Get answers to common mortgage questions and expert guidance on home financing
Basic information about mortgages and home financing
A mortgage is a loan used to purchase real estate. The property serves as collateral for the loan, meaning if you fail to make payments, the lender can take possession of the property. Mortgages typically have terms of 15-30 years and include both principal and interest payments.
Pre-qualification is an informal assessment based on information you provide. Pre-approval is a formal process where the lender verifies your financial information and provides a conditional commitment for a specific loan amount. Pre-approval is much stronger and shows sellers you're a serious buyer.
The typical mortgage process takes 30-45 days from application to closing. However, this can vary based on loan type, property type, and market conditions. FHA and VA loans may take longer due to additional requirements, while conventional loans can sometimes close faster.
Yes, but options are limited. FHA loans accept credit scores as low as 500 (with 10% down) or 580 (with 3.5% down). VA loans are more flexible with credit requirements. Conventional loans typically require 620+. Working with an experienced lender like Miles can help you find the best options for your situation.
Understanding different mortgage options and their requirements
The main types are:
FHA loans offer several advantages:
VA loans are available to:
You'll need a Certificate of Eligibility (COE) from the VA to apply.
USDA loans are government-backed loans for rural areas with these features:
Many areas in coastal Georgia qualify as rural under USDA guidelines.
Understanding what lenders look for when approving mortgages
Credit score requirements vary by loan type:
Higher credit scores generally result in better interest rates.
Down payment requirements vary by loan type:
Larger down payments can help you avoid private mortgage insurance (PMI).
Debt-to-income (DTI) ratio compares your monthly debt payments to your gross monthly income. Lenders typically want:
Lower DTI ratios generally result in better loan terms and approval chances.
You'll typically need:
Understanding the steps from application to closing
The typical mortgage process includes:
Pre-approval typically takes 1-3 business days once you provide all required documentation. The process involves:
Having all documents ready can speed up the process significantly.
The appraisal is a professional assessment of the property's value:
If the appraisal comes in lower than the purchase price, you may need to renegotiate or bring additional funds.
At closing, you'll:
Plan for 1-2 hours and bring a government-issued ID. You can review documents in advance to save time.
Understanding all the costs associated with getting a mortgage
Closing costs typically range from 2-5% of the loan amount and include:
PMI is insurance that protects the lender if you default on a conventional loan with less than 20% down payment:
Yes, in some cases you can roll closing costs into your mortgage, but there are considerations:
Discuss options with your lender to determine the best approach.
Beyond your mortgage payment, expect these ongoing costs:
Specific questions about mortgages in coastal Georgia and northern Florida
Yes, Georgia offers several programs for first-time homebuyers:
Miles can help you explore all available options.
Coastal areas often have flood zones. Important considerations:
Always verify flood zone status before purchasing coastal property.
Military installations significantly impact local housing markets:
Miles has extensive experience with VA loans and military families.
If the property sits in a FEMA Special Flood Hazard Area (a zone beginning with A or V) and you are using a federally backed mortgage, flood insurance is required by federal law. Much of coastal Glynn, Camden and Chatham County is mapped inside these zones, so it affects a large share of purchases here.
You can check any address for free on FEMA's Flood Map Service Center before you make an offer. Where flood insurance is required, the premium is included in your monthly escrow and counts toward the debt-to-income ratio you qualify on, so it is worth checking early rather than at closing.
Georgia charges an intangible recording tax of $1.50 per $500 of the loan amount, capped at $25,000. On a $300,000 loan that works out to $900.
It is a one-time tax collected at closing on the note, not on the purchase price, and it applies to long-term notes secured by Georgia real estate. Florida does not have an equivalent tax, which is one reason closing costs differ between the two states Mortgage By Miles serves.
Yes. VA loan eligibility is based on your service record, not on where you are stationed or where you buy, so it works the same at Naval Submarine Base Kings Bay, Fort Stewart, Hunter Army Airfield, NAS Jacksonville, Naval Station Mayport and Coast Guard Air Station Savannah.
For eligible borrowers a VA loan requires no down payment and carries no monthly mortgage insurance, which is usually the largest monthly difference against an FHA or conventional loan at the same price.
Yes. Basic Allowance for Housing can generally be counted as qualifying income on a VA loan, and because BAH is not taxed it often carries more weight than the same amount of taxable income.
You will normally need a current Leave and Earnings Statement showing the allowance. If you are close to a PCS, tell your loan officer early, because the BAH rate for your new duty station may be the figure that matters.
Yes. VA entitlement is not a one-time benefit. Once a VA loan is paid off and the property sold, full entitlement can generally be restored and used again.
It is also sometimes possible to hold two VA loans at the same time using remaining entitlement, which comes up regularly for service members who PCS and keep the previous home as a rental. Your Certificate of Eligibility shows how much entitlement you have available.
Yes. Veterans receiving VA compensation for a service-connected disability are exempt from the VA funding fee entirely. The exemption also applies to certain surviving spouses and to some Purple Heart recipients serving on active duty.
The exemption is confirmed from your Certificate of Eligibility. If your disability rating is granted after closing, the fee you already paid may be refundable, so it is worth raising even late in the process.
USDA eligibility is determined by the property's address against the USDA rural eligibility map, not by your income bracket alone or by the county name. Many areas outside the Brunswick and Savannah city centers fall inside eligible boundaries.
Because the maps are redrawn periodically, the only reliable answer is to check the specific address on the USDA eligibility map before writing an offer. Where a property does qualify, USDA allows no down payment and household income limits apply.
Contact Miles for personalized answers and expert mortgage guidance. No question is too small!
