Before you begin the application process for an Atlanta mortgage, such as with MiLEND, Inc., there are a few useful questions you should ask a mortgage professional. So, to help you get started, your local mortgage lender with MiLend has listed 5 useful questions that every first-time buyer should know before they begin the process of becoming a homeowner.
Question #1: What If I Don’t Have A Perfect Credit Score?
Having a perfect credit score is not a pre-requisite in becoming a homeowner. The best Atlanta mortgage lender should do everything they can to help ensure you get a low rate on your mortgage.
There are also government-backed loans, such as an FHA loan, that has a minimum credit score requirement which are generally much lower than a conventional mortgage loan requires and is perfect for those who have a low credit score and a low income.
Question #2: Should I Get Pre-Approved?
Getting pre-approved has a lot of additional benefits for you while you begin the application process. For example, your mortgage lender will review your finances and let you know your affordability through a pre-approval, this can help you save time when viewing different homes so you avoid shopping outside your budget.
Also, most real estate agents refuse to work with buyers who have not been pre-approved, so if you wish to work with a professional and have more access to real estate listings, then getting pre-approved might be your best option.
Question #3: Do I Have To Use The Same Lender That Pre-Approved Me For My Mortgage?
If you get pre-approved, you do not have to use the same Atlanta mortgage lender for your mortgage application. You have no financial obligation to work with them and instead, you can shop around with different lenders to find the one that gives you the best deal for your goals as a homeowner. With that being said, the Lender you are pre-approved with will be able to process and close your loan faster because they will already have your information.
Question #4: What If I Pay Less Than 20% Towards My Down Payment?
If you pay less than 20% for your down payment, you will be required to obtain private mortgage insurance. This is a fee that can either be added onto your mortgage payments every month or is a one-time upfront cost. This insurance is required so the lender is protected in case the borrower fails to make a mortgage payment.
Question #5: Is A 15-Year Mortgage Better Than A 30-Year Mortgage?
A 15-year mortgage is not necessarily better than a 30-year mortgage, it just depends on what you are trying to achieve. If you want to have a higher monthly payment but pay less in interest over time or just want to pay your mortgage off quicker, then you should look into getting a 15-year mortgage. However, if you have a lower income and are wanting smaller monthly payments with a higher interest rate, than a 30-year mortgage may be your best option.
If you would like to receive more information on the top 5 questions to ask your Atlanta mortgage lender or if you are looking to begin your home loan application, please contact the MiLend team at 855-645-3631. All of MiLEND’s Mortgage Loan Originators are State licensed in whatever States they do business in and are registered with the Nationwide Multistate Licensing System (NMLS) as a professional Mortgage Loan Originator.