The real estate market in Georgia can be confusing for first-time buyers. How do you navigate the real estate market? Is it worth working with Georgia realtors? How do you get a loan?
No matter if you’re looking for a home in Atlanta or a smaller town, you need some first-time buyer education. With the knowledge of the market and mortgage approval process, you can easily choose an agent from the Atlanta Board of Realtors and local agents in Savannah or Columbus. The more you learn about the housing market in Georgia, the easier it will be for you to get a great deal.
Georgia housing market overview
The real estate market in Georgia is growing. However, you must be aware of different cities’ local nuances. The economy, season, and the same town or area would significantly affect how fast you can close the deal. Make sure to research or consult the local real estate agent to find out more details about the future market.
If you’re limited time and are prone to make fast decisions, you can take advantage of the peak season in the summer. However, during the winter or fall, you might find a cheaper option with a more prolonged search.
Advice you need to know if you’re looking to buy a home in Georgia
Understanding the timing when to buy a property is one thing. Another is to be ready to make the purchase. There are a lot of hidden pitfalls that first-time buyers might not realize are crucial. Here are some main pieces of advice you should know when getting ready to invest in your first property.
Be ready for a down payment.
The downpayment is the part of the final price that you have to pay during closing. The rest will be covered by financing if you get a mortgage loan and you make monthly payments. In Georgia, mortgage lenders expect you to pay a minimum of 20% of the house price. If the average house price is $306,110, then $61,220 would be the down payment.
If you didn’t save enough, the mortgage lenders could offer you a lower down payment. It comes with more responsibility as you borrow more money. You will have more significant monthly payments and longer loan payment time. Sometimes, you would have to buy mortgage insurance.
Thankfully, Georgia cares about first-time home buyers. You can get enough money from a government grant or second mortgage. Those programs are designed to provide help for first-time buyers and low-income families. Some national and state programs from the US government help certain groups, like veterans or military members. With some of them, like the Georgia Dream Homeownership Program, you can lower your down payment to 3% or even 0%.
Don’t jeopardize the mortgage pre-approval process.
Getting pre-approved for a mortgage is one of the most critical steps you have to take before you start actively searching for a house. Most sellers in Georgia won’t even let you do showings without a pre-approved letter. The mortgage lending companies will require the following information to provide you with pre-approved status:
- Level of total income;
- Personal debts ( credit cards, student loans, auto loans);
- Reserves of cash.
After you get pre-approved, you must keep your financial situation stable and not jeopardize your mortgage. Avoid opening new credit accounts and paying your credit card bills on time. It’s recommended to avoid closing any long-lasting account you had by the time you get pre-approved.
Explore the neighborhoods and areas.
Sometimes when the search is too long, we give up on our principles trying to fit into the budget. Be smart and do proper research about neighborhoods you would be the most comfortable living. Make sure the area serves all your needs for a couple of years.
Pay attention to the crime rates, commute situation, school locations, restaurants, and shopping areas. Keep in mind that the average price for the house will range from neighborhood to neighborhood. A little research ahead of time will show you if there is anything fishy you need to be aware.
Trust the local real estate agent.
Finding the right realtor is key to a successful closing. There is no need to rush and sign the deal with the first agent you interviewed. Have a couple of meetings to find a realtor who:
- Knows your preferred neighborhood:
- Has experience working with your budget range;
- Has excellent communicative skills;
- Has a high number of transactions in a year.
An experienced agent can help you find the best-fitted list for your budget and requirements. You could also get helpful information about the market, season buys, house inspections, and signings.
In conclusion, it has to be said that no matter how challenging it is to become a homeowner, it is a significant and exciting step in every adult’s life. To help low-income families or first-time buyers, Georgia has plenty of home assistance programs.
Such a chance makes it possible for all first-time buyers to be able to afford the mortgage. Using all the research and tips, you are set to conquer the real estate market in Georgia in the search for the new perfect home.
