Posts with tag 'First-time buyers'

You've looked at many Atlanta homes for sale and finally found one that you love. You probably can't wait to get started with the purchasing process. But you have to make an offer to show to make sure the seller takes the house off the market as you work on different closing aspects. Accepting an offer is a big commitment for a seller. If the buyer backs out of the deal, the seller loses a significant amount of money and time finding another buyer. This is where sellers request earnest money. Read on to learn what earnest money is, when to offer it, and steps you can take to protect your upfront investment.

Understanding Earnest Money

Earnest money is a deposit made to a seller as a good-faith gesture that you mean business when it comes to buying the house. It's a way of you showing the seller that you're serious about closing the deal. Sellers tend to favor these deposits because it gives them peace of mind to proceed to the next steps of the transaction. Earnest money doesn't go to the seller right away. Instead, it is held in an escrow account with an escrow company until closing.

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The mortgage loan application process is quite rigorous - one or several strikes against you and the loan officer decides that you don't qualify. There are many reasons why your request for a loan may have been rejected. Receiving a rejection letter can certainly be a disappointment. But rather than dwell on the unfortunate outcome, use it as a valuable learning experience and correct the problem. Our real estate agents share five possible causes for a mortgage loan denial and what you can do to improve your chances moving forward.

• Down Payment is Too Small
  A down payment shows lenders that you're capable of saving money, and you're serious about investing in your future home. So, a small down payment does little to put their minds at ease. Conventional loans require a down payment anywhere between 5% and 20% of the total value of a home. If you come up with anything less than 20%, chances are very high that you'll receive a denial or be required to pay private mortgage insurance.
  
  How to fix: Start saving early enough so you reach the 20% threshold when submitting your application or wait and give yourself time to save up the funds. You can also use a gift from a relative as long as no repayment is expected. Ensure you're transparent in documenting the source of the money. Finally, you can have the seller pay some of the closing costs.

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Getting pre-approved for a mortgage is a crucial step on the path to buying a home, and one that every shopper should look into when they get serious about making a purchase. Pre-approval allows you to get a strong idea of the funds you'll have available to spend on your home, makes it easier to plan your budget, and shows sellers that you're a serious buyer. But it's important to be prepared before speaking with lenders, so when is the right time to get pre-approved? Our real estate agents are here to help, with a guide to planning for mortgage pre-approval when shopping for a home.

• Why Pre-Approval Is So Important
  When you're competing with other buyers for Atlanta homes for sale, you want to do everything that you can to make your offer stand out from the pack. Getting pre-approved for a mortgage shows sellers that you have the necessary funds available to back your offer, and gives seller's agents a reason to take your offers seriously. From your perspective, pre-approval provides a firm range for how much home you can afford and allows you to start planning for your purchase with confidence. Overall, a buyer with pre-approval is in a much better position to close the deal.

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As the January approaches, our real estate agents want you to start the New Year on the right foot. Instead of choosing a resolution, we believe it's fun and exciting to try a new hobby. Here are a few popular activities you can try in the New Year.

• Find Your Om at Tough Love Yoga — 1530 Dekalb Ave. NE. Suite D., Atlanta, GA 30307
  Making a resolution to commit to an exercise regiment is a healthy choice but did you know that you can get a great workout in just through stretching? Find your "om" at Tough Love Yoga where you'll learn yoga poses through a variety of lessons. Classes include Deep Stretch, Prenatal Yoga, Basics, Yoga + Meditate. Moms-to-be will enjoy Prenatal Yoga while rockers will love Metal Yoga. There's a class for you at this affordable and accessible yoga studio in Atlanta.

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Our real estate agents at Josey Young & Brady Realty know that buying Atlanta homes for sale starts long before you reach out to us. In fact, many people save up for months or years before they embark on the journey of buying their own home. Even if you only have a few months to get ready, there are steps that will help! Two financial habits are essential to achieving your goals:

• Save up money so that you can easily handle a down payment or closing costs.
• Reduce your debts so you can improve your credit score before getting a loan.

Of these, it's the second one that creates the most confusion! Every time you pay down debt, you are raising your credit score. Your credit score, in turn, is a numerical representation of your good financial habits. It uses a number of factors to help lenders assess the risk in offering you a loan.

There are opportunities to raise your credit score every month. A change of just a few points can give you access to loans on more favorable terms, so knowing how your credit score works is worth the effort. Let's look at some of the best ways to improve your credit before applying for a home loan.

1. Pay Bills on Time
   Most people have predictable income from work and set, monthly due dates for bills. Still, with so many things to keep track of, it's possible to let something slip. Set up a calendar, use a mobile app with reminders, or set up automatic payments to ensure bills get out on time.

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