Beginning Steps For

Home-Buyers

Enclosed within is a search engine to house hunt with no pressure and an Atlanta area school report card for your review. 

    How much can you afford? The first step to answering this question is finding out what you can pay on a monthly basis after you've made your down payment— typically 3, 5, 10, or 20 percent of the asking price of the house or condo. There are even programs that require no money down that are available for those who qualify. 

    Speak with a loan officer. The best way to learn what you can afford is to get pre-qualified for a loan. We can recommend several trustworthy mortgage brokers, or you can just walk into the office of a local lender. Pre-qualifying won't cost you anything but understand that the lender will try to earn your business when you're ready to apply for a loan. It’s a great time to be buying because interest rates are still very low. You'll walk away with a good idea of how your income, assets, and liabilities translate into what you can afford. Mortgage Interest Rates are Low!! 

    Do the math. You can also do a simple calculation on your own. Monthly payments should be 25 to 33 percent of your monthly gross income. To calculate: Take your monthly income before taxes, including all sources, and divide it by four. Subtract from this figure the total amount you pay per month in debts (loans, car payments, charge accounts, and the like). The result is the lower end of what you can reasonably afford to pay on a monthly basis. After deducting monthly homeowners insurance (say, $50 per month) and property tax payments (say, $100), you'll see approximately what you can afford for your monthly loan payment. 

     Translate the math. To find out how this translates in terms of house pricing, multiply your final total above by 12 (months), and then divide that by the average interest rate on loans today—say, 7 percent. The result is the approximate market you'll be focusing on.

     Additional costs. In addition to the purchase price you'll need extra cash for closing costs (including points and fees), inspection, and future expenses. All in all, to get through closing—meaning, once you've signed the last remaining paper after agreeing on price and terms with the seller—the cost will typically be 2 to 7 percent more than the sales price. If you calculate from the average, at 4.5 percent, a $150,000 house will cost $156,750 to purchase. Be sure to consider annual property taxes and repairs (both the predictable and unexpected).

Take heart in knowing that buyers are simply getting into the market and out of paying their landlord’s mortgage. Your dream house may be two or three houses into the future, so don't feel like you have to spend every penny you can afford.

    Start the house hunt. Now that you have an idea of what you can afford, you can focus on whether you're in the market for a condominium, or single-family detached home. We can educate you about what to look for and avoid, provide reliable references for other experts you'll need along the line—such as lenders and inspectors—and represent you in negotiations and at closing. It definitely pays to have me on your team through the home-buying transaction. Plus, the best part is our services are almost always 100% free to the Buyer. Start by using our state-of-the-art home search system. 

     Enjoy the search. Now you're ready for the fun stuff: pounding the pavement. We’ll find the details of what you want and do some legwork in advance. Then, we’ll see as many homes and open houses as you can stand. When we’re apart, just be sure to sign in under my name so that all parties understand that you have representation. In the case of new homes, remember that the Realtor on site represents the builder and not you. Call us anytime you see a home you’d like to visit and we’ll do our best to meet you immediately.

     Research. Talk to friends and family about their buying experiences. People are often surprisingly candid about what they've learned about financing, construction, and their ups and downs in the course of buying their first house. Check out School Reports here.

    Finally, if there are times when you just can't bear to see another overpriced house with hot pink walls and orange shag carpet, take a day off—and remind yourself that someday you'll own your very own home and it will be all worthwhile. Contact us today for your own customized web page search engine. Know about all Atlanta listings FIRST. We look forward to working with you!