Atlanta Home Buyers - Shopping for a Mortgage! There is more to buying a home in Atlanta that looking at pretty homes! When it comes to a home buyer shopping for a mortgage in Atlanta or anyplace across the country, most of them do not have a clue what they are actually looking for. Atlanta home buyers are not educated and tend to look at the wrong things. All too often Atlanta home buyers make the fatal mistake of searching for actually for the lowest monthly payment, but never really read what they are getting themselves into. That is why in Atlanta we lead the nation in loan fraud and foreclosures. The buyers need to look only at themselves for the mess they are in! There is always a lender that will take advantage of the uninformed. They saw you coming, and you can easily become a victim of predatory lending! It isn't the cheapest monthly rate that is important. It is about all the terms of the loan!
Getting the best mortgage is all about making the right choice. It is about getting loans that you can afford to pay until you pay off the home you've just purchased. It isn't about dreaming about the home, it is about doing the math and knowing you can afford the home you are purchasing...there's no free lunch! You can either afford it, or you can't! If you purchase a home with the wrong type of mortgage you will soon find yourself in very deep water! ****To avoid predatory lending you need to ask questions before signing any documents. Take your documents home to review before signing them and read them!****
- How long have you been originating loans?
- Do you have references of past clients?
- Do you work as a full time lender?
- How much down payment will I need?
- What will be the approximate closing costs of this loan?
- What is the interest rate of this loan? What is the APR of this loan?
- What discount points and origination fees are on the loan?
- What is the loan going to cost me in monthly payment? Principle Interest, Taxes and Insurance?
- What type of mortgage will this be? 30 years, 15 Years Fixed, Adjustable Rate, Interest Only...?
- How long is this payment fixed?
- If the loan increases what are the worse case scenarios of my monthly costs?
- Will there be private mortgage insurance on the loan? How much?
- With this loan product, is there a negative amortization?
- Is there a pre-payment penalty for this loan or administrative fees for early payment of principle?
- If there is a pre-payment penalty what are the costs and terms?
- Will you provide me with a written good faith estimate?
- Does the good faith estimate include taxes, insurance, escrows and company fees?
- When can I lock in the loan rate? How long is it good for?
- How much money will I have to have to start the loan process?
- What documents will I need to provide?
- What timeframe can we close this loan in?
- What fee will you be paid for originating the loan?
Will you be willing to put all of this in writing and sign and date it?
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Jim,
Home buyers ought to have the basic knowledge of the mortgage process and ask pertinent questions, like the ones you present here. That way they can make responsible decisions on the type of loan they'll get. Excellent point here is to avoid aiming at the lowest monthly payment. Instead the focus should be on the right loan product for the borrower.