Mortgage regulations have changed …
Mortgage regulations have changed significantly over the last few years, making your options wider than ever. Subtle changes in the way you approach mortgage shopping -- and even small differences in the way you structure your mortgage -- can cost or save you literally thousands of dollars.
What should I know before looking for a metro Atlanta home to buy?
Whether you are about to buy your first home -- or are planning to make a move to your next home -- it is critical that you know about several factors involved. Industry research has revealed that there are five common mistakes that most Atlanta area home buyers make in mortgage shopping that can have a significant impact on the outcome in this critical negotiation. With our help, these issues could result in a mortgage that will cost you less over a shorter period of time.
Five things you must know before obtaining a mortgage for an Atlanta area home
Before you commit your money to monthly mortgage payments, consider these five issues. Effective consideration of these important areas can make your home payments work for you.
It’s a very good idea to get pre-approved prior to shopping for Atlanta area real estate
Pre-approval is easy and can give you complete peace-of-mind when shopping for your home. Your local lending institution can provide you with written pre-approval at no cost or obligation. It can all be done quite easily over the phone. More than just a verbal approval from your lending institution, a written pre-approval is as good as money in the bank. It entails a complete credit application, and a certificate, which guarantees you a mortgage for a metro Atlanta home
for a certain amount when you find the home you’re looking for.
Know how much you’re comfortable paying each month for an Atlanta home
When you discuss mortgage pre-approval with your lending institution, find out what level you qualify for. Beforehand, pre-assess what monthly dollar amount you are comfortable with. Your situation may give you a pre-approval amount that is higher (or lower) than the amount of money you would want to pay out each month. By working with your lending institution to determine what this monthly amount is -- and how much you can afford -- you won’t waste time looking at Atlanta area homes
that are not in your price range.
You should be thinking about your long term goals to determine the type of mortgage that will best suit your home buying needs
- We offer our real estate expertise in helping you decide the type of mortgage that’s right for you. Consider these questions when deciding on your home mortgage. How long do you think you will own this home? In which direction are interest rates going and how quickly? Is your income expected to change (up or down) in the near future, which will impact how much money you can afford to pay on your mortgage? The answers to these and other questions will help you determine the most appropriate mortgage for you. We’ll help you with any questions you have.
Make sure you understand what pre-payment privileges and payment frequency options are available to you
- More frequent payments (i.e., weekly or biweekly) will shave years off your mortgage. Simply by structuring your payments so that they will come out more frequently will significantly decrease the amount of interest that you will be charged over the life of the loan.
- For the same reason, authorized prepayment of a certain percentage of your mortgage -- or an increase in the amount you pay monthly -- will have a major impact on the number of years you will have to pay. These two payment options can cut years off your mortgage and save you thousands of dollars in interest. However, not every mortgage has these prepayment privileges built in and some may charge an extra fee. We’ll help you find the right ones for you.
Using a mortgage expert can save you time and money so shop around for one that's right for you.
- Consider dealing only with a professional who specializes in mortgages. Enlisting their financial services can make a significant difference in the cost and effectiveness of the mortgage you obtain. For example, they can make the process faster thereby avoiding costly delays. Typically there is no cost or obligation to inquire. We can direct you to professional mortgage experts.