If You Are a First-Time Home Buyer

If you are a first-time home buyer in the Atlanta - Marietta Georgia area, this is a great time and a great real estate market for you because:

1. You do not have another property to sell that you might lose money on.

2. Mortgage rates are extremely low right now, and

3. Price reductions have made many homes much more affordable than they have been in over 10 years.

However, buying a home is a fairly complex process that takes time, knowledge and the guidance of a professional. Here are some pointers to help you accomplish your goal of buying a home that meets your ants and needs at a good price.

1. Buy a Notebook and get organized. Use that notebook exclusively for planning your first home purchase. First, summarize in writing the type of home and type of neighborhood you would like to find. Is it a ranch, a bi-level or tri-level, a two-story home, a duplex where you can rent the other half, a condo ? Do you want a small lot to maintain, a no maintenance community or a large lot of land; in the city or the suburbs or in a rural area? Then, write down those things you REALLY NEED TO HAVE in the home for it to meet your needs for the next 7 - 10 years. Also list five or more things you’d REALLY LIKE TO HAVE.

Keep this list handy and use it as a guide to judge every home you look at whether it’s a model home, an open house or part of a tour a Realtor has arranged for you.

2. Understand how much home you can afford. Make a budget to pinpoint how much you are willing and able to pay for your new home. As a “rule of thumb.” Keeping your monthly cost to 25% to 35% of your gross monthly income is a good place to start.

3. If you haven't already worked with a Realtor, meet with more than mortgage lender. Collect all the information you can and then and compare their interest rates and closing costs. Learn how much down payment will be required of you and the maximum amount each would lender would loan you based upon your income and other already-existing obligations. Ask each lender for at least a pre-qualification statement. If and when you are reasonably sure which lender you would prefer to borrow from, get a pre-approval letter which you can attach to any offer you might make. Having a pre-approval letter already in place is a powerful price negotiating tool when you're ready to make an offer.\

4. Introduce yourself to an experienced, full-time Realtor with whom you feel comfortable. Ask him or her to act on your behalf as your "Buyer's Agent." Only when acting as your Buyer's Agent is a Realtor required to work for your beneift and yours alone. The Realtor whose name is on a for sale sign, at an open house or a sales representative at a model home is NOT looking out for your best interests. They are working for and looking out for the Seller, not you.

5. Your Buyer's Agent Realtor will help you understand how your your housing affordability and your list of needs and wants fit with the market of for sale homes in your area. He or she will then research the best home values and neighborhoods that meet your criteria and provide you with a list of homes currently on the market that fit those criteria.


6. With or without your Realtor, drive around town visiting those neighborhoods you find most appealing and within your price range and identify those two or three neighborhoods and school districts you would most like to live in. This step will save both you and your Realtor a lot of wasted time and also help you to focus your criteria. After this step, you may want to sit with your Realtor again and adjust your Needs and Wants list and make changes to your priorities of needs versus wants, if necessary. Remember that this list is only as useful as you kept it in touch with the realities of your situation. It is natural to have started out with higher expectations than reality will allow, so do not be embarrassed or concerned if your list changes somewhat at this point. Update your list and carry on.


7. If you want to include "Short Sale" and "Foreclosure" homes in your search, be sure you fully understand how these procedures work (or in many cases, don't) and the amount of time those processes can take. Your Realtor can explain the process by which these types of transactions occur and clarify for you the pros and cons of both of these home buying processes versus a normal purchase transaction.

8. Now get out there and get going. There are wonderful homes available in this area at very attractive prices right now, but you need to be ready to act when you find the one you want. Your Needs and Want list, that hopefully you've kept up to date, will help you know when "this is the home for us."

The most desirable homes at the most attractive prices don't sit on the market for long, even in today's marketplace.

9. Work with your Realtor to decide upon your offer price. Your Realtor will help you by analyzing comparable properties in comparable neighborhoods to decide on an appropriate offering price. If you were able to secure a pre-approval letter from a lender, make sure it is still in effect, and attach it to your offer if you are offering less than the full asking price.

10. Work through the multi-step cotract-to-closing process. This process will include a home inspection, finalizing you mortgage application, and several other steps all of which your Buyer's Agent Realtor and your lender will help you with.

Eventually, you will sign more papers than you'd ever imagine possible at the closing and then you'll be ready to move into your first home. Congratulations !!