10 Ways to Prepare for Homeownership
Tuesday, July 29th, 2008Atlanta Real Estate – Buying your first home – First time home buyers
It is a fantastic time to buy a home or condo in Atlanta — interest rates are low, prices are low and there is a fair amount of inventory on the market. The question is… are you prepared to make that next step?
To follow are 10 sure-fire ways to help you buy your first home:
1. Decide what you can afford. Generally, you can afford a home equal in value to between 2 – 3X your gross income.
2. Develop your home wish list. Then, prioritize the features on your list.
3. Select where you want to live. Compile a list of three or four neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, proximity to your work, and of course, safety.
4. Start saving. Do you have enough money saved to qualify for a mortgage and cover your down payment? Ideally, you should have 5 to 20 percent of the purchase price saved as a down payment. Also, don’t forget to factor in closing costs. Closing costs — including taxes, attorney’s fee, and transfer fees — average between 2 and 5 percent of the home price.
5. Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments
6. Determine your mortgage qualifications. How large of mortgage do you qualify for? Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you.
7. Get preapproved. Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.
8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you’ve saved to buy your fist home without paying a penalty for early withdrawal.
9. Calculate the costs of homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.
10. Contact a REALTOR®. Find an experienced REALTOR® who can help guide you through the process
FOR MORE INFORMATION ABOUT THE HOME BUYING PROCESS, CLICK HERE
If you have any questions about the Atlanta real estate market or need help determining what you can comfortably afford, please don’t hesitate to call me at 404.432.1844. I truly enjoy working with first-time home buyers and it would be a pleasure to help you find your new Atlanta home!
Kerry Lucasse
REALTOR, Keller Williams Realty
404.432.1844
KerryLucasse@KW.com
Looking for a GREAL DEAL on your next home or investment property? With low interest rates and a high inventory of home foreclosures, this is truly the perfect time to buy your next home and invest in your future.
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