How Do You Find Your Real Mortgage Rate in Atlanta?
If the latest mortgage rate headlines made you close the tab on your home search, you’re in good company. Here’s what those headlines leave out: the rate in the news is rarely the rate a buyer is offered.
The national average for a 30-year fixed mortgage has climbed almost a full percentage point in a year, according to Freddie Mac, and you have to go back to late 2023 to find a higher reading. We’re not going to pretend that doesn’t matter.
Source: Freddie Mac Primary Mortgage Market Survey. National averages, not a rate quote.
What we will tell you is that an average is only an average. Lenders don’t hand it out. They price each loan around the person applying, which means your number could come in higher or lower, and you have more influence over it than you might think.
What Goes Into the Rate a Lender Offers You
When a loan officer runs your numbers, four things carry most of the weight.
Where Your Agent Can Help Bring the Rate Down
This is the part we love talking about, because it’s where negotiation comes in. Once you’ve found a home, the contract itself can improve your financing.
Ask for a rate buydown
With a buydown, money paid at closing lowers your interest rate, either for the first year or two or for the life of the loan. That money doesn’t have to be yours. Sellers and builders can cover it as part of the deal, and in today’s Atlanta market it’s a reasonable thing to ask for.
Ask the seller to cover closing costs
Loan programs allow sellers to pay a portion of a buyer’s closing costs. The limit depends on the loan: 3% to 9% of the price on a conventional loan, based on your down payment, and up to 6% on FHA. Cash you keep at closing can go toward a larger down payment or paying down a balance, and either one can help your rate.
To put numbers on it, a quarter of a percentage point on a $350,000 loan works out to about $59 a month in principal and interest. Small changes in rate are worth negotiating for.
Wondering what you could ask a seller for on the homes you’re watching?
Ask Our TeamStart With a Pre-Approval, Not a Guess
A lender can give you two kinds of answers. A pre-qualification is a ballpark based on what you report. A pre-approval goes further: the lender reviews your documents, checks your credit and gives you a conditional commitment. Bankrate lays out the difference like this.
| Pre-Qualification | Pre-Approval | |
|---|---|---|
| Financial documentation | Self-reported information only | Lender verifies your information, including pay stubs, tax returns and account statements |
| Loan amount and mortgage rate | Estimated | Exact (pending rate lock) |
| Time required | Often available in minutes | Could take days |
| Credit check | Soft credit check | Hard credit check |
Source: Bankrate
We walked through the process step by step in What Is a Pre-Approval and Why It Matters. If this is your first time buying, start there.
Questions To Bring to Your Loan Officer
Before the call, ask which documents to have ready. Then keep this list handy.
- If I wait 3, 6 or 12 months, what changes for me, good and bad?
- What would my payment look like with different down payments?
- Is a buydown worth it for the number of years I expect to own this home?
- If rates go up or down before I close, what happens to my payment?
- How does building equity now compare with waiting, over the long run?
- What does owning do for my taxes? (Your tax advisor should weigh in here as well.)
- Am I eligible for Georgia Dream or other down payment assistance?
- When does it make sense to lock my rate?
Common Questions From Atlanta Buyers
Why is my mortgage rate different from the rate in the news?
The rate in the news is an average across many borrowers. Lenders price each loan individually, using your credit score, your debt-to-income ratio, the size of your down payment and the type and length of loan you choose. Depending on those details, your rate may be higher or lower than the average.
Is a pre-approval better than a pre-qualification?
For most buyers, yes. A pre-qualification is an estimate built on information you report yourself. A pre-approval means a lender has verified your income, assets and credit and issued a conditional commitment, so the loan amount and rate are far more reliable and sellers give the letter more weight.
What is a mortgage rate buydown?
A buydown is money paid at closing in exchange for a lower interest rate. A permanent buydown uses discount points to reduce the rate for the life of the loan. A temporary buydown, such as a 2-1, lowers the rate for the first year or two. The buyer, the seller or a builder can pay for it.
How do I get pre-approved for a mortgage in Atlanta?
Contact a lender, complete an application and provide recent pay stubs, W-2s or tax returns and bank statements. The lender verifies your information, checks your credit and issues a pre-approval letter stating how much you can borrow. Timing varies by lender, and it can take a few days.
The Short Version
Rates are high by recent standards, and the headlines aren’t wrong about that. They just can’t tell you what your rate is. Only a lender can, and it takes one conversation to find out.
Once you know your number, you can decide whether to buy now or wait, with real information instead of a guess. Whichever way you go, we’re glad to help you think it through.
Buying a Home in Atlanta
Let’s Find Your Real Number
Tell us what you’re hoping to do and we’ll help you map out the first steps, including connecting you with lenders our clients have trusted. The choice of lender is always yours.
- A clear first step toward pre-approval
- Ideas for negotiating a lower rate on the right home
- Straight answers about buying in Atlanta right now
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This article is for general information only and is not financial, lending, tax or legal advice. Raegan Thorp Real Estate Group is a real estate team, not a lender, and nothing here is a loan offer, rate quote or commitment to lend. Mortgage rates cited are national averages as reported for the dates shown and change daily. Your rate, loan terms and eligibility depend on your credit, income, down payment, property and lender. Payment examples show principal and interest only and are illustrations. Seller contribution limits and assistance programs vary by program and are subject to change, so confirm current guidelines with your lender. Raegan Thorp Real Estate Group is partnered with the Justin Landis Group and brokered by Bolst, Inc., a Certified B Corporation™ brokerage. (404) 482-2293.
