First-Time Homebuyers
1. How much house can I afford with today’s rates?
Your affordability depends on your income, debts, and today’s rates. Most homebuyers qualify for a payment around 28–33% of their gross income. A Redmond Mortgage pre-approval gives you an exact number based on your unique situation.
2. Do I need perfect credit to get approved?
No. Many programs allow scores starting at 580, and there are flexible options for borrowers rebuilding credit. We’ll review your full financial picture—not just your score.
3. How much do I need for a down payment?
Depending on the loan type, you could qualify for 0% down (VA or USDA), 3% down (Conventional), or 3.5% down (FHA). Georgia and Alabama both offer down payment assistance programs for qualified buyers.
4. Can I use gift funds or help from a family member?
Yes. Most loan programs allow gifts from family to cover some or all of your down payment or closing costs—just be prepared to document the source.
5. What are closing costs, and can I roll them into the loan?
Closing costs usually range from 2–5% of the home price. You may be able to roll them into your loan or have the seller contribute toward them.
6. What’s the difference between pre-qualification and pre-approval?
Pre-qualification is an estimate. A pre-approval verifies your income, credit, and assets—making you a stronger buyer when you’re ready to make an offer.
7. Should I wait for rates to drop before I buy?
Not necessarily. Home prices in markets like Huntsville and Warner Robins continue to rise. You can refinance later if rates drop—but you can’t go back and buy at today’s prices.
VA Buyers and Military Families
8. Do I have to pay anything out of pocket with a VA loan?
VA loans offer 0% down and often allow sellers or lenders to cover closing costs—meaning many veterans purchase with little or no money out of pocket.
9. How do I get my Certificate of Eligibility (COE)?
We’ll retrieve your COE directly from the VA portal in minutes—no paperwork required on your end.
10. Do I have to pay PMI with a VA loan?
No. VA loans never require private mortgage insurance, saving you hundreds per month compared to FHA or Conventional loans.
11. What if I’ve already used my VA benefit before?
You can likely use it again. Depending on your situation, we can restore or partially use your remaining entitlement.
12. Can I buy a fixer-upper or new construction with a VA loan?
Yes. VA loans work for both, though renovation projects may require extra steps to meet VA property standards.
13. Why do some sellers avoid VA loans?
Mostly misinformation. VA loans close just as smoothly as other loans when handled by an experienced VA lender. Redmond Mortgage specializes in VA lending across Georgia and Alabama—and we even cover the VA appraisal cost for our veterans.
Move-Up or Repeat Buyers
14. Should I sell my current home before buying another one?
It depends on your financial comfort level. Selling first avoids juggling two mortgages, but bridge loans or home equity lines can help you buy before selling.
15. Can I keep my current home and rent it out?
Yes, if you qualify with both payments. In markets like Macon or Huntsville, rental demand is high—so keeping your current home can be a great wealth-building move.
16. Will I lose money selling if prices are flat?
Not necessarily. Even in balanced markets like Dublin or Guntersville, moving up may make sense if you’re improving your location, lowering maintenance, or locking in a better long-term home.
17. Can I use the equity in my current home for my next purchase?
Yes. Many move-up buyers use a cash-out refinance or HELOC to fund the down payment on their next home.
Investors and Second-Home Buyers
18. What’s the minimum down payment for an investment property?
Typically 15–25%, depending on the property and occupancy. Second homes often require only 10%.
19. Can I buy an investment property in an LLC name?
Yes, though most lenders require the loan to close in your personal name before transferring it into an LLC.
20. Will rental income count toward my qualifying income?
Yes. Lenders generally count 75% of verified rental income toward your qualifying ratios—great for investors in areas like Madison, AL or Perry, GA where rentals stay in high demand.
21. What kind of return on investment can I expect in today’s market?
Rental properties in Central Georgia and North Alabama often yield 6–8% cap rates, with strong tenant demand from military families, students, and professionals.
Universal Homebuyer Questions
22. What will my monthly payment actually be once taxes and insurance are included?
Your total payment (PITI) includes principal, interest, taxes, and insurance. We’ll show you an exact breakdown up front so there are no surprises.
23. How long does the home loan process take?
Most Redmond Mortgage loans close in 15–30 days once under contract, thanks to our streamlined digital process and local underwriting partners.
24. What documents do I need to get started?
You’ll typically need recent pay stubs, W-2s or tax returns, bank statements, and a photo ID. We’ll give you a clear checklist so it’s easy to gather what’s needed.
25. Are mortgage rates expected to go up or down soon?
Rates shift daily with inflation and Federal Reserve policy. The best move is to buy when you find the right home and refinance later if rates fall.
Why Buyers Across Georgia and Alabama Choose Redmond Mortgage
At Redmond Mortgage, we’re proud to serve North Alabama and Central Georgia with a blend of big-market loan options and small-town service. Our team specializes in VA, FHA, USDA, Conventional, DSCR, and first-time homebuyer programs, with local expertise that national lenders can’t match.
Whether you’re stationed at Redstone Arsenal, house-hunting near Lake Guntersville, or buying your first home in Warner Robins, you deserve a lender who puts service first.
Ready to get started?
Get Pre-Approved Now or call us at (256) 705-0985.