Mortgage FAQs for Georgia home buyers

A mortgage broker helps you compare financing options through lenders they work with and guides your application toward closing. Available programs and pricing depend on that lender network and your qualifications. A bank generally offers its own mortgage products.

Compare more than the advertised rate. Put the loan amount, term, points, lender fees, credits, mortgage insurance, and total payment side by side. Ask whether the quotes use the same lock period and assumptions. A lower rate can come with a higher upfront cost.

Start with a monthly payment you can comfortably maintain, then work backward to a price range. Include principal and interest, property taxes, homeowners insurance, mortgage insurance if required, and HOA dues. Keep a separate allowance for utilities, maintenance, and repairs.

Your approved maximum may be higher than the amount you want to spend. For example, a $3,200 housing budget with $650 reserved for taxes, insurance, and HOA leaves $2,550 for principal, interest, and any mortgage insurance. Use the actual property’s taxes and an insurance quote before making an offer.

No. Some conventional programs allow eligible buyers to put as little as 3% down, and FHA financing may allow 3.5% down. Eligible VA borrowers and qualifying USDA buyers may have a no-down-payment option. Each program has borrower and property requirements.

On a $300,000 purchase, 3% down is $9,000, 3.5% is $10,500, and 5% is $15,000. These figures are down payments only; closing costs and prepaid expenses are separate. Compare the payment and cash left after closing before deciding whether a larger down payment makes sense.

There is no single credit score that applies to every mortgage. The loan program, lender requirements, credit history, down payment, and overall application all matter. Meeting a minimum score does not guarantee approval or a particular rate.

The score in a consumer app may differ from the score used for mortgage lending. Review your credit reports early and flag errors. Before paying off accounts, opening credit, or moving balances, let’s discuss how the change could affect your qualification and available cash.

Prequalification often starts with a preliminary conversation or information you provide. Preapproval usually involves a more detailed review of your credit, income, assets, and debts. Lenders use these terms differently, so ask exactly what has been reviewed.

Get the financing conversation started before you shop. A preapproval can help establish a price range and show a seller you are prepared, but it is not final loan approval. The property, appraisal, updated documents, and underwriting conditions still need to be acceptable. Tell me if your finances change after the letter is issued.

Common requests include identification, recent pay stubs, W-2s, bank or investment statements, and information about current debts. Tax returns and additional records may be needed depending on your income, ownership of a business, rental properties, or the loan program.

Gift funds and large deposits may need supporting documentation, too. I’ll explain what is needed for your situation and how to provide it securely. Documents used for underwriting are separate from the initial Loan Estimate: supporting documents cannot be required as a condition of receiving that estimate after the required application information is provided.

Your down payment is the part of the purchase price you pay rather than finance. Closing costs can include lender charges and points, appraisal, attorney or settlement services, title costs, and government recording or transfer charges. Prepaid interest, insurance, and initial escrow deposits also affect the cash needed at closing.

Ask for a line-by-line estimate instead of relying on a flat percentage. Estimated cash to close accounts for your down payment and costs, then adjusts for earnest money already paid, allowable seller or lender credits, and other transaction items. Credits can reduce eligible costs, but program rules control how they may be used.

Your payment generally includes principal and interest. If you have an escrow account, the servicer also collects money for property taxes and homeowners insurance. Mortgage insurance or program charges may apply. HOA dues are often paid separately, but they still belong in your housing budget.

A fixed interest rate keeps the scheduled principal-and-interest payment steady; it does not freeze taxes or insurance. Those costs and your escrow payment can change. Our payment calculator is a starting estimate, and its displayed exclusions matter. We’ll include property-specific costs when building your personalized comparison.

Mortgage insurance protects the lender if you default; it does not replace homeowners insurance. Conventional loans commonly require private mortgage insurance, or PMI, with less than 20% down. FHA loans generally include upfront and annual mortgage insurance charges.

Conventional PMI may be removable when applicable requirements are met. FHA insurance follows different rules and may remain for the loan’s full term. VA loans do not require monthly mortgage insurance, although a funding fee may apply unless you qualify for an exemption. Compare total cost rather than choosing a program solely to avoid insurance.

The right fit depends on your eligibility, finances, property, and goals. Conventional financing offers a broad range of options. FHA may fit buyers who need more flexible credit requirements. VA serves eligible military borrowers, and USDA requires both an eligible location and qualifying household income.

Compare available programs using the same home price and realistic assumptions. Look at cash to close, total payment, insurance or program fees, and how long you expect to keep the loan. No program is automatically the cheapest for every buyer, and a home’s location alone does not establish USDA eligibility.

Yes. Self-employment does not automatically prevent mortgage approval. For standard programs, lenders review documented qualifying income and the stability of your business. Business revenue or the deposits you receive are not necessarily the same as income that can be used to qualify.

Depending on the file, you may need tax returns, business records, a profit-and-loss statement, or additional documentation. Some Non-QM programs offer alternative documentation, such as bank statements, but still have underwriting requirements. We’ll compare standard options first and review rates, fees, down payment, and loan features before considering an alternative.

Points are an upfront cost paid for a lower interest rate. One point equals 1% of the loan amount, but it does not buy a fixed amount of rate reduction. The value depends on the actual pricing available and how long you keep the loan.

A simple break-even estimate divides the added upfront cost by monthly payment savings. If points cost $3,000 and save $75 per month, the simple break-even is 40 months. Selling or refinancing sooner could prevent you from recovering that cost. This shortcut does not account for every difference in interest, principal balance, or the value of keeping your cash.

A seller may agree to pay eligible costs through a negotiated credit, subject to the loan program’s limits and the transaction details. The allowed amount depends on factors such as loan type, down payment, and occupancy. A seller credit generally cannot replace your required down payment.

If allowed, a credit may help pay for permanent discount points or a temporary buydown. Permanent points reduce the note rate; a temporary buydown subsidizes payments for a limited period, then payments rise to the full scheduled amount. Review the full payment and program qualification rules before choosing, and do not assume a future refinance will be available.

A rate quote is not necessarily locked. A rate lock generally protects the quoted rate and specified pricing for a defined period, subject to its terms and changes to your application. Ask for written confirmation of the rate, points or credits, expiration date, and any extension costs.

The lock period should fit your expected closing timeline. Rates can rise or fall, so waiting is a decision with uncertainty. A lower market rate after locking does not automatically change your loan; any float-down option depends on the lender’s agreement. Let’s compare available terms and choose based on your closing plan.

After you have a contract, the loan moves through document review, underwriting, appraisal when required, title work, insurance verification, and final closing preparation. The timeline depends on the contract, lender, property, and how quickly outstanding items are resolved.

Missing documents, unexplained deposits, appraisal issues, title problems, or changes in income and debts can delay approval. Check with me before financing a car, opening accounts, changing jobs, or moving substantial funds. For most purchase mortgages, you must receive the Closing Disclosure at least three business days before closing. Review the final payment and cash to close before signing.