Mortgage Q & A

House and Keys in Female Hands

1. Why buy, instead of rent?  Answer – A home is an investment. When you rent, you write your monthly check and that money is gone forever. But when you own your home, you can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes. You can also deduct the property taxes you pay as a homeowner. In addition, the value of your home may go up over the years. Finally, you’ll enjoy having something that’s all yours – a home where your own personal style will tell the world who you are.

2. How much money do I need to come up with to buy a house? Answer – This amount varies. It depends on the cost of the house you want to buy and the type of mortgage you get. Generally, there are three types of money that you will want to make sure you have available to purchase a home:

  • Earnest Money – This is the money you deposit on the home when you submit your offer to purchase. This money indicates to the seller that you are serious about buying the home.
  • Down Payment – This amount will vary depending on the loan program you are using. Conventional and FHA loans require as low as a 3% down payment, while VA and USDA loans have no down payment options.
  • Closing Costs – Closing costs cover lender fees and processing expenses. Your closing costs will depend on the the loan program and house you plan to buy. Your lender will provide an estimate of closing costs on your Good Faith Estimate (GFE). Along with estimated costs, your GFE will also specify the terms of the loan for which you applied.

3. What do I need to apply for a mortgage? Answer — To apply for a mortgage with Inlanta Mortgage, I recommend you first complete an online application. After your application is received, I will require the following information to verify employment, identity, debt, and assets. This list is not exhaustive and more information may be required.

  • Copies of Bank Statements
  • 401(k), Stocks, Bond, Mutual Fund Account Statements
  • 2 Months Recent Pay Stubs
  • W2′s and Income Tax Statements for 2 Years
  • Records of Outstanding Loans/Revolving Credit Card Accounts
  • Copies of Driver Licenses/Identification Cards (verified)
  • 12 Month Rental History (if new home buyer)

4. What type of mortgage loan can I get? Answer — This will depend on many factors. Most first-time home buyers opt for a 30-year fixed rate mortgage. Review my mortgage loan programs to see which program would be most appropriate for your unique financing needs.

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