The Three Most Important Things to Consider Before Diving into your First Home Purchase
For most of us, purchasing our first home is a memorable time, filled with excitement and possibility.
The jump into Atlanta home ownership comes with its fair share of worries and anxiety, as well. This is because, for most of us, our home will likely be the largest purchase we ever make, and that can make us all feel a little…well, on edge.
There are several things, however, you can do now to prepare for your Atlanta home ownership journey, and to make the journey less stressful and chaotic.
1. Get your finances in order. With today’s tough lending standards, it is probably wise to take a look at your credit report and your FICO score before you sit across from a loan officer. There is certainly no better way to squash your dreams of owning your first Atlanta home than with negative news from a lender.
The first thing you will probably want to do is pay off as much debt as possible before applying for your home loan, as this will decrease your debt-to-income ratio, which will ultimately make you a better credit risk. Second, order a copy of your credit report from all three of the credit reporting agencies, and take the time to thoroughly examine them. If there are mistakes, contact the credit reporting agency immediately. If there are credit mistakes that still need cleaned up, do them immediately.
Finally, it is important to understand that, because of today’s tighter lending practices, many lenders now require a FICO score of over 700. Talk with a couple different lenders to find out more information regarding their requirements.
2. Get Prequalified. Getting prequalified is an extremely wise decision, particularly for new homeowners, as it enables them to understand their budget and their price range. It also serves as a bargaining tool during the negotiation process with the home seller. In other words, you will look far more attractive than a buyer making an offer without a prequalification letter.
You will also know how much home you can afford, which therefore will save you the hassle of looking at houses that are beyond your budget.
3. Find a Great Real Estate Agent. A well-qualified real estate agent can do far more than find you your new home. He or she can educate you on the ins and outs of the real estate market and home buying process. Take your time and choose an agent with whom you have a good rapport, as you will certainly be looking for someone who will take the time to guide you through the home buying process.
4. Take a First-Time Home Buyer Class. Many real estate companies offer first-time home buyer classes, which are designed to give you a crash course in purchasing your first home. These classes, which are usually free of charge, will likely empower you and provide you with the information necessary to forge ahead and purchase your first Atlanta home.
Tina Fountain Realtors represents buyers and sellers of real estate in Atlanta Georgia including homes for sale in Kennesaw.
