Congratulations! You have decided to purchase a home. You’ll be joining the ranks of hundreds of families who realize that home ownership offers a number of benefits including building equity, saving for the future, and creating an environment for your family memories. When you own your own home, your hard-earned dollars contribute to your mortgage. The equity you earn is yours and over time, your home will increase in value.
Buying a home is one of the most important decisions you may ever make. Whether you are a first-time home buyer, investor or upgrading to your dream home, buying a home can be a stressful process. Let us help by guiding you through the process in an effort to make it as stress free as possible. Contact us today!
WHY HIRE A REALTOR?
Atlanta market is competitive and hiring a Realtor to help you find a home is a smart idea. Having a Realtor representing you as a Buyer’s agent will represent your best interest and present your offer and negotiate on your behalf. Since your Realtor will be an expert in the home buying process, he or she will make the process as hassle free as possible. Your Realtor will be able to know of some properties that will hit the market before you do. Your Realtor will communicate on your behalf, so you do not have to deal with the Seller directly. The home buying and Selling process can be an emotional process for some people and having a Realtor can provide a more objective perspective. Your Realtor will also provide you with a Comparative Market Analysis (CMA) that will help guide you when making an offer. Schedule a consultation with us today and receive a FREE Home Buyers guide.
FIRST TIME HOME BUYER
Many renters in the Atlanta market are thinking about buying a home of their own. Several factors that you should be considered when buying a home.
a) How long do you plan on living in the home? What happens if you purchase the home and you have to relocate or sell shortly afterwards? Will you be able to clover the costs associated with selling the home if the value has not yet appreciated enough to cover those cost.
b) Space. If my family expands will I still be able to live comfortably in this home? Is there room to grow in this home?
c) Do I have enough saved for a down payment? Ask your mortgage lender about first-time home buyer options. Also, you may do your own research and look for programs in your state. Some down payment assistance programs in Georgia are based on county or area you live in and there may be income restrictions. A VA loan guaranteed by the Department of Veterans Affairs doesn’t require a down payment. Federal Housing Administration (FHA) loans have a minimum down payment of 3.5%, and some conventional loan programs allow down payments as low as 3%. Your credit will be a determining factor in some of these programs that you may be eligible for. Your Realtor may also be able to recommend lenders who do certain down payment assistance loans.
d) Closing cost. Do I have money saved for closing cost? Find out from your lender your closing cost and figure out how will you pay for it. Do you have the money saved? Will you need some contribution form the Seller? Or, will it be worked into your loan?
e) Be Upfront. Let your agent and lender regarding any credit issues and concerns that may affect your ability to obtain final mortgage approval to close. Because one lender may not be able to work with you doesn’t mean there is not another lender who can help.
INVESTORS
Atlanta is one of the fastest growing cites in the United States and real estate prices are still relatively affordable in comparison to some other large cities. As a result, savvy investors continue to acquire real estate in Atlanta. Let us help you find the right real estate investment for you. Contact us today!
FINDING THE RIGHT HOME AT THE RIGHT PRICE IN METRO ATLANTA
Everyone wants to be a savvy buyer. However, some buyers make the mistake of offering so low that the Seller does not even respond to the offer or the Seller counters back with a full price offer because they feel the Buyer is either not serious or they are insulted by the buyers offer. In a Seller’s market, you must ask yourself as the Buyer, am I ok losing this home to someone else and does my offer reflect that? Remember in a Seller’s market when there are more buyers than properties available making a good and reasonable first offer is important as you may not get another chance to present another offer on your dream home. Your agent will also be able to provide you with a comparative market analysis (CMA) which will show the most recent homes sold in that neighborhood or nearby. This is a great tool to assist you when making your offer.
HOW MUCH CAN YOU AFFORD?
When you are buying a home, you will need to consider the following;
a) How much can you afford? Speak with a mortgage lender to get a clearer picture of how much you can afford and what your monthly payment would be at that price range.
b) Down payment. Where is the money coming from? Do you have your down payment already saved? Or, will you be getting it from say your parents or down payment assistance program? Your lender will need to know such information.
c) Loan types. There are several different loans available so your lender will be able to tell you which loan type you qualify for and the minimum down payment required. Most conventional loans require at least 10% down payment. However, down payment requirement will also depend on buyer’s credit worthiness and the property they desire to purchase. However, some Buyers may qualify for as little as 3% down depending conventional loan depending on the loan amount, Buyer’s credit worthiness and the property being purchased.
d) Closing costs. Do you also have money saved to pay for your closing cost, application fee, inspections and appraisal? Although your application fee and appraisal fee will be shown on your closing statement as closing costs you will have to pay these upfront during the loan process and then you will receive a credit at closing.
e) Monthly payments. Make sure you are comfortable with the monthly payment per your budget. Because ethe lender tells you that you qualify for a certain price does not mean you have to spend that amount if they monthly payment is more than you are comfortable with or more than you think you can afford.
f) Don’t be house poor. This expression simply means you shouldn’t spend more than you are comfortable with on monthly mortgage to the extend you have no breathing room to enjoy other things in life or money for your savings. It is always a great idea to consult your accountant or financial advisor if you have one in deciding what monthly payment is right for you.
g) Home Maintenance Costs. Taxes, homeowner’s insurance, improvements cost, maintenance repair and replacement cost, monthly or annual homeowner dues. In addition, if you are purchasing a condominium or townhome the community may sometimes need to do repairs or replacement, example replace roof, and if there is not enough money in reserves then the homeowner’s association may charge a special assessment to each unit to cover such costs.
AVOID COMMON BUYER ERRORS AND MYTHYS
Some buyers, however, caught up in the excitement of buying a new home tend to overlook some items. When you have a systematic plan before you shop, you’ll be sure to avoid these costly errors. Here are some tips on how to avoid some common Buyer errors;
a) Ask yourself, how long do you plan on living in the home?
b) Don’t go apply for new credit before you have closed on your home. Some buyers get excited and go furniture shopping or car shopping which reduces their credit score and increase their debt to income ratio then are saddened to learn they will no longer qualify for their mortgage and as a result cannot close. This can be a costly mistake.
c) Don’t forget that you will need to add taxes, insurance and monthly HOA dues if applicable to your monthly payment. Don’t just use an online mortgage calculator to determine your monthly payment, talk to a lender and get pre-approved.
d) Get pre-approved not pre-qualified.
e) Get a free copy of your credit report and see if you need to correct any errors before applying for a mortgage.
f) Figure out how much you can afford.
g) Get more than one quote.
h) Don’t go closing accounts that could lower your credit score. Talk to your lender first.
i) Don’t think every home price is negotiable. Each Seller is different and so is each negotiation. Some homes may be priced a little below market to generate multiple offers and will then most likely sell for higher than the asking price.
j) Don’t be making lowball offers in a Seller’s market. Trust your agent’s knowledge of the market and understand that your agent will work had to negotiate the best deal for you. Also understand that in a situation with a highly demanded property with multiple offers you may not get a second chance to present a better offer.
k) Don’t pass on a great home in the early stages of your home search because you feel you are missing out on something better.
l) Don’t chose not to see a home because you don’t like the online pictures. Understand that a home can be well photographed to look amazing and that doesn’t always look the same in person and the opposite is also true. A home listing could have horrible photographs because they we taken with poor lighting, bad angles and not by a professional but is great in person. If your agent has previewed the home for you and recommends you look at it, trust your agent knows why they recommend you see it.
m) Get a third-party home inspection even if you are buying a new home.
n) Don’t be looking at homes way above what you can afford thinking you can get it at your budgeted price.
I WANT IT BUT DO YOU NEED IT
Buying a home can be an emotional, time-consuming, and complex process. There are a few things that you can do to help make the process go as smooth as possible. Compile a must have list (your needs) and a would be nice to have list (Your wants). Share these with your agent. Stay focus on your must have list when viewing properties and keep an open mind as you may not find everything you want in a house.
Are you looking to buy a home in Atlanta, Alpharetta, Brookhaven, Buckhead, Chamblee, Decatur, Dunwoody, Milton, Roswell, Sandy Springs or Smyrna Georgia? Contact us today!
Relocating to Atlanta Metro area? Let us help you find the home that is right for you.