As a real estate consultant in Metro Atlanta, my job is to ensure that my clients are armed with as much information as possible in order to make an informed decision when purchasing a new home.  I want my first-time home buyers to be 100% comfortable with their decision today… and in the years to come.

The most important question for a new home buyer is usually “How much will this cost?”

 This may vary from state-to-state, but here is the breakdown for Georgia home buyers:

1)  Earnest Money………….Typically 1% of the purchase price

     ** Due when you submit your offer on a home

2)  HOME INSPECTION……………………………..$375 – $500

3)  HOME APPRAISAL………………………………….$300 – $375

4) LOAN APPLICATION FEE / CREDIT CHECK………………… Varies by Lender

5) TERMITE INSPECTION (optional, but recommended)……. $45 – $75

6) LOW-FLOW PLUMBING CERTIFICATE (Dekalb County)…. $75

***  TOTAL (ESTIMATED) COST FOR A $300,000 HOME –>  $3,800 ***

Once the home has been inspected, appraised and approved by the lender, there are costs AT CLOSING. 

CLOSING COSTS are really in two fee categories — Closing Costs and Prepaid Items

1) CLOSING COSTS include the loan origination fee (usually1% of the purchase price), title examination, title insurance, courier fees, transfer tax, intangibles tax and other miscellaneous fees. 

2) PREPAID FEES include costs to set up your escrow account with the lender and include homeowners insurance, property taxes, and homeowners association dues (if any).  Usually your new lender will want 2 – 6 months of reserves in the escrow account, just in case you do not pay your mortgage, they will still be able to insure the home and pay the property taxes.

Typically, the closing costs and prepaid items add up to 2 – 4% of the purchase price.  Using my $300,000 example above, the closing costs would be $6,000 to $12,000.  It just depends on how much you are financing, if you pay for discount points (to decrease your interest rate), etc.  For an accurate breakdown of your closing costs, ask your loan officer or mortgage broker for a “Good Faith Estimate.”

THE GOOD NEWS — When you negotiate your offer on the home, you can also ask that the seller pay a portion of the closing costs and pre-paid items.

If you have any questions about the home-buying process, please don’t hestitate to call me at 404.432.1844 or visit my website at http://www.ATLhomesearch.com

All the best,

Kerry Lucasse

Real Estate Consultant, Keller Williams Realty

KerryLucasse@KW.com

404.432.1844

Atlanta 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