A home purchase is a significant investment and a large step. It is important to ensure that you are ready to purchase your next or first home.
You need to know what you want, your budget, your financial plan, and your willingness to accept the responsibility.
You need to ask the right probing questions to help you determine these things. These are the 5 questions you need to ask before buying a house in Atlanta.
1. Can I actually afford to buy a home?
You should first determine if you have the financial means to buy a property in Atlanta. You must be honest with yourself when answering this question.
It is an expensive venture, and you must plan out your entire budget before considering buying a home. Buying your next home is a good idea if you have the cash, closing costs, and homeowners insurance.
According to industry experts, these figures will help you to decide whether purchasing a home is right.
“Your mortgage payment should not exceed 25% of your gross income. This can be increased to 28% if there are no other debts. You will need to combine the payments of two mortgages to determine whether you meet the criteria.
Additionally, your total monthly debt payments shouldn’t exceed 33% of your gross income. If you exceed what you can afford, you could lose your home. Be realistic. Renting a house is an option if you are unable to afford it. You can also look for something more affordable.
2. What is most important to me in a new home?
Once you’ve figured out all aspects of affordability, it is time to consider what is most important for you when buying a home.
“Light? Space? Views? A wheelchair accessible? A yard? A close proximity to schools/parks/your fitness center? Do you have a preference for floor plans?
Are you looking for an additional bedroom? Do you need storage? Parking? Care about your neighbors? Luxury living Affordable monthly fees
You have so many options when it comes to amenities and features. It can seem overwhelming. Experts recommend that you spend time deciding which features you need in your home before you begin to search.
Use this checklist as a guide to determining which homes are worth seeing and for deciding what budget is feasible, given the importance of certain amenities.
An Atlanta agent can help determine the most important thing in a house. For more information, please call 678-337-1165.
3. Is my credit good enough to buy a home?
Your credit score is important when purchasing a home in Atlanta. Are you a good buyer? Is it possible to obtain financing?
Industry professionals say credit history and current score can determine your standing among other buyers. You will want to ensure you get the best mortgage package to help you buy a home.
You can immediately improve your credit score if it is lower than you want. You must pay all debts off, or at the very least reduce them.
Make sure to correct any mistakes in your credit report. A higher credit score can help you get a better interest rate and better terms for your mortgage.
4. How do I plan to finance the purchase?
It is important to understand how you plan to finance the purchase of a house and your financial options.
What length do you want the loan to be? You have the option to choose from a 10, 15, 20, and 30-year mortgage.
The length of your mortgage will affect how much you pay each month. However, it will impact the amount you pay in interest over the loan’s lifetime.
If this is your first house, you may be eligible for a Federal Housing Authority loan (FHA) with lower down payments. These loans can also be used by those who might have trouble getting approved by conventional lenders.
Financial experts recommend that homeowners do their research on all types of loans to ensure they are choosing the right financing option.
5. Am I really ready for the responsibility of homeownership?
Final, before purchasing a home Atlanta, it is important to assess your readiness for homeownership.
You become a homeowner and are responsible for many of the same things that landlords oversee when you rent. Make sure you can afford to insure your home and cover any other costs, such as buying furniture or paint. A fund for home repairs should be set up, at least $5,000, before you buy. You shouldn’t wait to buy a home if you have a tight budget for your house payment.
Bonus: Have I found a good real estate agent?
One last question that is often overlooked when purchasing a home is: “Does my local market_city agent have the experience and knowledge to help me?” Good agents can make a big difference in the smooth running of your home search process. Contact us at 678-337-1165 if you’re interested in buying a house within Atlanta.
Let us help you to start living in your dream home now. Our rent-to-own home programs might be perfect for you.