Atlanta Home Buying Step By Step
What Do I do before Buying A Home
Here are some important steps you need to considered before buying a home:
- Aim for a home you can really afford, if you can afford the monthly payments, you know foreclosure is around the corner.
- Buy in a district with good schools, even if you don’t have children, the future buyers of your home may have children and having a house in a good school district may help sell fast and for more money.
- Get professional help, real estate agents don’t charge you to help buy your home, they get paid by the Seller’s Agent.
- Strengthen your credit score, the higher your credit score the lower your monthly payment. Buyers will high credit scores gets better interest rates and therefore get a lower monthly payment.
- Before House hunting get pre-approved. Most of professional real estate agents won’t show you any homes until you get qualified. Once you get approved, you will know how much you can afford.
- Save for down payment and closing costs. FHA minimal down-payment requirements is 3.5% of the loan amount, closing cost could be another 2 to 3%, make sure you have that amount plus some additional saving for rainy day.
- Do your home work before bidding. Have your real estate agent provide a current market analysis for the area you are buying your home this is called CMA (current market analysis)
- Hire a home inspector, an inspector will provide you a complete report of the condition of your house.
- Built a healthy savings, most lenders will want to see and additional four to six months of payments in your savings account.
- Don’t buy a house if you are not planning to stay in the house at least 4 plus years.
Home Search Factors
- Location – Location is one of the most important factors when buying real estate
- Price – be sure to buy a house withing your means, consider other costs such as: tax, home insurance, and home maintenance
- Size and Type – When buying a house, you need to consider your current and future needs, a house with one bathroom may be sufficient for you now, but if you are planning to get married and have children, this house may not be big enough.
- Condition – All resale homes will have some kind of defects, be sure to read and understand the Seller’s disclosures provided by Seller. If the current owner has not replaced the HVAC unit and your home is 10 plus years old, you know that at some point you will have to replace that unit, same thing with your roof, hot water heater and other appliances.
Why Work with An Agent
- An agent can guide you through the entire home buying process.
- Agents are local experts and are familiar with trends and customary fees.
- A real estate agent is an expert in negotiating real estate contracts.
- Agents are also familiar with current state laws and real estate regulations.
- Real Estate Agents will help you with referrals such as: home inspectors, contractors, local lenders, and home owners insurance agents.
Making an Offer to Purchase
- Real Estate Agents will help you complete a purchase agreement to submit to seller or seller representative.
- Will help you explain Seller’s Disclosures, what is included and what is not included on the sale of the house.
- Agents will review your needs and determine the necessary contingencies when submitting an offer to purchase real estate.
- Most contract have what is called Earnest Money, an agent will help you comply with the contract by depositing into an escrow account.
- In order for a contract to be valid, it has to have a closing date, agents will make sure your contract has a closing date.
When the Offer is Accepted
- Home inspections are scheduled by your agent or by the buyer
- An appraisal is order by Lender.
- Your mortgage application needs to be completed with all documents submitted to the Lender.
- Your closing attorney will request a title research and review to make sure the title is insurable.
- The buyer will be ordering a homeowners insurance policy
- Buyers shall be aware of the amount of money they need to bring to the closing table
- And finally buyers should show up at closing.
There are many inspections that you do when buying a home, below is a list of inspections we recommend all home buyer should do.
- Termite inspections
- Structure inspections including roof, plumbing, electrical, HVAC, appliances and others.
- Radon and mold inspections
- Municipal inspections to make sure the city of county doesn’t have any complaints or unpaid tickets.
- When buying a new home make sure the builder has received a certificate of occupancy prior to closing.
Home Warranty Programs
When buying a home, most sellers are willing to give you a one year home buyers warranty. This warranty protects you by covering costs such as repairs needed on the following items: Electrical, plumbing, HVAC, Appliances, water heater, swimming pool pump and other items. The cost of this programs is around 4 to 5 hundred dollars.
When you purchase anew home, you can request a 10 year home warranty, this is usually paid by buyer and it covers any structural items, most of the systems are covered but only for 3 years. The cost of this program depends on the cost of your home.
- Bring a legal identification, driver’s license or passport
- Your down-payment money shall have been transferred to the Attorney’s escrow account already.
- Bring copy of the home owners insurance policy
- Review closing documents and close on the loan
These are the steps necessary to purchase your home in the Atlanta area.
Search Homes for Sale in Atlanta
Small Business Owner, specializes in marketing homes for sale in the Atlanta Area by using the most up to date Internet Marketing Tools.
Real Estate Broker serving the Atlanta Metro Area, for over 12 years. If you are planning to buy or sell your home in Atlanta, call Telmo Bermeo at 770-309-6417