Mortgages in Atlanta | A Beginner’s Guide

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Despite of its continuously growing population, Atlanta is still one of the most sought out regions for residential purposes. However, buying a home in Atlanta implies that both buyers and sellers have to undergo a cumbersome mortgage process involving documentation, official approvals and several legal formalities. Moreover, if you don’t have a healthy payment record, or you are self-employed with variance in payment schedules, the authorities your application could be turned down. However, before throwing in the towel, or entirely giving up on settling in Atlanta, read these mortgage and home loan tips that can lend you a hand.

Find a Mortgage broker or an Intermediary Agency in Atlanta

It is true that mortgage agents have somewhat of a shallow reputation due to high commission rates and not so stellar results. However, if you are in capable hands of a professional mortgage broker, it will result in getting loan sanctions, flexible payment terms and a smooth approval process.

Obviously, like in any other area, mortgage brokers local to the Atlanta region have the advantage of knowing the field of banks and credit officers, thus maximizing the buyer’s chances of getting a home in Atlanta for a reasonable price.

Usually, people prefer to contact banks and loan officers directly, which limits them to dealing with one person or agency at a time. A broker, on the other hand, has connections that aid in getting easy mortgage approvals, minimum down payment, and a low percentage APR to reduce any unforeseen financial injuries.

FHA Loan Programs in Atlanta

FHA or the Federal Housing Administration loans are not the ideal option in most cases. Despite of the fact that FHA programs allow for minimum down payments, borrowers are also looking to pay for mortgage insurance to help protect lenders from any future loss.

In Atlanta, FHA loans are gradually growing more popular. People with qualified credit scores (500 and above) that meet the minimum down payment and other criteria tend to get approved. However, their down payment and interest rates vary according to the overall loan payment history. Some people get to pay a minimum of 3.5% down payment, while others have reportedly paid up to 10% and even more to ensure against possible bankruptcy.

Apply for Multiple Mortgage Quotes

Home buyers normally have a 2 – 3 weeks’ grace period where they can get more than one mortgage quote. Most people don’t go through the “hassle” of getting multiple mortgage quotes, but it is worth it. Each lender has different evaluation criterion, which means that when they pull someone’s credit score, their quote varies from person to person. One thing to be aware of, though, is that getting an official pre-qualification letter from the bank involves a hard inquiry on the credit report, which may lead to a temporary decrease of your credit score.

The best way to go about it is to get a mix of online mortgage quotes for Atlanta residential areas, as well as get in contact with lenders within the local vicinity. Eventually, you can take the best offer with payment plan and terms that suit your projected income.

All in all, Atlanta has plenty to offer to those who choose to live there on long term basis. With a strong cultural heritage, supportive neighborhoods and historical significance, the warm-hearted folks of Atlanta are always willing to welcome new addition to the local community.