Mortgages

Buying a home for the first time can be a very daunting experience. If you are not well-prepared you could end up with an unmanageable loan or no loan at all. So, to help avoid these problems, our team at Milend, Inc. have listed five of the most common pitfalls all first-time homebuyers should avoid.

#1. Not Knowing Your Affordability

When beginning the home buying process, it is important to know your affordability. Talk with an Atlanta mortgage lender ahead of time so they can review your finances and let you know what price range to shop in. Knowing this amount can help save time when shopping in the residential market by avoiding homes that are outside your budget. It can also prevent you from stretching your finances to the highest possible limit.

#2. Making Too Small A Down Payment

For most Atlanta mortgages, you should pay at least 20% of your homes down payment. If you put down less than 20%, you will be required to get private mortgage insurance (PMI), which is an additional fee you will have to pay to protect the lender. This insurance is paid for by the borrower but only protects the lender in case the borrower defaults on their mortgage. Therefore, start saving now to avoid these extra fees before you begin the mortgage process.

#3. Making Multiple Large Purchases

Buying a new home does not mean everything else you own has to be brand new. Avoid making large purchases until after your loan is finalized that way your credit score is not affected while your loan is trying to get approved. Your credit score has a big impact on the mortgages you can qualify for and the type of interest rates you will receive. Therefore, pay off loans with high-interest and avoid making multiple large purchases such as a car or boat until later.

#4. Neglecting Government-Backed Loans

Government-backed loans are mortgages that are insured by the government. These loans offer a zero to low down payment requirement and have low-interest rates. You can apply for an FHA loan, a USDA loan, or a VA loan. Talk with your Atlanta mortgage brokers for more information.

#5. Not Shopping Around

You have no financial obligation to commit to the first mortgage lender you talk to. Instead, shop around the market and compare the prices being offered by different lenders. That way you can confidently choose the lender who is offering you the lowest price.

Contact Us

For more information on common pitfalls to avoid as a first-time homebuyer or to get started on your Atlanta mortgage application, please contact Milend, Inc. at 855-645-3631.

Meeting with your Atlanta mortgage broker for the first time can be an exciting yet daunting experience. Making sure you are fully prepared is what most first-time homebuyers are concerned about. Well here at Milend, Inc., our team of experts have come up with some helpful tips to prepare you for your first meeting with a mortgage professional.

Tip #1:  Don’t Hide Anything

Most first-time buyers do not realize that your local mortgage lender should be your go-to person throughout the Atlanta mortgage process. This means that whenever you make a financial decision, they should be the person you contact. Do not try to hide anything from them in regards to financial matters. Be upfront if you have had to file for bankruptcy or are in a lot of debt. This doesn’t mean that they won’t be willing to work with you, it just means they might have to overcome some obstacles along the way to ensure you get the best mortgage for your financial situation.

Tip #2:  Have All The Appropriate Documents Organized

Be sure you are organized and prepared for your first meeting. To start, you should gather all the important financial documents that your mortgage lender is going to want to review. This includes, but is not limited to, personal ID, proof of income, property titles, assets, any debt you may have, current bills, and bank statements reviewing your savings. For more details on the documents you should bring, please call 855-645-3631.

Tip #3:  Know What Your Goals Are

Go into your meeting having an idea of what type of goals you wish to achieve with your mortgage. Discuss with your Atlanta mortgage lender your long-term plans, whether it is to have a mortgage paid off in 15 years, or if you wish to have a fixed rate mortgage so you can budget accurately and not have to worry about fluctuating rates. Whatever the case may be, share this with your lender so they can help prepare the most appropriate loan for you.

Tip #4:  Ask Questions

With countless mortgage options available on the market it can be confusing trying to understand what the difference between every loan is. Don’t be afraid to ask questions if you do not understand something because your lender knows how confusing it can be. They can educate you throughout this process and answer any questions you have so you confidently know exactly what terms you are agreeing to.

Contact Us

When searching for “mortgage lenders near me”, choose Milend, Inc. Our team of experts would love to work with you and help make your dreams of homeownership come true. So don’t wait, call our office today at 855-645-3631 to get started.