Myth vs Fact: What Atlanta Buyers Really Need to Understand About the Mortgage Process
Buying a home is one of life’s biggest milestones — but let’s be honest, the mortgage process can feel like a maze. Between pre-approvals, closing costs, and loan programs, it’s easy to run into myths that confuse even seasoned buyers. Let’s separate fact from fiction so you can feel confident as you take your next step toward homeownership in Atlanta, Tucker, Decatur, or Stone Mountain.
Myth #1: “Closing costs are just small extra fees.”
Fact: Closing costs usually fall between 2–5% of your loan amount and cover essential services — things like lender fees, appraisal, title services, and escrow. Some are fixed fees, while others are percentage-based.
👉 Your lender must provide a Loan Estimate so you can review a detailed breakdown upfront.
Learn more about what goes into your mortgage at Home Loans in Tucker, GA.
Myth #2: “All mortgages are basically the same.”
Fact: There’s no one-size-fits-all mortgage. First-time buyers might find an FHA loan fits their budget, while veterans can explore VA loans, and buyers of higher-priced homes may need a Jumbo loan.
A knowledgeable Decatur mortgage lender will help compare each program based on your income, goals, and how long you plan to stay in the home.
Explore your options: FHA Loans | VA Loans | Jumbo Loans
Myth #3: “If I have less than 20% down, I can’t buy a home.”
Fact: You can. You’ll just likely pay private mortgage insurance (PMI) — a policy that protects the lender until you reach 20% equity. Once your home value and payments reach that point, you can request PMI removal.
Note: FHA loans often require mortgage insurance for the life of the loan unless refinanced.
More about removing PMI and refinancing: Refinance in Stone Mountain, GA
Myth #4: “Escrowing taxes isn’t worth it.”
Fact: Escrow accounts can make budgeting easier. Your lender collects a small amount each month to cover your property taxes and insurance, so you don’t face large lump-sum bills later.
While some buyers prefer to pay these bills directly, most Atlanta homeowners find escrow accounts convenient and predictable.
Myth #5: “You don’t need to get pre-approved until you find a house.”
Fact: Pre-approval should come first. It helps you understand your budget and shows sellers you’re a serious buyer. In a competitive Atlanta market, pre-approval can give your offer the edge it needs.
Start here: Get Pre-Approved in Tucker, GA
Myth #6: “You can’t use family help for a down payment.”
Fact: You can — and it’s common. Many loan programs allow gift funds from family members for your down payment. You’ll just need a simple gift letter confirming the money isn’t a loan.
Takeaway
Every successful home purchase starts with clarity. The more you understand your mortgage options, the smoother your journey will be. Whether you’re in Tucker, Decatur, or Stone Mountain, our team at Luminate Bank will walk you through every step with transparency and care.
Ready to start? Visit ArtWoodMortgage.com to connect with a local loan expert today.
People Also Ask
1. What are the first steps to buying a home in Atlanta?
Get pre-approved and review your budget with a trusted lender. Knowing your numbers first helps narrow your home search.
2. How long does mortgage pre-approval last?
Most pre-approvals are valid for 60–90 days, depending on your lender.
3. Can I buy a home in Georgia with no money down?
Yes, some programs — like VA or USDA loans — allow for zero down payment if you qualify.
4. When should I refinance my mortgage?
Consider refinancing when it helps you reach long-term financial goals, not just for small rate differences.
5. What documents will I need for a mortgage application?
Common items include pay stubs, W-2s, bank statements, and ID verification.
