Analysis

Congratulations on your decision to buy a new home!

Your first step toward buying your new home will be to consider your needs. Thinking about your needs will enable you to visualize just how you want your new home to look, and how it should serve you.

First, make a list of reasons why you have decided to buy a new home. For instance, perhaps you are currently renting and would like to put your money into a home that you own, where you can build equity. Maybe you have outgrown your current residence because you got married or had children.  Possibly, your kids are about to start school, and you want to move to a better school district. Each of these items will have an influence on how you approach your search for a new home.

Choose a time frame within which you would like to stay for your home purchase. You should be able to come up with an idea of how long it should take, depending on your reasons for purchasing a new home, and on the current conditions of the housing market where you wish to buy.

Lastly, you probably have an image of how you would like your house to look and what amenities it should have. It's vital to list these ideas in writing, to avoid any uncertainty later in your search for your new home. It’s best to make at least two lists: The first should describe your dream home, the home you’d have if you could have anything you wanted. The second should list your “must haves,” the characteristics a home must possess in order to buy it. With some amazing stroke of luck, your new home could fulfill both lists 100 percent. In reality, it is more likely that you will end up combining your two lists into one list of priorities as you advance through the purchasing process. This is a natural evolvement that occurs as what you truly want becomes evident and you see what is available.

Let your Family Mortgage of Georgia Loan Consultant save you time and money by putting their expert knowledge and abilities to work for you. We can help you adapt your wants and needs to fit into your home purchase plan. We will help you to focus your energies into what is best for you and your family. and your family.

 

Loan Pre-approval vs. Pre-qualification

Now that you have created your list of amenities you want in your new home, are you ready to start searching?  Well, not quite. You will need to know what price range you can afford. There are two ways to go about this: You can either get pre-qualified, or pre-approved for a mortgage. Whichever you choose, you will need to contact a dependable mortgage company. At Family Mortgage of Georgia, we offer fast, FREE pre-approvals. 

You should be aware that there are some key differences between prequalification and pre-approval for a mortgage. Loan prequalification is a simple procedure. It considers very basic information regarding your financial status and comes up with an amount for which you may be eligible. This can be done exclusively on a verbal level or electronically via the Internet.

The amount you prequalify for is based solely on the information you provide. In an area like Metro Atlanta, pre-qualified buyers usually have little clout, compared to pre-approved buyers. This is because the data given during the prequalification process is not thoroughly investigated and therefore may not be reliable or accurate. A pre-approved buyer is actually approved for a loan of a certain amount, while a pre-qualified buyer has only been told that they may possibly be approved for a certain amount.

Getting pre-approved is a much more involved procedure. The lender will take all necessary information regarding your finances and perform a comprehensive analysis of your current financial situation. This will conclusively give you the exact amount that you are eligible for (depending on what type of loan you decide to get). Having pre-approval shows the seller that you have gone through an extensive financial background check and there should be no unforeseen barriers to keep you from buying the home.

It’s easy to see how being pre-approved would be more attractive to a seller than just being pre-qualified. They have the peace of mind of knowing there won’t be any ugly surprises. Pre-approval can even put you in a better negotiating position with the seller, because with you there’s a guaranteed sale of their home. A prospective buyer who only has a “prequalification” is not a guaranteed sale!

 

Finding the Right Place to Look

Now that you have made your list of wants and “must haves,” and you are now sure how much you are eligible to spend, there are a few more things to think about. Take a step back now, and consider the grand scheme of things. No one ever just buys a house; they buy the community and the school district in which the home is located. Think about it...if you found the house of your dreams, but it was in a neighborhood or school district that was not what you wanted, would you still make an offer on it? For most of us, the answer would be, "No."
So now you need to make another list of what type of neighborhood in which you’d like to reside. Some things to consider when compiling this list are: how living in this neighborhood will affect your commute; what amenities you would like offered (swimming pool, tennis courts, park, golf course, lake, etc.); if you have children that are or will soon be school age, what school district you will be in and the proximity of the schools to the neighborhood. It might be wise to make two lists just like you did with your home criteria.
If you have limited knowledge about the area of Atlanta that you are considering moving to you will want to start your search by speaking to your real estate professional to find neighborhoods that meet your needs.  At this point you will be able to narrow your search to homes in those neighborhoods.
Another good way to help decide where to look is to browse your realtor’s website to find the right school(s) or study the maps to see where you are and or will be working, then discuss the commute with coworkers that live in various directions from your office to see which commute is the best (then drive it yourself).
Your real estate agent can save you time by taking the information from your list of needs and wants for your home, your pre-approval, and your list of needs and wants for the neighborhood and incorporating them into a broad search profile which will then be narrowed down to specific areas dictated by the market in which you will be looking. Your real estate professionals experience in the local area will be an invaluable source of information during this phase.

 

Finding and Touring Homes

By now, you will have a good idea of what you can afford and what type of neighborhood you want to live in. All of this considered, you are ready to set out on your search for your new home.

A top-notch real estate professional will pride him- or herself in keeping updated on certain parts of the Atlanta Metro area. Your real estate agent will save you time by keeping you up-to-the-minute on properties that meet your criteria as they become available.

By using your realtor’s website, you can eliminate the random searching through newspapers, and allow the listings to come to you via email, or you can search the MLS. This way, when you find several homes that you would like to see, your real estate consultant will arrange for you to tour the homes at your convenience.

Sign up for a Homescanner account   (at the top right of this page) The main objective in your search for a new home is finding properties you like! With our Homescanner system, you can establish your desired parameters and narrow the thousands of homes available in the Atlanta area down to your favorites. 

We are always glad to do searches for our clients, but we have found that most people prefer to see all their options for themselves.  Never hesitate to ask us to search for appropriate homes for you, but there is nothing quite like the feeling when you see a house on Homescanner that really jumps at you.  We are, of course, available if you have questions about the Homescanner system, areas of Atlanta, or anything regarding the home-buying process.   

 

Making the Offer

Now that you have found the home you would like to buy, the time has come to make an offer. Taking into consideration the recent sales of properties in that neighborhood which are similar in size, quality, conveniences, and amenities, how much are you willing to offer for the home? Your Real Estate Consultant will provide you with a list of the recently sold surrounding homes that are similar in size, quality, conveniences, and amenities and help you decide how much to offer.

If you have any questions or concerns, they need to be addressed right away, so don’t hesitate to call your Realty Consultant. Your Realty Consultant can save you time and money by making sure that your questions are answered and your concerns resolved quickly.

 

Contract Negotiations

Once your offer is received by the seller, negotiations may be necessary to reach an agreement. Bear in mind that almost anything is negotiable when you are buying a home. This can give you the upper hand in the buying process, that is, if you have enough accurate information and you use it in an appropriate manner. Some of the things that you may need to negotiate are:

The key to successful negotiating is keeping in mind that the end result must make you, the buyer, and the seller happy. Your Realty Consultant can save you time and money by representing your best interests and negotiating on your behalf. Your Realty Consultant has the knowledge and expertise necessary to make sure that your offer is accepted at the best price and terms possible for you, not the seller. Do all real estate agents do this? We were told once by OUR agent that they represented the seller.

 

Inspections

So your offer has been accepted! Now it’s time for the property to be inspected.  A property inspection,  HVAC inspection and environmental (asbestos, mold, radon) test should be completed to ensure that the property meets or exceeds the standards as stated in the Purchase and Sale Contract. If there are issues or discrepancies exposed, you typically have 10 days during which to reach agreement on how the issues will be resolved by the seller.

Having these procedures executed in a timely and professional manner is vital.  If they are not taken care of correctly, the seller can demand performance and at a minimum you will lose your earnest money. You could also face a lawsuit that demands performance. Your Realty Consultant can help you find the appropriate companies to do each inspection and complete the necessary amendments to the contract to avoid such problems.

Homeowner’s insurance is another very important matter that we will need to consider at this point. Insurance professionals recommend that you obtain insurance equal to the full replacement value of the home. Without proper insurance coverage on the home in place, the closing cannot go forward.

Your Realty Consultant will save you time by overseeing the coordination of all essential inspectors and contractors. He or she will ensure that they have access to the property at the appropriate times.  It is recommended that you attend the inspections yourself to discuss the findings with the inspector(s).  Your Realty Consultant's experience in this arena will be highly beneficial in making sure that all inspections are completed on time and in a professional and legal manner.

 

Pre-Closing Preparation

As the date of the closing draws near, you will need to make contact with the closing attorney and your mortgage lender to ensure that all the necessary documents are being prepared.

A few days before the closing on your new home, you will need to contact your utility services such as electricity, gas, cable, water, and phone set up, Your Realty Consultant will provide you with the information for the appropriate utilities to contact.

Lastly, you should find out what form of payment you will need to bring to the closing for any unpaid fees. Be sure that your payment is made out to the appropriate party. Your Realty Consultant can save you time by coordinating the necessary documentation with your closing officer to make sure you have a quick, easy closing. 

 

Closing

At closing, ownership of the home is legally transferred from the seller to the purchaser. It is a formal meeting in which most parties involved in the buying/selling process will attend.

Closing proceedings are typically held at the office of the closing attorney or the mortgage broker. Your closing attorney organizes the document signing and the collection and disbursement of any funds. In order for the closing to go smoothly, each person involved should bring the required documentation and be prepared to pay any applicable fees.

Most lenders will allow a credit to the buyer from the seller, for the non-recurring closing costs. They usually will not however, allow a credit that reduces the amount of the buyer's down payment or any of the buyer's recurring costs, such as homeowner’s insurance premiums, property taxes or Private Mortgage Insurance (PMI)...

Your Realty Consultant will be present at the closing to help by answering any questions or helping to resolve any problems that may arise. Your Realty Consultant will also be available to handle any last minute or unforeseen details.

Congratulations on the purchase of your new home!