If you’re a first-time home buyer considering a home in Atlanta, congratulations! Between a thriving economy, excellent job market and affordable home prices, you couldn’t have picked a better real estate market for your first house. Nevertheless, if you have never gone through the process of buying a home before, it can be a bit daunting at first — and many first-timers make a few mistakes along the way. To help steer you straight, here are a few common-sense real estate tips to help you be as prepared as possible:
Get Your Credit Under Control
The law allows you to order a free credit report from each of the major bureaus once a year. We highly recommend you this before ever approaching a lender for two reasons: 1) You can identify and correct any errors that might be lowering your score, and 2) You can see whether your debt is affecting your score negatively. Scores in the 700s will get you better interest rates; if your score is below 620, you’re less likely to get approved. Take the time and pay down some debt to improve your chances of getting a good loan.
Save a Down Payment
Conventional mortgages usually require 20 percent down. First-time home buyers often qualify for much lower down payments, and sometimes down payment assistance, to help them get into their first home. However, any amount lower than 20 percent down may cause your interest rates and fees to increase, and you may have to include private mortgage insurance (PMI) in your monthly payment, which doesn’t go toward your equity. The more money you put down, the lower you can get your monthly payments and the more likely you are to be approved.
Get Pre-Approved for a Loan
Sellers like buyers who have been pre-approved for a mortgage loan because it tells them you are both a serious buyer and a qualified one. Pre-approval also tells you how much home you can actually afford to buy. Take this step before you go house hunting, and it will make the entire process run more smoothly.
Hire an Atlanta Real Estate Agent with Plenty of Experience
Atlanta is a huge real estate market with hundreds of neighborhoods, and it is easy for a first-time buyer to become overwhelmed. An agent who has expertise in the local market will know the best neighborhoods within your budget and can help pinpoint your search, saving you countless hours of looking for the metaphorical needle in a haystack. A good agent can also help you negotiate the best price. When you decide to buy a home in Atlanta, don’t go it alone. Call Atlanta Fine Homes Sotheby’s International Realty for an appointment at 404.948.4812.