10 Mistakes Borrowers Should Avoid When Applying for a Mortgage in Atlanta

Buying a home is one of the biggest investments you will ever make. What other point in life will you commit to a loan that can exceed well into the hundreds of thousands, and for some, into the millions?!? For most people, buying a home requires a mortgage to finance it. However, the mortgage application process can be complicated, and there are many mistakes that borrowers make that can cost them money, time, and even the ability to get a loan. In this blog post, we will discuss ten mistakes that borrowers should avoid when applying for a mortgage in Atlanta.

1. Not checking your credit report

Checking your credit report is essential when applying for a mortgage in Atlanta or any city across the United States. Your credit score plays a significant role in determining your creditworthiness and the interest rate you will be offered. Your credit score is calculated based on your credit history, payment history, and credit utilization. Before applying for a mortgage, it is crucial to check your credit report for errors and inaccuracies. Correcting these mistakes can improve your credit score and increase your chances of getting approved for a mortgage. Additionally, having a high credit score can help you secure a better interest rate, which can save you thousands of dollars over the life of the loan. It is also important to note that different lenders have different credit score requirements, so it’s best to get a copy of your credit report from all three major credit bureaus to get a clear picture of your creditworthiness. If you notice any errors or inaccuracies in your report, you can dispute them with the credit bureaus to have them removed. If you’re unaware of how to do this, getting with a good mortgage broker can really help alleviate some of these uncertainties. Lots of mortgage brokers have ways to help one improve their overall credit score. So, if you’re unsure, it’s always wise to consult with a trusted mortgage broker. Overall though, checking your credit report is a crucial step in the homebuying process and can save you time and money in the long run.

2. Not shopping around for rates

Not shopping around for interest rates can be a big mistake when applying for a mortgage in Atlanta. The interest rate on your mortgage can have a significant impact on your monthly payments and the total amount you will pay over the life of the loan. Even a small difference in interest rates can mean thousands of dollars in savings or additional costs over the life of the loan. Therefore, it is essential to shop around for the best rates and terms available to you. Do not feel like you have to be commited to one mortgage company or broker. Lots of people feel they need to use their friend or family member but different lenders have different rates, fees, and terms, so it is crucial to do your research and compare. You can start by getting quotes from multiple lenders and comparing their interest rates, closing costs, and other fees. You can also use online mortgage calculators to compare different loan scenarios and see how they affect your monthly payments and total costs. Keep in mind that shopping around for interest rates can take time and effort, but it can save you a significant amount of money in the long run. By doing your due diligence and comparing lenders, you can find the best mortgage that fits your needs and budget.

3. Not getting pre-approved

Getting pre-approved for a mortgage can give you a better idea of how much house you can afford and help you narrow down your search. It also shows sellers that you are a serious buyer and can give you an advantage in a competitive market. Getting pre-approved, or at minimum pre-qualified, will help set you up for success as you know your financial parameters and you won’t spend time looking at things that are outside of your budget.

Buying your first home can be daunting, especially if you’ve never been through the mortgage process. If you have any questions or concerns, feel free to call ATL Real Estate Services and we can help get you on the right path moving forward. 404-439-9984

4. Taking on new debt

One of the biggest mistakes borrowers make is taking on new debt before or during the mortgage application process. This can negatively affect your credit score and debt-to-income ratio, making it more challenging to get approved for a loan. Deals fall out because one takes on new debt lines. Don’t do it! You may not be able to close on your new home if you do.

5. Not having enough savings

Buying a home and applying for a mortgage in Atlanta comes with additional costs such as a down payment, closing costs, and moving expenses. It is essential to have enough savings to cover these costs and have a financial cushion for unexpected expenses. If applying for a mortgage in Atlanta seems daunting and you’re unsure of what’s best, contact ATL Real Estate Services to inquire what path makes most sense for your specific situation.

6. Not disclosing all financial information

Lenders need to have accurate and complete financial information to make a lending decision. It is essential to disclose all sources of income, debts, and assets, even if they do not seem significant.

7. Making large purchases before closing

Making significant purchases before closing, such as a car or furniture, can increase your debt-to-income ratio and affect your credit score. It is crucial to wait until after closing to make these purchases. If you don’t, you could lose out on that perfect home. Be patient and buy larger items after all the ink is dry at the closing attorney’s table.

8. Not understanding the terms of the loan

It is essential to understand the terms of the loan, including the interest rate, monthly payments, and any fees associated with the loan. Not understanding these terms can lead to unexpected costs and financial strain. Every broker should go through all of these numbers in depth with their client. Be sure to ask questions if you don’t understand what you’re reading.

9. Co-signing for someone else

Co-signing for someone else’s loan can affect your credit score and debt-to-income ratio, making it more challenging to get approved for a mortgage. It is best to avoid co-signing for someone else’s loan during the mortgage application process.

10. Changing jobs

Changing jobs during the mortgage application process can negatively affect your credit score and debt-to-income ratio. Lenders prefer borrowers who have consistent employment and income.

Applying for a mortgage in Atlanta can be a complicated and stressful process. Avoiding these ten mistakes can help you get approved for a loan and avoid unexpected costs and financial strain. Remember to do your research, disclose all financial information, and understand the terms of the loan. With these tips, you can make the mortgage application process smoother and less stressful. Ready to buy a house in Atlanta? Reach out to ATL Real Estate Services today to find out how we can help! 404-439-9984

Call ATL Real Estate Services today at 404-439-9984 if you're interested in selling your home in Atlanta. We will go through the entire process and what other homes are selling for that are comparable to yours so you know you're getting the best deal.
Call ATL Real Estate Services today at 404-439-9984 if you’re interested in selling your home in Atlanta. We will go through the entire process and what other homes are selling for that are comparable to yours so you know you’re getting the best deal.
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