Address: 1185 Collier Rd NW, Suite #2216, Atlanta, GA 30318

FAQ

Frequently Asked Questions

Below is a sample set of questions that we typically field from clients.

How much can a person borrow?

Lenders assess a person our couple's income, debts, credit history, and property value to determine a max loan amount. A mortgage calculator can help estimate affordability by considering income, debt, and desired loan term, however it is always best to speak to one of our agents.

Which docs are needed to apply for a mortgage?

Common documents include proof of income (paystubs, W2s, tax returns), asset documentation (bank statements, investment accounts), identification documents, and a credit report authorization. Every person's situation is unique, and we can provide a detailed checklist of what's needed.

What are the different types of mortgages?

There are a few different categories of loans. Some loans can be fixed mortgages (meaning the interest rate remains stable throughout the term of the loan) or adjustable mortgages (ARMs), where the interest rate fluctuates periodically. Additionally, there are Conventional loans - these are not government backed and people with higher credit scores may benefit from one. Or you can utilize a government backed loan through the FHA, VA, or USDA, often with lower down payment requirements and a more flexible qualifying criteria.

I have credit issues. Can I still get a mortgage?

Nobody has perfect credit. While not everyone qualifies for mortgage financing, most people that do get approved do so while carrying other debt and/or have a past credit issue. Also, people with collections, bankruptcies, or foreclosures may be able to still get approved. With each different mortgage type comes different guidelines. While you may not be eligible for a Conventional loan with a recent bankruptcy or foreclosure, you may still be able to get approved for other types of financing. Give us a a call to discuss your loan options.

What is a debt-to-income ratio?

Your debt-to-income ratio (DTI) compares your gross monthly income with your monthly bills. To get this ratio, divide your monthly expenses by your gross monthly income. This number turns into a percentage and becomes your debt-to-income ratio. Lenders typically want the number to be below 45%, but some programs allow it to be higher. We can let you know which bills can be excluded, determine your DTI, and review which loan programs you may qualify for.

What are the tax benefits of home ownership?

Each person's situation can be different, but generally there are tax benefits to home ownership, such as deductions for mortgage interest payments, real estate taxes, and mortgage points. Tax credits may also be available for low to moderate income homeowners. Consult with your CPA or tax planner on the exact specifics since each person or family's yearly tax filings can very depending on many factors.

What credit score do I need to be approved?

Lenders use your credit score to determine risk. Your credit score plays an important role in determining your interest rate and the type of loan you qualify for. While higher credit scores usually mean better rates, you may still qualify for a mortgage loan even if your score is less than perfect.

What is the difference between mortgage insurance and homeowners insurance?

Mortgage insurance (also referred to as PMI) is required if you have less than 20% equity in your home. PMI protects the lender from loss in the event a customer defaults on the mortgage. Homeowner's insurance covers the property owner from loss in the event their home is damaged by fire, weather, or other perils.

Contact Info

Address: 1185 Collier Rd NW, Suite #2216, Atlanta, GA 30318

NMLS #1271616

Residential One Lending, Inc.

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