Obtain Homeownership with Georgia Dream Mortgage Products?

• Assess Your Finances: Review your income, expenses, and credit score.  A credit score of at least 640 is required to qualify for Georgia Dream programs.
• Set a Budget: Determine how much you can afford for monthly mortgage payments, including taxes and insurance.
• Prepare for Upfront Costs: Prepare for a down payment and closing costs over the amount not covered by the Georgia Dream down payment assistance, including taxes and insurance.

• Register for a Homebuyer Education Class: This is a requirement for Georgia Dream program participants. Classes are available online or in-person through HUD-approved housing counseling agencies.
• Each transaction is unique and there may be steps required by the approved housing counseling agency.
• Learn the Basics: Topics include budgeting, the homebuying process, and maintaining your home after purchase.

• Choose a Lender: Work with an approved Georgia Dream lender to understand your mortgage options.
• Each transaction is unique and there may be steps required by your Georgia Dream lender. To ensure the smoothest experience, please provide your lender with all the documentation they request at the same time.
• Gather Pre-Approval Documents:
  • 30 days most recent pay stubs.
  • Most recent two years W-2 forms for all applicants.
  • If applicable, for self-employed borrowers who own 25.00% or more in a company or for those that work for family members, provide their most recent two years of both personal and business tax returns, including an unaudited year-to-date profit and loss statement.
  • Bank statements for the most recent 60 days (to show assets and reserves). Georgia Dream Mortgage Products have a minimum required investment between $500 to $1,000. Your lender will verify that you have this minimum required investment based on the specific product requirements.
  • If applicable, a fully completed gift letter from an approved donor which your lender will assist in documenting. Gifts may typically cover the minimum required investment.
  • Employment verification (the lender will usually obtain this).
  • Credit report (the lender will obtain your credit report).
  • Written explanations the lender may request to answer questions regarding your application.
  • Your lender may request additional information during the loan application process.
• Current Financial Status: Please do not change your current financial status without contacting your lender first. If you change your financial picture, this can impact your ability to obtain either a pre-approval and/or qualify for a mortgage. For example:
  • Changing employment,
  • Decrease in income,
  • Obtaining new debt,
  • Missing any regularly scheduled payments,
  • Spending your monies needed to close,
  • Changing a gift donor/gift amount.

• Loan Processing: The lender verifies all the information you disclosed on your loan application with the documents both you and third parties provide.
• Loan Underwriting: The lender’s underwriter evaluates your ability to repay the loan and ensures the property meets loan requirements. If you meet the loan requirements, the underwriter will issue a pre-approval letter along with any conditions or requirements to obtain a final loan approval.
• Get Pre-Approved: Obtain a pre-approval letter from your Georgia Dream lender showing how much you can borrow. A real estate agent will typically request this to begin showing you properties and to enter into a purchase agreement.
• Georgia Dream Down Payment Assistance: If you and your lender choose this option, please keep in mind that your down payment assistance will be in the form of a 0% interest second mortgage with no monthly payment. This is a non-forgivable mortgage, not a grant.      This mortgage must be repaid if you sell, refinance, or transfer title to your home. 

• Choose a Real Estate Agent: Choose a knowledgeable agent familiar with the Georgia market and is reputable.
• Search for Homes: Tour properties within your budget and prioritize your needs vs. wants.
• Make an Offer: Work with your agent to submit a competitive offer based on the home’s market value. Ask your agent if the seller is willing to pay any of your mortgage closing costs to help reduce your cash needed to close.

Finalize your loan application and submit any additional required documents to your Lender.

• Provide Documentation:
  • Updated pay stubs, tax returns, and bank statements.
  • Purchase agreement for the home.
  • Gift letters (if receiving down payment assistance from family or grants).
• Lock Your Interest Rate: Decide with your lender when to lock your rate.
  • This will typically happen when you have been both pre-approved by your lender and you have entered a purchase agreement contract on the property you have chosen.
  • Your Georgia Dream interest rate lock (reservation) is generally 75 calendar days. You will need to close your loan by this date and/or the purchase agreement closing date whichever occurs first.
• Appraisal: The appraisal is both ordered and received by the lender to confirm that the appraised value meets or exceeds the purchase agreement sales price and/or there are no repairs required.
  • If the appraised value is less than the sales price, typically you may need to renegotiate the sales price with the realtors and/or seller.
  • If any repairs are required, the repairs must be completed by closing and the appraiser must provide evidence the repairs were completed.
• Title Work: The lender’s processor will typically order the title work on your property to ensure there are no legal claims or issues that could affect either your buyer rights or the lender’s rights to the property. The lender’s underwriter will review for acceptance.
• DCA Compliance Underwriting Review:
  • The lender’s underwriter will review your file to ensure that all loan conditions have been met to include DCA’s requirements.
  • The lender’s underwriter will submit your loan to DCA for a compliance review to issue a loan approval commitment meeting DCA requirements. This process takes at least an additional 10 business days. This could take more than 10 business days in peak buying seasons, i.e., spring or summer.
  • DCA compliance underwriting may require additional documentation or written explanations to answer questions regarding your application which the lender’s underwriter may not have obtained.
• Final Loan Approval: Once DCA's compliance underwriting team issues a loan approval commitment, the lender’s underwriter will issue a final loan approval commitment outlining the loan terms.
  • This is also when your lender’s underwriter will release your loan to their closing department to begin preparing your closing package which is typically emailed to your closing agent.

• Home Inspection: Schedule a professional inspection to identify potential issues with the property.
• Homeowners Insurance: Purchase a policy to protect your investment.
• Review Closing Disclosure: This document, provided at least three days before closing, details the final loan terms and costs.

• Attend the Closing: Bring required documents (e.g., government-issued ID) and funds for closing costs.
• Sign Documents: Review and sign legal and loan documents.
• Receive the Keys: Once the transaction is finalized, you will officially own your home.

• Budget for Expenses: Account for property taxes, insurance, homeowners association dues, and maintenance. Remember, you will no longer have a landlord to make repairs or handle maintenance issues as when you were previously renting. Plan on saving and having a rainy day type of fund to cover unexpected expenses.
• Build Equity: Make on-time payments and consider refinancing options if rates drop or your financial situation changes.