If you have decided you would like to use the services of an experienced Atlanta mortgage broker so that you can find the correct home-financing option that matches up to your needs, you must ensure that you find a professional that is right for you.
Similar to other professionals, mortgage brokers should also match up to a certain standard. This means that the person you choose should at a minimum meet or ideally surpass these standards. At the same time, there are also other important features that a great broker should have.
With this in mind, below are the steps you can take to choose the right Atlanta mortgage broker for you.
#1 Ask For Referrals
Your real estate agent, colleagues, friends, a neighbor, or a relative may know of a professional, local Atlanta mortgage broker. In these cases, this could be the easiest way to find a broker that will assist you along the journey of finding the right home financing option.
#2 Can Your Atlanta Mortgage Broker Help You To Save Money?
Mortgage brokers usually earn a living through commissions made on loans. These brokers hold value by helping their clients obtain more affordable solutions on a home loan. If your mortgage broker can assist you in saving money, then their commission fee should not become a deterrent. The fee should be less or equal to the amount you are going to save by deciding to hire them.
#3 Find Out Who Is On Their Broker’s Lending Panel
There is much to learn from broker’s lending panels, particularly when it comes to their experience and work. That’s why it is important to find out whether your potential broker works with a variety of well-known and reputable institutions. If they don’t, you could end up losing out on the best home loan offers. The Atlanta mortgage broker should tell you about all the lenders they use, and why and how they use these lenders.
When obtaining a loan, it is vital to make sure the product you choose can match up to your needs. You should ask your broker why they are suggesting a specific lender and what the lender has to offer. It is also important to know that large lending panels won’t always translate into the best service. Ultimately, it comes down to what you actually need and want.
Your mortgage broker should also explain all the documentation or paperwork linked with a loan application. This will ensure that you are aware of exactly what you are getting.
#4 Clear Communication
Having to deal with financial matters can become frustrating and complex, especially for home buyers that have never applied for a home loan before. For this reason, you need to choose a mortgage broker that effectively and clearly communicates these financial concepts along with the complex mathematical calculations. They should also practice patience with their clients if they have any questions. You need to make sure your broker can communicate clearly and quickly when you need a question answered.
#5 Choose An Atlanta Mortgage Broker That You Can Use Again In The Future
While it is not possible to predict the future, it is safe to assume that many people that use a mortgage broker to obtain a home loan, often become repeat buyers.
People buying a home for the first time are particularly important to mortgage brokers as they are important to a first-time mortgage applicant. This is because a first-time homebuyer typically becomes a move-up buyer or refinancer.
If you are applying for a loan for the first time using a mortgage broker, you would probably want to use their services again when you decide to buy a new home. This will obviously depend on what type of experience you achieve with your mortgage broker. This means that they have demonstrated the traits that we mentioned above.
Do they offer a range of affordable solutions and products? Have they been in this industry for a long time? Do you feel confident about working with this broker for any other home-financing requirements in the months or years to come?
It may sound silly or strange, but when you decide to work with an Atlanta based mortgage broker you should view it as a long-standing relationship. When you want to buy a bigger home or a holiday home you have always dreamed about, or you want to refinance, it is nice to know that you have a broker you can rely on for these financial situations.
It is common for potential house buyers to doubt mortgage advice and if they have made the correct offer when buying a house. Homeowners looking for capital to remodel major parts of the house may also struggle to secure the required financial resources.
Access to the right type of financing is equally important for holders of those mortgages with an available room for refinancing with cheaper debt. For many, the lack of the best financing options is likely to cause the biggest difficulty for flexible homeownership.
In the past, it was rather easy to secure a mortgage with a bank and many people hardly questioned the vital terms of a loan contract such as repayment periods and interest rates. Time has changed now; there are numerous loan products in the real estate finance markets and lenders have become more stringent when approving mortgages.
It is to the detriment of the homeowner if they end up securing mortgage terms without carrying out a good comparative study of the available options. Potentially, a lot of money is lost by the mortgage holder in interest savings and their loan repayment credibility might be affected.
Here are the ways a mortgage broker will assist you to get a good mortgage advice:
1. Mortgage Brokers Know of Lower Rates
This is probably the most important reason for having a mortgage lender at your corner. Mortgage brokers are trained professionals who accumulate lots of information on current lenders and lending rates in the market.
In most cases, many mortgage brokers access market information before it is officially advertised to the market by a lender. A mortgage broker will guide you to select the most competitive rate among many mortgage products provided by various credit unions or banks.
2. A Mortgage Broker Provides Easy Accessibility to Lenders
By practice, it is not uncommon for lenders to insist on having a mortgage broker as an intermediary to potential mortgage holders. In these instances, the mortgage broker assesses the suitability of the lending institution to your financial needs and also negotiates for the low terms with the lender on your behalf.
From work experience, all reputable mortgage brokers have built sound relationships with most mortgage lenders. Most borrowers who overlook the need for mortgage brokers end up paying stiff prepayment penalties when they break the mortgage contract at a future date.
Prepayment penalties coupled with high-interest rates can adversely throw your finances completely off the mark.
3. Will Help You Get a Customized Mortgage Product That Fits Your Needs
Securing the right mortgage product is not a case of “one-for-all” and to a large part because no piece of real estate is truly similar to another. Different homeowners will probably need different loan terms. A mortgage broker will help you tailor the ideal mortgage product based on your financing requirements.
Depending on what you need, mortgage advice will get to the bottom of what to recommend and explain why you might need softer prepayment terms, flexible repayment schedules and can also direct you to lenders who can process a mortgage for self-employed individuals who might have irregular incomes streams.
From the expansive data they have accumulated in practice, brokers can help you find the ideal mortgage lender and product at affordable rates and upon an assessment of your financial position and needs.
4. Professional mortgage advice throughout the Process
All lenders have made the loan qualification and approval process rather strict as a means to self-protect from bad loans. There are many requirements and steps involved and the likelihood is high for a lender declining to a loan request is high. A solitary mistake can bring your real estate investment plan to a halt.
For this reason, it is important to have a broker by your side who will guide you all along the loan application process until you have successfully closed on a good mortgage financing deal.
5. No Cost
Mortgage brokers are compensated from the lender’s side through commissions. A potential homeowner seeking mortgage brokerage services does not have to pay the brokers any fee.
However, you might have to pay the broker if you are dealing with a private mortgage lender or a lender who by operation does not pay broker fees. In any case, the mortgage broker will notify you of possible costs well in advance.
6. A Mortgage Broker Makes a Case for a Good Credit Score
Having a mortgage broker reduces the work and time the lender needs to check your credit performance. The lender is forced to carry out a hard check of your credit score every time you apply for a mortgage without a broker’s input. Your credit score falls when you attempt the application process multiple times without a broker.
On the other hand, when you as the homeowner, use a mortgage broker when applying for a loan, your credit score is protected because the lender will have to check your score one time.
7. A Mortgage Broker Helps You Save Time
It can be a lengthy and conflicting process for one who is deciding whether to dedicate time to sourcing lenders and making appointments with lenders or to searching for the house you want.
A mortgage broker has characteristic business relations with many lenders, mortgage institutions, banks and other mortgage lending institutions. From expert know-how, mortgage brokers can quickly source lenders and recommend the mortgage product and general mortgage advice that best fits your needs.
A mortgage broker will assist you to come up with a comprehensive breakdown of comparative mortgage options thus making your work easy and convenient for you.
A mortgage broker offers invaluable input to a potential mortgage borrower guiding you with the best mortgage advice every step of the way. When you need to secure a mortgage always consult your broker to find out the best opportunities available.
So, you have finally found your dream house and made an offer. Best still the offer has been accepted, what to do now? Or maybe your old mortgage is up for renewal and you are in the market for a better deal.
There was a time that you would simply walk into a bank and request a mortgage. If you were offered one, you would simply accept the deal, with due obeisance, and be on your way.
But, these days are long past and the game favors the borrower in many regards. Today you get to shop around and potentially save thousands of dollars in interest and avoid some of those institutions that have more stringent criteria for approving their mortgages.
Considering this, you are going to need an expert to help you find the best deals on the market.
Here are some of the reasons to consider a mortgage broker in Atlanta
1. Lower Rates
One of the most important advantages of seeking out a mortgage broker is that these professionals have access to many deals you will not find yourself in, even if you look very hard. A mortgage broker in Atlanta may even have access to rates that are not advertised to the public and these can be substantially smaller than those you will find from a bank or a credit union.
Mortgage brokers have access to all kinds of products and rates. Additionally, these experts will be able to vet lending institutions and negotiate rates and more. A good mortgage broker will also have a special relation with banks and this can be very advantageous. You may find a way to avoid severe penalties and more if you have to break the mortgage for any reason. When combined with the potential for lower interests rats, the savings could be way up in the thousands.
After taking the time to understand your case better, a mortgage broker will be able to find you a deal that suits your purposes. This could be working with a lender who offers a flexible payment plan or one who is more likely to make an offer to a self-employed borrower. Once again this is an advantage that comes from a wider range of lenders and financial institutions.
4. Guide You Through the Process
One thing for sure, you have to read the fine print and pay attention to every detail when taking out a mortgage loan– and there are a lot of details. The mortgage broker can help you by making sure that all the details are observed and this makes the difference between a loan being declined and one approved. The very best mortgage broker will walk you through all steps of the process until the process is completed.
5. No Cost
One of the greatest things about this specialized service is that often there is no charge. The mortgage brokers in Atlanta, like all mortgage brokers are given commissions by the lenders that they work with. You will have to pay a fee if you choose to use a private lender. But, in any case the mortgage broker you work with will inform you of the fees they will charge in advance.
6. Protect Your Credit Score
If you apply for a long list of brokers by yourself, you will take a very long time to do so and also reduce your credit score. This is because a hard check is made every time a loan is taken out. When many of these are done in a short period of time, the credit score is limited. But, if you use a mortgage broker, you will not suffer this risk as they will know which is the right loan for you in one shot – thus, preserving your credit score.
7. Save Time
If you are buying a house, you would much rather spend your time shopping for the property of your choosing. A mortgage broker will be able to handle all the work of shopping for a mortgage. After all, they have the list of lenders they know well and can narrow down the options quickly. So, convenience and efficiency could be two more benefits from using a mortgage broker in Atlanta.
In the end, the advantages of using a mortgage broker to find financing for the home of your dreams has many advantages. The next time you are in the market for a broker, do not hesitate to contact a mortgage broker in Atlanta who can offer you long term benefits in selecting the mortgage of your dreams.
If you are looking for the right Atlanta mortgage broker, you have to ensure that you choose the right one. Mortgage brokers, as with any other professionals are expected to meet certain standards and it is important to ensure that the broker you choose meets or surpasses these standards (licensing and so on). However, there are many other things to look for in a broker.
Having said that, here are the best tips for choosing a mortgage broker:
Ask for Atlanta Mortgage Broker Referrals
If you know of a family member, friend, neighbor, colleague, or real estate agent who knows of a good mortgage professional, ask them for a referral. Asking for referrals is among the best ways to find the right mortgage broker as you will most likely have an unbiased opinion.
Find Out Whether or Not the Broker Can Help You Save Money
Atlanta mortgage brokers, like all mortgage brokers are paid through commissions on loans. A broker’s value is that they need to help their clients get a more affordable financing solution that the clients wouldn’t be able to find on their own. If the mortgage broker you are considering can help you save money, then the commission fee should not be a hindrance. It needs to be equal to or less than the amount you will save by hiring them.
Find Out Who Is On the Mortgage Broker’s Lending Panel
A broker’s lending panel can tell you a lot about a mortgage broker, particularly about their work and experience. Check whether the broker you want to hire has many institutions with a solid reputation under their belt. If not, look for another mortgage broker as you could end up missing out on better home loan deals. Find out from the mortgage broker how many lenders they have, how and why they use them.
Ensure that the product that is being offered suits your needs. Ask the broker why they are offering a particular lender and what the lender is offering. However, you should remember that a bigger lending panel doesn’t mean that a broker offers a better service. It’s all about what suits your needs. Ask your Atlanta mortgage broker to explain the documentation or paperwork associated with your loan application to know everything about the loan.
Dealing with financial problems can be infuriating and complex, particularly for those who have never been through the process of applying for a loan. That is why you need a broker who can communicate financial concepts and sophisticated mathematical calculations in an effective way. You also need a broker who practices patience when their clients have questions. Look for a mortgage broker who can communicate clearly and quickly when their clients need them.
While we don’t have a crystal ball, we believe that most of the people who hire mortgage brokers are possible repeat home buyers. First time home buyers are particularly important to brokers as they are essential to those who have never applied for a mortgage before. That is because first-time homebuyers often become move-up buyers or refinancers.
If this is your first time applying for a mortgage through a broker, it is likely that you will need their services in the future. However, this depends on your experience with the mortgage broker. Does the broker demonstrate the traits mentioned in this article? Do they offer a wide range of products and affordable loan products? How long have they been in the industry? Do you think you will hire the broker again in the future?
This may sound silly, but working with a mortgage broker needs to be a long-term relationship. If you would like to buy a bigger house, buy a holiday home, or when you need refinancing to a lower rate, talk to someone who understands your needs and financial situation.
Atlanta Mortgage Broker DiscussesWhy and How the Length of Mortgage Can Cost Can Cost the Borrower Money
Why and How the Length of Mortgage Can Cost Can Cost the Borrower Money. Real estate financing is one of the most imposing limitations of homeownership in many parts all over the world. Mortgage affordability determines not only the ease of acquiring a loan but also the cost of holding the loan up to the loan’s maturity date when the borrower is expected to have repaid 100% of the loan funds borrowed. This article demonstrates that the length of the mortgage can cost the borrower more or less depending on the nature of the cost.
Many borrowers understand that long repayment duration will expose them to an extended duration of fluctuating interest rates for those mortgages issued on floating interest costs. Unpredictable interest rates affect a borrower’s capability to repay a mortgage in that if interest rates on an outstanding mortgage rise, the cost holding of the mortgage also goes up. The ideal scenario for a mortgage holder is to be able to retire a loan at the least cost possible.
Interest on loans is a measure of the credit risk for a mortgage holder. For this reason, risky borrowing is supported by high-interest rates on the loans; the more the risk to lend in a borrower, the higher the interest rate on the loan. It is on this premise that the borrower’s credit rating/ credit score becomes of great importance to the lender and a poor credit score will make a mortgage loan more expensive to the holder in the long run. We discuss Your Credit Score and Your Mortgage in more detail on that post.
So, what are the common costs that a borrower will have to pay between the mortgage origination date and the mortgage maturity date? The naming of the various loan fees and loan charges may differ from one lender to another but the borrower needs to understand the rationale behind the charge/fee on the mortgage. They may include:
Loan Arrangement Fee
This is an administrative cost charged by a lender to the borrower because the lender has arranged for the loan and is often non-refundable. Lenders have to reserve large amounts of cash to be able to set up a credit facility capable of issuing both fixed-rate and variable-rate mortgages. Noteworthy, not all lenders charge a loan arrangement fee.
Depending on the perceived risk of the mortgage holder, lenders typically charge a loan arrangement fee of between 0 -3 percent of the loan amount.
This cost may be charged at the onset – at the loan application process when the borrower is submitting documents for loan consideration and origination or may be charged periodically as part of the annual interest cost. In the latter situation, the borrower will pay more in interest cost. It is paramount the loan arrangement fee is fully disclosed before the borrower commits to a loan contract.
Loan Booking Fee
Many lenders combine loan booking fees with loan arrangement fees and charge them together as a single cost. Similarly to the loan arrangement fee, the loan booking fee is often paid for when the borrower makes an application for a mortgage loan, is non-refundable, and is determined by the size of the mortgage loan.
Property Valuation Fees
This is a fee paid to a property valuer/appraiser whose professional role is to ascertain the value of the property and help determine how much of a mortgage loan the property can secure for the borrower. The amount of mortgage funds given by the lender will be proportional to the value of the property as returned by the appraiser.
The lender does not want to advance more money to the borrower beyond the value of the property used as mortgage collateral. The valuation cost to be paid to the property valuer is often dependent on the value of the property.
These are the costs paid to the government entity/solicitor that registers the lender’s charge or the lender’s interest in the ownership and control of the property. When registering a property charge, the lender wants to have legal control of the sale and management of the property after the mortgage loan has been advanced to the borrower. The cost of registering this interest is borne by the borrower and is part of overall mortgage costs.
Mortgage Account Fees
To access a mortgage loan, the borrower must open an account with a mortgage lender. The mortgage account must be periodically updated and maintained for secure and accurate data recording. The cost of setting up, maintaining, and closing a mortgage account also adds to the overall mortgage cost. This fee to close a mortgage account applies even in the event of early loan repayment by the mortgage holder.
Loan Non-Performance Penalties
In most cases, there are charges to be made in form of penalties when a borrower falls late for loan repayment obligations. These fees are may vary between lenders but must be disclosed to the borrower early enough before signing the loan contract.
Mortgage Brokerage Fee
A Atlanta mortgage broker brings a potential borrower and the mortgage lender together for the mortgage business to take place. A mortgage broker is a critical source of professional advice to the borrower. Mortgage brokerage fees are due when the borrower opts to hire a mortgage broker to guide the borrower to get mortgage financing at a favorable rate.
Higher Credit Charges
Not all mortgage providers charge this cost. Additionally, this cost is mostly charged on borrowers with little mortgage down payment. A higher down payment (proportionate to the mortgage loan amount) will reduce the overall credit risk of the borrower. In the opposite scenario, when the mortgage down payment is low, the lender might charge extra to compensate for the extra risk.
The fee to Arrange Property Insurance Covers
The lender will seek to hold an insured property as a security for the mortgage loan. A property with an assurance cover ensures the lender is paid in the event the property is affected by the hazard against which the property has been insured.
A fire insurance cover will have the lender repaid if the building is razed down by fire before the loan has been retired. The cost of organizing for property insurance is a cost borne by the mortgage borrower. This fee will vary between lenders and between insurance companies.
This fee is not common among all mortgage providers and the borrower is advised to analyse this cost on case-to-case analysis of available mortgage providers.
This fee is a form of a recompense made to a lender because the borrower has repaid the loan earlier than planned. Naturally, the pre-payment of a loan has the undesired and invariable effect of forcing the lender to make adjustments for the anticipated loan payments. This fee may range between 1-5% of the value of the early repayment.
Mortgage Closure Fee
This fee is dependent on the occurrence of the mortgage account fee as discussed above. If the borrower has already paid for the mortgage account fee, it is highly unlikely they will need to pay for the mortgage exit/closure fees. This fee is paid to mark the closure of the mortgage account and will often vary between mortgage providers.
The length of the mortgage can cost the borrower more or less depending on the length of the loan repayment duration.
For the borrower to access affordable mortgage financing, they should be alive to the nature and extent of mortgage costs that fall with the subsistence of the mortgage loans.
Atlanta Mortgage Broker shares 7 Ways to Increase Your Mortgage Down Payment
Mortgages are essential, especially for first-time homebuyers. Among many reasons, the resulting leverage means profit on your investment whenever your home appreciates. Mortgages also ensure homeowners’ financial stability, since they don’t have to use all their life savings to buy a home or as a down payment. Most lenders and banks require a 20% down payment of the home’s purchase price. While some Atlanta Mortgage Brokers advise homebuyers to finance most of their home purchase through a mortgage loan, it often pays to make the largest down payment possible.
So, what are some of the ways that can help increase your mortgage down payment? Are there benefits that come with it? Read on to find out.
7 Ways of Increasing Your Mortgage Down Payment
1.) Down Payment Assistance Programs
Some institutions such as banks, government agencies, foundations, and non-profits have down payment assistance programs that may help you increase your mortgage down payment. Such assistance comes in the form of zero-interest loans or grants. The Federal Housing Administration (FHA) offers loans to eligible persons through FHA-approved lenders or banks. Such programs can help supplement your saving and result in a larger down payment for your mortgage.
2.) First-Time Home Buyer Incentives
First-time homebuyers can hone in on Housing and Urban Development (HUD) grants to boost their down payment. While such grants may not be available directly to individuals, they can be accessed through financial organizations with IRS tax-exempt privilege.
3.) Retirement Plans and Account Withdrawals
Borrowing from 401(k) plans is another common way of funding a larger down payment. While most people will eschew this option, it could be a smart undertaking for various reasons. For 401(k) plans that allow early withdrawal, first-time homebuyers can withdraw without incurring a tax penalty. Most people don’t mind the interest that comes with these withdraws as you end up paying the principal and interest to yourself. However, losing or leaving your job would mean that you repay the entire amount or roll the amount into an eligible retirement account. However, if you have a promising and secure job, this would be a safe and viable option.
4.) Down Payment Gifts From Family
Some home buyers would not warm up to this option, but it could help fund your mortgage down payment. The IRS allows individuals to give and receive thousands of dollars in gifts every year tax-free. However, the IRS sets limits on the amount that one can send or receive without paying tax. In 2020, one can be gifted up to $15,000 without paying tax on it.
5.) Asset Sale
Individuals preparing to buy a new home may turn some of their assets and items into cash to top up their savings for a larger down payment. Such assets include unused pieces of furniture or an old car.
6.) Find a Part-Time Job
Part-time jobs are great for supplementing income, which could help increase your mortgage down payment when purchasing a home.
Crowdfunding sites like HomeFundIt.com and FeatherTheNest.com allow individuals to create a profile and raise money for their down payment. While some of these platforms may charge credit card processing and transaction fees, the amount raised could go a long in boosting your mortgage down payment.
Mortgages are the most common ways of financing a home purchase, and paying a huge down payment could have unseen benefits in the long-term. Some common ways of increasing your down payment include applying for assistance programs, HUD grants, securing a part-time job, selling assets, crowdfunding, and accepting gifts from friends and family. By paying a large mortgage down payment, you may enjoy lower interest rates and lower monthly payments.
When you want to purchase a home, in most cases, you will need to get a mortgage. Most people can qualify for a mortgage and they usually need a downpayment to buy the home too. When you are looking into this process, you will want to know the effect your credit score and your mortgage will have on your life. It’s important that you understand what you are looking at so that you are not surprised when you are looking into buying a house. An Atlanta Mortgage Broker can help source the best Atlanta Mortgage Rates.
Your Credit Score And Your Mortgage
When you go to apply for a mortgage, you will find that the lower your credit score is, the higher you will pay for your mortgage. That is because the higher your credit score, the better risk you are to a lender. It will make a difference in your interest rate also. Here is an example so that you can see why it makes sense to have a higher credit score when you are looking to purchase a home: If you have a credit score of 750, you will be able to get a 30-year mortgage for $200,000 at an interest rate of 3.625%. That is really good but if your credit score was lower, you will pay a lot more in interest over the course of your loan.
What Credit Score Do You Need To Get A Loan For A Home?
You can qualify for a loan for a home when you have a credit score in the 500s in most cases. Once again, you will pay a lot more in interest over the course of your loan. This is where taking the advice of Atlanta Mortgage brokers will help. You definitely want to have a higher credit score before you apply for a mortgage so make sure that you keep your credit good and that you are keeping an eye on it. You can get a free copy of your credit report each year and it is a good idea to do so that you can check it for the correct information. If there are any discrepancies in it, you will want to look into so that you can get the proper information listed on your report. Your FICO score is so important when it comes to purchasing a home and it can affect the terms of your mortgage in a variety of ways.
Be sure that you can handle the responsibility of owning a home in Atlanta. Not only will you need to be able to afford it financially but you will also need to make sure that you are able to handle the responsibility of keeping up with the repairs that will go into it. When you know that you can afford to have a home, it can make a huge difference for you. Sit down and really look over all of your finances. You want to be in the best position possible when you purchase a home. Your credit score is a very important part of this. Look into it to make sure that you will get the best rates possible for your Atlanta mortgage.
Hiring a mortgage broker in Atlanta is the best way to relieve the stress involved in buying your dream home. If you are a first-time buyer, you may have hundreds of questions in your mind about the process of mortgage loans. A reliable broker can answer all your questions and help choose the most suitable mortgage depending on your income and personal requirements. A broker acts as a middleman between you and the lender and helps find a mortgage with a lower down payment and attractive interest rate. Here is what you need to consider when choosing a reliable mortgage broker in Atlanta.
What Is A Mortgage Broker?
A mortgage broker is a middleman between the lender and the borrower. He or she works for a lender and provides home financing to numerous borrowers in Atlanta. The broker has access to sources of home financing from multiple financial institutions compared to a bank loan officer who can only offer mortgage products available at his/her bank. While a bank loan officer is employed by the bank and is limited to promoting the products of the bank, a broker works with multiple lenders without any limitations.
Federal law requires the mortgage broker to be licensed, and they cannot have their salaries linked to the interest rate the borrower receives from a potential lender. The broker can save you a lot of time and energy in locating the best possible home loan conditions in Atlanta. The broker will do the math and let you know the loan amount you qualify for depending on your income and credit history. A good broker can help you find the right mortgage for your unique needs.
Mortgage brokers in Atlanta are paid in two main ways. In fact, broker fees have become more transparent after the Great Recession in 2008. The broker is either paid upfront by the borrower at the closing or by the lender after the transaction is closed. The broker fee is a percentage of the loan amount – usually around 1-2%.
Why Should You Work With A Mortgage Broker When Buying A Home In Atlanta?
A borrower working with a reliable mortgage broker receives many benefits. The client receives a more in-person interaction with the professional and could let the broker do the legwork for him/her. The mortgage broker will do the work of shopping around for the best interest rate for your home loan. It’s also important to shop for the lowest possible closing costs when finding the best mortgage to buy your dream home. A reliable broker will take care of the entire process and get you the best possible terms when applying for a home loan in Atlanta.
Many mortgage brokers have access to powerful home loan pricing systems. That way he or she will help you price the loan across many lenders at the same time. You will save a lot of time in finding the most suitable loan due to the technological advances in the industry. In fact, the time, energy, and money saved in the process are immense benefits to the borrower.
What Should You Ask The Potential Broker?
Finding a reliable broker isn’t easy with hundreds of mortgage brokers operating in Atlanta. Asking the right questions is the best way to select the right professional for your project. Here are some of the most important questions to ask the potential broker before you choose him/her:
How long have you been in business? The right broker should be in the industry for at least 3-5 years. Ask the broker if he or she has experience in specific loan types that you might be interested in – such as FHA or VA loans. The broker should hold a license to operate in your state. You can check if the broker is licensed in your state through the Nationwide Mortgage Licensing System and Registry.
Can you give me references? Ask the potential broker for 2-3 names and contact details of customers who have closed loans with the broker recently. Don’t forget to call and ask these customers what their experience was like. Ask if they are prepared to do business with the broker once again.
Finding the right mortgage broker requires diligent homework on your part. You may ask for referrals from your friends, family, or your realtor. The internet is a great source to start your search. Many buyers make the mistake of going with the first name they come across a search on Google. You should check the background of each broker on Google SERPs before choosing the best candidate for the project. Don’t forget to check the license of the professional and ask the right questions before choosing him/her as your mortgage broker. The aforementioned article provides information on why you should work with the best mortgage broker in Atlanta when buying your dream home.
Working with a competent Atlanta mortgage broker can save you a tremendous amount of time when buying your dream home. Just imagine the amount of stress you may experience if you had to track down and compare hundreds of loan products to find the right home loan to suit your requirements! Not only time, in some cases the savings could add up to thousands of dollars. In fact, a mortgage broker in Atlanta can help you buy your dream home by finding a home loan with a low down payment and a lower interest rate. Here is why you need to work with a competent Atlanta mortgage broker when buying your dream home.
A mortgage broker is a middleman between the borrower and the lender. He or she has access to home loan products from multiple financial institutions and banks compared to a bank loan officer who only has access to mortgage products available at his/her own bank. The right broker should have a valid license from the licensing authority of the state. The federal licensing requirements state that the broker’s salary is never linked to the interest rate offered by the lender. In fact, working with a broker will not impact how much your loan would be. The broker can locate the best possible loan terms and conditions for the client. The professional will do the math and let the borrower know the loan amount he or she qualifies for. The broker will work with the client to find a loan program that fits his/her interest rate and needs. Don’t forget to do your homework when finding the best mortgage broker in Atlanta.
The most effective way a broker can save you money is by getting you a lower interest rate. Even a small difference in interest rates can equate to thousands of dollars in interest payments over time. The broker has direct links to key individuals within lending institutions in Atlanta. That way he or she will be able to negotiate with the lender in ways that you may not be able to do. It could mean anything from zero fees to discounted interest rates for your mortgage. Even though a borrower may think that he or she can negotiate a good deal with the lender, the broker can generally do it better.
A competent broker can leverage inside knowledge to get you the best possible mortgage loan. A professional and experienced broker has inside knowledge about quotas and the motivations of bankers. In fact, he or she can leverage this knowledge to your advantage. The most important thing is to know which lender to use at which time. Make sure you rely on a competent mortgage broker in Atlanta when buying your dream home.
Questions To Ask An Atlanta Mortgage Broker
It’s important that you ask the right questions from the potential mortgage broker before committing to any loan. From the right type of home loan for you to the unanticipated fees, the financial health of the next decade of your life can depend on the answers you get from the potential broker. Continue shopping for a competent mortgage broker until you find the right one in Atlanta. You should also remember that the more the potential broker knows about you, the better advice they can give you. You should share your personal information with the potential broker to get the best possible deal from him/her. Here are some questions to ask the potential broker before you choose the best Atlanta mortgage broker:
. Which type of loan is best for me? . What are the interest rate and annual percentage rate of the loan? . What is the down payment? . What are the origination fees and discount points? . What are the costs involved in the mortgage? . Is it possible to get a loan rate lock? . Is there a payment penalty? . Can the lender approve loans in-house? . Do you guarantee on-time closings? . How much time do you need to fund?
How To Choose A Competent Mortgage Broker In Atlanta?
With hundreds of mortgage brokers operating in Atlanta, choosing a competent broker isn’t easy. Your extensive research plays a crucial part in choosing the right candidate for the job. If you have a friend or family member who has worked with a broker in the past, you may ask for referrals from them. Getting a referral from someone you trust is the best way to find a suitable broker in the area. If you are working with a realtor, you can ask him/her to recommend a good broker in the area. The internet is another good resource to find a reliable mortgage broker when buying your dream home in Atlanta. The broker should be licensed, experienced, reputable, and most of all, be your friend. You should be comfortable working with the individual. These are some of the most important things to consider when choosing a competent mortgage broker in Atlanta.
If you live in Atlanta and are looking to apply for a mortgage, there are many things you need to consider to ensure you get the best Atlanta mortgage rates. Mortgage rates are always shifting and can even change two or three times in one day. With that being said, it’s essential to understand what mortgage rates are, how they are determined, and where to look for the best deals.
What’s a Mortgage Rate?
The interest charged on a homeowner’s loan is what’s known as a mortgage rate. These rates are generally determined by lenders and are either variable (meaning they fluctuate following benchmark interest rates) or fixed (they remain constant throughout the mortgage). It is worth noting that they vary depending on how good the borrower’s credit profile is and fall and rise with interest rate cycles.
Mortgage rates are a primary consideration for people looking for money to finance a home’s purchase using a mortgage loan. Other aspects involved include taxes, interest, insurance, collateral, and principal. Mortgage collateral is the house itself, while the principal is the loan’s initial amount. Insurance and taxes vary according to the property’s location and usually are estimates until it is time to purchase the property.
Mortgage Rate Indicators
There are several indicators that people looking to buy a home can follow when considering a mortgage. And one such indicator is the prime rate. Prime rates represent the lowest average rate lenders can offer as credit. Lenders such as banking institutions use these rates for interbank loaning and can also provide them to the highest credit quality borrowers.
The 10-year treasury bond yield is another indicator that borrowers use. This indicator is also used to show market trends. In most cases, when treasury bonds rise, mortgage rates rise too. While most homeowner’s loans are calculated based on a thirty-year timeframe, most loans are either refinanced for newer rates or fully paid off after ten years. This is why the ten-year treasury bond yield is considered one of the best standards to judge.
How Are Mortgage Rates Determined?
If you are like most people with a dream to own a home, chances are you looking to get the lowest rates available for a mortgage loan. However, like most people, you do not know how mortgage interest rates are determined. Understanding the different factors used to determine your homeowner’s loan interest rate can help you have an easier time negotiating your mortgage during the homebuying process. To make things easier for you, we will discuss critical factors that affect mortgage interest rates and how you can work around them to get the best interest rates.
• Credit Score
Your credit score plays a major role in determining the interest you will be required to pay on your mortgage. In most, if not all, cases, people with higher credit scores generally get offered lower interest rates than those with lower scores. Mortgage lenders consider credit scores to determine how reliable borrowers will be when paying back the loaned money. But why credit scores? Because they are calculated based on an individual’s credit report, which shows their credit history, including their credit cards, loans, and payment history. We Discuss more how your credit score affects your mortgage rate here
If you are thinking of getting a mortgage, start by checking your credit score – go through your credit reports to see if there are any errors. Errors in your credit report could lead to lower scores, something that could affect your ability to qualify for better Atlanta mortgage rates and terms.
• Loan Amount and Home Price
As a homebuyer, you could end up paying higher interest rates on a loan if you are not careful. While considering your options, please keep in mind that the loan amount you need to borrow for your mortgage is the price of the property plus closing costs – and that does not include your down payment for the property. Depending on your mortgage loan type or circumstances, your mortgage insurance and closing costs may also be included in the loan.
If you have already started checking out available properties in the market, you probably will have an idea of what the home you are hoping to buy costs. But if you are just starting, consider visiting local real estate websites to get an idea of what homes within your preferred neighborhood cost. Consider using an interest rates calculator or tool to see how different home prices and required down payments affect interest rates in a specific area.
• Down Payment
In most cases, the larger your down payment, the lower the interest rate will be. When you have a larger stake in the home, lenders have a lesser risk of dealing with and are more willing to charge a lower rate. If you can comfortably put 20% or more down as down payment, go right ahead – doing so will help you get a relatively lower rate.
However, if you can’t, most lenders will require that you get mortgage insurance, which protects them from loss if you are unable to pay the loan. It’s worth noting that mortgage insurance effectively increases the overall amount you pay per month.
When seeking a mortgage, consider the overall cost of the loan you get. When you put down a larger down payment, you effectively lower the amount you need to borrow. In most cases, the lower the amount borrowed, the lower the interest rate will be. Getting lower interest rates will save you more money over time. This is why it’s essential that you not only consider the interest rate but also how much you borrow – and a larger down payment can help lower the amount borrowed and the interest rate charged.
• Interest Rate Type
There are basically two types of interest rates: adjustable and fixed. Some adjustable rates have an initial fixed period that, after some time, goes up or down depending on the market. Fixed rates, on the other hand, remain constant. When it comes to adjustable-rate loans, it’s worth noting that the interest rate may initially be lower than that of a fixed-rate loan but might increase considerably later on, which is why you need to consider different Atlanta mortgage rates before making a decision.
• Type of Loan
It’s worth noting that mortgage loans in America are available in various, and rather broad categories such as VA, USDA, FHA, and conventional loans. It’s worth noting that each loan type has different eligibility requirements, and it is the lenders who decide which products they will offer. Comparing what different lenders have to offer will help you better understand all available options and should make it easier for you to pick something that suits you.
The Tradeoff Between Interest Rates and Points
When shopping for a mortgage, you will see that different lenders offer different mortgage rates with different points. Generally, lender credits and points allow you to make tradeoffs in how you’ll pay for your closing costs and mortgage.
Points, or discount points, basically lower your rate, but there is a catch – you have to pay an upfront fee. When you pay points, you give the lender more upfront, and in return, you receive a lower interest rate, which means you get to pay a lesser amount over time. Discount points are great for people who know they’ll keep the loan running for a long time.
Lender credits may lower closing costs but increase interest rates. With lender credits, your lender offsets your closing costs, and you pay a considerably higher interest rate. Even though you will pay less upfront, you end up paying more over time due to the interest rate.
You have three options to choose from when it comes to lender credits and points:
You can opt to get lender credits and use the money to cover a portion of the closing cost but pay higher interest rates over time.
You can opt to pay the upfront fee at closing and receive lower interest rates.
Or, you can decide that you do not want to receive lender credits or pay points at all.
As we conclude, it is worth keeping in mind that it is not just one of these factors, but a combination of them all, that determines what you will be charged as interest. By understanding the factors that affect mortgage rates in Atlanta, you should have an easier time shopping for a mortgage that offers you interest rates that suit your budget and situation. Finally, mortgage loans are some of the most complex and most expensive financial commitments anyone can ever assume – and it is alight to ask for help. If you find the process to be a bit complicated, consider reaching out to a real estate attorney or a trusted housing counselor and Atlanta Mortgage Broker for advice and guidance.
While some of these factors are out of your control, understanding how determined interest rates will ensure you stay informed when shopping for a mortgage. At the same time, you have a part to play as you seek to find the best mortgage rates in Atlanta. Here are a couple of things that we believe will help make the process easier for you.
Follow daily financial broadcasts
Frequent up-to-date Atlanta mortgage rates websites
Read up-to-date finance blogs and finance news websites
Use an online calculator
Compare the information you are reading to get the right information