Financing Information

First Things First!

When you have decided to buy a home, one of the key first steps is to arrange financing with a lender of your choice. The lender will collect basic financial information and "pre-qualify" you for a certain amount. Prequalification is critical as it sets a limit to how much home you can afford.

Key Financing Points:

  • Debit-to-income ratios vary based on the type of mortgage, down payment, etc., but typically cannot exceed 28% to 36% on the buyer's gross income (before taxes and other deductions)
  • Down payment requirements vary from a low of 0% for some VA loans, 3.5% for FHA to a high of 20% for conventional loans
  • Down payments of 20% or greater generally drive a better interest rate resulting in a lower overall monthly mortgage payment

Having the right loan officer working on your behalf is critical. Although you have the option to choose any lender, I work with several Atlanta based lenders who provide exceptional service before and after the closing. Having these relationships helps me to bring valued added service to my clients.

Mortgage Bankers

This type of lender is large enough to originate loans (underwriting and funding) and create pools of loans which they service themselves or sell directly to the secondary market such as Fannie Mae, Freddie Mac, or jumbo loan investors.

Mortgage Brokers

This type of lender originates loans and brokers them through established relationships with wholesale lending institutions. Underwriting and funding takes place with the wholesale lender.