Most mortgage lenders offer you pre-approval status before officially approving your loan. Once you decide which type of mortgage is right for you, it’s time to reach out to one of our Atlanta mortgage brokers to get pre-approved as a Georgia first time home buyer.
How to Get Pre-Approved for a Mortgage
To get pre-approved for a mortgage, Georgia first time home buyers usually start by providing the lender with information about their income, debt, credit score, employment situation, and other financial details. They also let the lender know if they have any savings for a down payment. Then, the broker uses that information to determine how much money the buyer can afford to borrow.
Additional Pre-Approval Criteria
Depending on the type of mortgage you want, your broker may check to make sure that you meet other criteria as well. For instance, if you want a USDA mortgage, they may check to ensure that the property you are thinking about buying is in the right area. If you’re applying for a self-employment mortgage, they may ask for more details about your business or freelance career.
What Happens After Mortgage Pre-Approval
Once a broker gives you pre-approval, you have a sense of how much you can spend, and you can start shopping for a home. However, most pre-approval offers come with conditions. Generally, the condition is that you must verify the information you have provided, but there may be other conditions. In particular, the lender may reserve the right to change the terms of the offer.
Moving From Pre-Approval to Approval
When you’re ready to move from pre-approval to approval, you will need to verify the information you provided during the pre-approval process. For instance, if you said that your income was a certain amount, your mortgage broker will ask to see proof of your income.
Most lenders also ask for additional details at this time. They may want to see a few months of bank account statements to show how financially responsible you are.
Securing the Loan
To be on the safe side, you should move from pre-approval to approval as soon as possible. Before doing this, you need to talk with Atlanta mortgage brokers about the terms of the Georgia first time home buyer loan. Remember to take into account the term (length) of the loan. Most mortgages have 15-year or 30-year terms, but there are exceptions.
Then, look at the interest rate, and find out if it’s fixed or adjustable. Fixed rate means that the rate stays the same for the life of the loan. Adjustable means that the rate changes. If you choose an adjustable rate loan, you need to know when the rate is going to adjust and what factors determine the rate of adjustment. These elements are not locked in with a pre-approval.
After you work with one of the Atlanta mortgage brokers and get pre-approval status, the real fun starts — you get to choose a real estate agent and start looking for your new home. After that, you can put in an offer, complete the closing documents, and then you’re a homeowner! To learn more about the process, contact us today at BrightPath.