Atlanta Georgia Mortgages

Frequently Asked Questions

About Mortgages

Q: How much of a mortgage can I get?
A: As a general rule, you can estimate purchasing a home worth two to three times your annual income. Beyond just your income, your Atlanta Georgia mortgage broker will also consider your credit, savings, debts, your income to debt ratio, employment history, down payment and other pertinent information.

Q: What is included in my mortgage payment?
A: Generally it's easiest to remember P.I.T.I. - Principle, Interest, Taxes and Insurance.

Q: What is the difference between a fixed-rate loan and an adjustable-rate loan?
A: With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable (they adjust annually based on changes to your tax bill and insurance), payments on an ARM loan can change pretty dramatically. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by having the options thoroughly explained by your mortgage broker.

About Loan Officers and Mortgage Brokers

Q: What is a loan officer?
A: A loan officer works under the license of the bank or other lender. They generally offer just the loan options of the institution they work for.

Q: What is a mortgage broker?
A: A mortgage broker is licensed by the state and can offer loan options from a wide variety of banks and other lending institutions.

Q: Should I use a mortgage broker or loan officer?
A: There is no reason not to speak with both as you shop for your best loan options. Since mortgage brokers can offer loan options from multiple lenders, there is generally more loan options available than you would get from a individual bank or lender. Also, because mortgage brokers are offering lending institutions another way of selling their mortgages, lending institutions often offer mortgage brokers loan options with lower rates than what their own loan officers can offer. This means you can be looking at the same mortgage through a lender's loan officer and a mortgage broker using that same lender, and the mortgage broker's rate can often be lower.

Q: Am I a client or customer of my mortgage person and what is the difference?
A: You are a customer of your loan officer. You are a client of your real estate Buyer's Agent.

This is the reason it is so important to first find a mortgage person with a history of acting fairly with their customers, and also a reason to always speak with more than just one mortgage person of good reputation. There is high temptation in the industry to use the fog of many numbers to take advantage of a customer for greater compensation, rather than acting fairly and being content with a happy customer and more competitive compensation for services rendered.

Q: Why is it good to consider a mortgage person suggested by your Buyer's Agent?
A: There are two great reasons your Buyer's Agent wants you to have a solid mortgage person working for you.

  1. A real estate transaction is an extremely complicated event, and your Buyer's Agent will put a significant amount of time and effort into assuring your transaction closes on time and as problem free as possible. A solid mortgage person helps assure that the closing is clean, saving time and effort on both client and Buyer's Agent.
  2. A bad closing caused by the mortgage person not only disrupts and possibly delays a closing (causing high stress and more effort on the parts of both the client and Buyer's Agent), but that agent is also branded negatively because of "guilt by association".

If your Buyer's Agent suggests a mortgage person to you (or any professional related to the transaction, e.g. home inspector, A/C mechanic, etc.) and under performs you will likely not come back to that agent next time either. Anyone in business knows that you can only grow a business through happy customers, clients and their referrals.

The AtlantaPros Team holds our business partners to a high standard. If one ever took advantage of one of our clients they would never receive another customer through us again. If they make a mistake (as all humans do from time to time), they will make things as right as possible or never receive another customer from us again. Our client's interests comes first.

The AtlantaPros Team
Atlanta Real Estate Professionals
Atlanta Communities Real Estate Brokerage