to contact an Appraisal Management Company to order an appraisal. 

The Process

Once the lender has ordered the appraisal for the AMC, the AMC assigns the appraisal to an appraiser.  Once an appraiser is confirmed, the appraiser will reach out to the listing or selling agent.  I always make sure that I am the contact for the appraiser; whether representing the Buyer or the Seller.  Once the appraiser reaches out to confirm an appointment; I always meet the appraiser at the home.  Once the appraisal is

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I am frequently asked by homeowners for suggestions on how to maintain their home or what they need to do as preparation to sell their home. I always recommend a pre-listing inspection because you don’t end up having to renegotiate the price after the buyer has an inspection done. However, in these tough economic times people’s budgets are tight so here is a checklist of some things to look at.

  • Clean the gutters and remove debris from the roof. Example: pine straw collecting in the valleys, small tree limbs.
  • Remove tree limbs overhanging the roof and or limbs with direct contact to the roof shingles.
  • Remove grade or pine straw/mulch from contact with siding. Provide a minimum 6” clearance between the ground and sill plate to prevent water
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The reason it seems like it is so hard to get a mortgage approved when you are self-employed is actually twofold. First, the document-gathering-discovery-phase is especially rigorous and second, the evidence requirements have so many more moving parts and potential landmines.

Just what is the liquidity test?

The liquidity test measures the ratio of liquid and near-liquid assets to current liabilities.  There is no liquidity test for all regular W2 income folks.

Self-employed folks documentation begins with 2 years of tax returns; personal and business, all pages, all schedules, all everything. Add in the year-to-date Profit & Loss Statement, current Balance Sheet, a letter from an accountant proclaiming that the business has been a going

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There are several professions that require advocacy.  Among them are Attorneys, CPA’s, and Real Estate Agents.  As you consider these; Attorneys have to go through law school before they can become an advocate.  CPA’s generally spend some time in public accounting to learn how to become an advocate.  Real Estate Agents are considered advocates after they have concluded a 75-hour real estate class.

One Who Appears on Behalf Another, and Who is Called to Provide Support

In the case of Real Estate the only way that one can appear on behalf of another, is to be a client.  This is not much different than Attorneys and CPA’s.  In order to be a client, one has to sign a  Buyer Brokerage Engagement; or as a Seller sign a formal Listing

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New Construction Contracts

There is a lot of differences between landing on a new construction property and landing on a resale home.  There are numerous differences between both.  In this article, we will try to identify some of the critical issues that you will be confronted with when buying a new home. 


Contained within our GAR Forms, we have a new construction Purchase & Sale Agreement.  However, most builders have their own Purchase & Sale Agreements.  The GAR forms usually contain about ten pages.  Most builders have their own forms and most of the Purchase & Sale Agreements; which are somewhere between 40 and 60 pages of fine print. 

In most cases agents do not read them, to identify items that can adversely affect

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I initially began purchasing rental property as a way to diversify my wealth-building strategy. After I acquired three houses, I noticed that over the course of six months, my rentals were far out-performing my IRA and 401(k). I decided to pull my money out of the financial markets and reinvest it into building a strong rental portfolio. I’m not saying that this is a strategy everyone should employ, but I will say that anyone looking to build wealth should at least review the real estate investment vehicle.

The housing market crash has become a distant memory, and home prices are looking healthy again. That means there are good opportunities for investing in the residential real estate market.

If you’re ready to borrow for a residential

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