In-Town Atlanta Home Buying Q&A
What should I look for when I interview a real estate agent in Atlanta?
You want to find an agent who has deep local market knowledge and works full time in the industry. It is important to find someone who communicates in a way that makes you feel comfortable and has strong network connections with other agents. Your agent should ask about your ideal lifestyle, ideal home (more space, dedicated rooms or areas, etc), future vision and housing goals to ensure you click.
How do I prepare my finances before I start looking for a house?
You should maintain great credit and avoid making large purchases like new cars until after you buy your home. Mortgage brokers like to ask you to compile two months of pay stubs and bank statements along with two years of tax returns and W-2s or 1099s to get started. Speak with your preferred lender about what debt you should pay off before they pull your credit for a formal pre-approval. However, you can always call your preferred lender to start a conversation to get more details about all this. They could even offer to do a “soft-pull” of your credit which doesn’t affect your score or rating (more on that below in the next question).
Why is it important to compare different mortgage lenders?
Comparing lenders helps you understand the various advantages and benefits each one offers. A lower interest rate or a different term can save you thousands of dollars over the life of your loan. It’s important to remember that a lower interest rate doesn’t mean that you’ll automatically be getting the best deal! You always want to ask deeper questions. You can also discuss with each lender if they can perform a soft credit pull initially to protect your credit score.
Do I really need a 20% down payment to buy a home?
No! A 20% down payment is not required to purchase a home. The national average is actually between 9% and 10%, and some loans allow for down payments as low as 3%. Lenders have many strategies to help you use your capital in a way that fits your specific needs.
What additional costs should I plan for besides the mortgage?
You should consider several other expenses associated with moving such as closing costs, home inspection (paid before closing out of your pocket), appraisal (paid before closing), utility setups and deposits sometimes, and moving company fees. It is also wise to budget for potential renovation costs and new furniture for your space. Work with your agent and lender to establish a monthly payment for the mortgage, taxes, and insurance that feels comfortable for you. These are great topics to go over with your lender/mortgage broker.
How do I begin the process of finding the right home?
The first step is to discuss your wish list with your Realtor, including your must-haves and things you want to avoid. You should also identify the different neighborhoods where you might want to live. Make sure all decision makers are involved in the process whether they are joining in person or virtually. Ultimately, you’ll be searching by elimination vs inclusion.
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- Make a top 10 wants/needs list
- Put a specific “why” beside each answer
- Pull out the top 3 from the top 10
What should I do during a home tour to stay organized?
Keep a spreadsheet or a journal of the different houses you visit to help you remember details. Take plenty of pictures from in-home tours and notes to look back at later while you stay within your price range. Be sure to provide your agent with both positive and negative feedback so they can refine their search for you. ALL feedback is good feedback. And, never forget, “NO” is a fine answer! If you don’t like it, eliminate it.
Why do I need a home inspector for my purchase?
Highly recommended. A thorough home inspector ensures you do not end up with a property that has major system issues [HVAC, plumbing, electricity, or foundation issues]. The inspector provides a report documenting any problems which allows you to ask for repairs during negotiations. You can then strategize with your agent about how to address these issues or negotiate a price adjustment. You’re going to have a document from a 3rd party expert, the home inspector, to use for you and possibly to provide to document repairs for negotiations.
What is the purpose of the appraisal and final walkthrough?
The lender orders an appraisal to verify that the market value of the home supports the agreed upon purchase price. A few days before closing, you will perform a final walkthrough with your agent to ensure the home is in the same order as it was when the offer was made and to verify all agreed-upon repairs were completed (if there were any repairs made on your behalf).
What do I need to bring with me on closing day?
You must bring a form of identification [sometimes two forms] and any additional payments required to close the deal. You will sign the mortgage documents and the final paperwork during this meeting. Once the process is complete, you can arrange to get the keys and move into your new home.
