Frequently Asked Questions

• 1. What should I know before I buy a house?

  The first thing you should do before you consider purchasing a home is to meet with a licensed mortgage banker who will help you understand how much you can afford to buy. Some people think they must pay off all their debt before they can qualify for a mortgage, but this is not the case. After determining how much you may qualify for, it is the important to assess your needs such as the size of home you’d like to purchase, location, and condition of the property. Writing down the elements important to you will help your real estate agent to find your dream home.

• 2. What if I don’t have the best credit?

  Many of our previous clients were worried about not qualifying for a mortgage due to previous credit issues. If you fear that your credit is so bad that you won’t qualify for a mortgage you should still reach out to one of our licensed loan officers that can help put you on the right track to finally purchase a home you’ve always wanted. Many times our expert advice can not only help you qualify for a loan quicker, but possibly get you a more favorable interest rate too. This could save you thousands of dollars over the course of the loan.

• 3. How do I know if I can get a loan?

  The first step if you are thinking about buying a home is to contact Atlantic Bay Mortgage. We will help you evaluate how much loan you can qualify for. We gather information about your goals and fit the correct mortgage product to your needs. We will also give you an approval letter to use when shopping for a home. Then you’ll know exactly how much you can afford to spend, and it will speed up the process once you do find the home of your dreams.

• 4. What is the process for buying a home?

  The first step of the process is to contact Atlantic Bay and learn how much home you can purchase. With just a few brief questions we will be able to understand your home loan needs and find the perfect solution for you. Then we will help introduce you to a local real estate agent if you do not already have one. They will help you shop for your dream home. The greatest advantage is that the seller pays for the real estate agent’s commissions so it is better that you work with a professional. We will then walk you through the paperwork and verify all your information. Once you have found a home and all the paperwork is processed we will schedule your closing to sign the final paperwork. Once you close on your home, you’ll be finished and ready to move in!!!

• 5. Why should I buy, instead of rent?

  A home is one of the best financial investments you can make. When you rent, you write your monthly check and that money is gone forever with no return on your investment. 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. This may save you a lot each year, because the interest you pay is the majority of your monthly payment for most of the years of your mortgage. 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.

• 6. Am I eligible for the Homebuyers Advantage program if I have owned a home before?

  Yes, this program is for anyone looking to purchase a home regardless of if you have owned a home before.

• 7. How long does it take to get a mortgage?

  Within minutes of contacting one of our licensed mortgage bankers, you will know the mortgage amount for which you can qualify. We close loans 3x faster than our nearest competitor and can have you in your new home in fewer than 30 days assuming you’ve found the right home for you.

• 8. What if I don’t have a large down payment for a new home?

  You are not alone, this is a very common occurrence and we have plenty of home loans that do not require a large down payment. Some of our loans allow you to finance up to 100% of the purchase price and other loans even give you money to repair a home.

• 9. What documents will I need to provide?

  Typical documents needed during the loan process are the past 2 years’ W2s, bank statements, 401K statements, tax statements, copy of sales contract (if applicable), and copy of driver’s license. Other items may apply depending upon your specific situation.

• 10. In addition to the mortgage payment, what other costs do I need to consider?

  • In addition to your monthly mortgage payment you will have utility costs such as power and water. If your utilities have been covered in your rent, this may be new for you. It is important to consider these in your monthly budgeting as you begin to think about buying a home.

• 11. So what is included in my mortgage payment?

  Your monthly mortgage payment is made up of 4 parts:

  • A. Principal: the repayment of the amount you actually borrowed.
  • B. Interest: payment to the lender for the money you’ve borrowed.
  • C. Homeowners Insurance: a monthly amount to insure the property against loss from fire, smoke, theft, and other hazards required by most lenders.
  • D. Property Taxes: the annual city/county taxes assessed on your property, divided by the number of mortgage payments you make in a year.

  Most loans are for 30 years, although 15 year loans are available, too. During the life of the loan, you’ll pay far more in interest than you will in principal – sometimes two or three times more! Because of the way loans are structured, in the first years you’ll be paying mostly interest in your monthly payments. In the final years, you’ll be paying mostly principal.