6 Things Experienced Buyers Know, That First-Time Home Buyers in Atlanta May Be Unaware Of

First-time home buyers in Atlanta are almost always at a disadvantage. They are doing something they’ve never done before, and, having no experience with home buying, often wind up making big and costly mistakes. Experienced buyers, however, have been through it all before and know what to be aware of and what to look out for. But we’d like to save you the rough blows and unexpected expenses that are part of the school of experience and hard knocks. So here are 6 things experienced buyers know that first-time home buyers in Atlanta may be unaware of.

1. Shop for a Lender

First-time home buyers in Atlanta are often so excited about buying their first home that they don’t do due diligence with respect to lenders. They often go with the first lender who offers financing. But that’s a mistake.

First-time home buyers (or any buyer, really) should talk to more than one lender and shop for the best deal for their particular needs. Finding the right mortgage is almost as important as finding the right home. So first-time buyers in Atlanta should carefully consider these factors:

• Interest rates
• Origination fees
• Mortgage insurance premiums 
• Third-party fees

In addition, you should shop various types of lenders, for example, big banks, local banks, credit unions, and online lenders. The fact is if you go with the wrong lender, it could wind up costing you thousands of dollars over the life of the loan.

2. Buy for Tomorrow, Not Today

Another thing that most first-time home buyers in Atlanta are unaware of is that in buying a home they should really be buying for the future rather than merely for today. Needs, lifestyles, and family sizes can change quickly, and a home that suits your needs today may not in the near future.

Yes, you can always sell your home and trade up, but there can be huge financial drawbacks. On average, it takes about four years to recoup the costs of buying a home. So if you wind up having to sell in just a couple of years because you outgrew your home, you’ll likely lose thousands of dollars.

Your Atlanta agent can provide valuable assistance here, helping you select a home that will be right for you both today and tomorrow. To discover more about this, just call 678-337-1165.

3. Pay Attention With All Senses

Also, when viewing a potential home, you should use all your senses. First-time home buyers in Atlanta often make the mistake of using only their eyes.

For example, did you stumble downhill a little when entering a room? That probably indicates a sloping floor, which typically means foundation problems. Or did you detect a funny smell in the bathroom? That could be a sign of mold problems – and mold abatement is a long and expensive process.

Basically, you should use all your senses to detect possible problems and not just pay attention to the attractive things you see in the home. Your agent can be a valuable asset in this regard as well.

4. Inspectors Always Find Problems

First-time home buyers in Atlanta should also be aware that inspectors always find problems. This doesn’t necessarily mean that you should call the deal off, but you should pay attention to the inspection report.

You may be able to overlook minor things, but not major problems. If, say, the inspection finds that the roof needs to be replaced, it’s possible that you should reconsider. Or maybe you could have your agent negotiate a deal in which the seller repairs the roof or reduces the price.

5. The Escrow Account

And then there’s the escrow account, which many first-time home buyers in Atlanta are utterly unaware of. Surprise, out-of-pocket costs are no fun for anyone.

Some lenders require the setting up of an escrow account alongside the mortgage loan. Its purpose is to allow the lender to pay specific ongoing, property-related expenses on the borrower’s behalf – to make sure they get paid – such as private mortgage insurance and property taxes. Typically, the buyer will make a deposit into the escrow account at closing and then pay a little each month above the mortgage payment.

6. The Value of a Atlanta Agent

A final thing experienced buyers know that first-time home buyers are typically unaware of is the value of a good Atlanta agent. Experienced agents are top negotiators, and your agent can get you the best deal possible. Don’t pay more than you have to. Contact us today at 678-337-1165 if you’re one of the first-time home buyers in Atlanta.

from Blog – Fresh Start Home Sales https://www.freshstarthomesales.com/first-time-home-buyers-in-atlanta/
via https://www.freshstarthomesales.com

5 Resources to Help You Judge the Safety of a Atlanta Neighborhood Before Buying a Home

You’ve no doubt heard the old saying that only three things matter when it comes to real estate: location, location, and location. That is, of course, a cutesy and oversimplified piece of advice, but it’s still worth heeding, especially with respect to determining the safety of a neighborhood before buying a home. For location and safety go hand in hand, and you need to know before you buy. So be sure to check out these 5 resources to help you judge the safety of a Atlanta neighborhood before buying a home.

1. Crime-Mapping Services

Certainly, one of the best ways to determine the safety of a Atlanta neighborhood before buying a home is to look into the local crime rates. There are plenty of online venues that will allow you to do this, but a couple of the more reliable sites are CrimeReports and SpotCrime. 

You simply type in the address of the prospective home, and you’ll get a list of all the crimes committed in the area. Typically, you’ll get a breakdown of crimes by type and date committed. There is also a feature to allow you to compare the number of crimes committed in this neighborhood with crimes in other nearby areas, thus giving you an idea of how crimes in your prospective neighborhood stack up against those in surrounding areas and neighborhoods.

But you also need to be aware that crime rates don’t always tell the whole story. For example, the size of the neighborhood can skew the results because crimes committed in a small neighborhood will yield a higher crime rate.

For assistance interpreting crime-rate results, contact a Atlanta agent. To discover more, just call 678-337-1165.

2. National Sex Offender Public Website

Also, when it comes to crime rates and the safety of a Atlanta neighborhood before buying a home, it pays to drill down a little and get more specific. A great resource for parents considering a particular neighborhood is the National Sex Offender Public Website (NSOPW) – a free resource that provides information on registered sex offenders.

“Not only can you look up your current neighborhood to check for nearby offenders, but you can also investigate any potential new neighborhoods before relocating to an area. This tool is particularly helpful for those with children, as the website allows parents to access important information on any child predators in the neighborhood, and includes a photo of the offender. The website also provides important tips and advice on protecting yourself and your family from potential victimization.”

3. AreaVibes

AreaVibes is an online tool that allows you to easily check out a neighborhood before buying a home. It analyzes various communities and gives them a “Livability Score” of up to 100 based on important livability factors such as amenities, schools, cost of living, and the local housing market.

“AreaVibes also analyzes a neighborhood’s crime rate. All you have to do is enter the address, neighborhood, or zip code to see your city’s Livability Score and rankings. Within each city, AreaVibes provides a ‘Neighborhoods’ tab, which can be used to find specific information on individual communities. These neighborhood crime reports will give you a general idea of the safety level of that area.”

This tool will give you a good idea of the following:

• A neighborhood’s overall crime statistics and crime rate
• How it compares to both the state and national averages
• The likelihood of your becoming a crime victim there

4. Your Feet and Your Mouth

A highly effective way of judging the safety of a Atlanta neighborhood before buying a home is simply by using your feet and mouth – that is, by walking around the neighborhood, observing and talking to residents. Online research works, but it just can’t beat in-person, local observation, taking in the small details, and chatting with people who live there.

But do try to visit the neighborhood on both weekdays and weekends and at different times of the day. For example, your new neighbor’s kid might get his drum kit out only during evenings or at weekends. And there might have been a reason the student house on the other side was so quiet on the morning of the open house: Its residents were too hungover to get up after one of their frequent all-night parties.

Neighborhood residents will have the best insight into what actually goes on in the neighborhood and what it’s really like. Talking to them will allow you to find how safe the neighborhood really is and just how well it will really suit you.

5. Consult Your Atlanta Agent About the Neighborhood Before Buying a Home

And definitely make a point to talk to your local real estate agent about the neighborhood. Your Atlanta agent will have a good handle on the safety of a neighborhood and its suitability for you and your family, having a thorough understanding of crime rates and neighborhood personality. So to accurately judge the safety of a Atlanta neighborhood before buying a home, contact us today at 678-337-1165.

from Blog – Fresh Start Home Sales https://www.freshstarthomesales.com/safety-of-a-atlanta-neighborhood-before-buying-a-home/
via https://www.freshstarthomesales.com

How a Atlanta Agent Can Help When You Are Buying a House From a Friend or Family Member

Buying a house typically involves a long and complicated process and not a little anxiety. So buying a house from a friend or family member can often seem like an easy solution to make the process quick and manageable. And it can be – if everything goes right. But there are many pitfalls and complications that can often be handled only with the help of an agent. Read on, then, to find out how a Atlanta agent can help when you are buying a house from a friend or family member.

TransactionTerms

First, we need to look at some terms, that is, arms-length transaction and non-arm’s-length transaction.

An arm’s-length transaction is the standard type of transaction involved in buying a Atlanta house. “An arm’s length transaction is a transaction between two parties who don’t have a relationship with one another – whether that’s a family tie, a business connection, etc. Each party is confidently able to act in their own self-interest. For example, when you buy a house from a stranger, it’s considered an arm’s length transaction.”

A non-arm’s-length transaction, on the other hand, is a real estate deal with someone you do have a relationship with, most often a friend or family member. “When a relationship like this exists, there is a greater chance that one party could manipulate the other party in some way, or both parties could work together to try to cheat the fair market price of the home. This is an example of mortgage fraud.”

And that’s why – owing to the possibility of fraud and the legal implications – we want to examine the important role an agent can play when you’re buying a house from a friend or family member. To discover even more about this, contact a Atlanta agent at 678-337-1165.

Legal Aspects of Buying From a Friend/Family Member

This type of real estate transaction is indeed legal, but there are some considerations to keep in mind . . . 

First, there’s the possibility of fraud, and that’s where the principle of transfer pricing comes in. This requires that the sale price of the house be the same as it would be for a transaction between strangers in an arm’s-length transaction to protect involved parties against manipulation. A Atlanta agent can help with pricing to keep you out of legal hot water.

In addition, because of the fraud potential, buying a house from a friend or family member (a non-arm’s-length transaction)  is “treated with a higher scrutiny than an arm’s-length transaction. There are more government and individual lender guidelines to follow when trying to get a mortgage for a home. There are a few things lenders want to guard against in family deals, and some of them are for your own benefit.”

Areas Where a Atlanta Agent Can Help

Buying a house from a friend or family member can raise any number of sticky issues. So let’s look at just a few of these that a Atlanta agent can assist you with . . . 

ADDITIONAL RESTRICTIONS

“With a non-arm’s-length transaction, you’re going to risk running into more obstacles with getting a loan because of all the added restrictions, and you may be subject to extra taxes because the IRS will be watching closely to make sure a fair market value – and interest amount – is paid for the home. If you buy the home at a cheaper price and then sell it within a few years, you may be subject to capital gains taxes as well.”

EMOTIONAL RESPONSES FROM OTHERS

Buying from a friend or family member can elicit envy or jealousy from other close friends or family members. Your agent can help steer things to keep them on an objective footing, making sure the transaction is treated purely as a business deal.

CHANGE IN SELLER’S FINANCIAL POSITION

“The next potential pitfall is a sudden shift in the seller’s financial situation, which could move them to ask you for more money on the purchase, especially if they provided the loan for you instead of a mortgage lender.” This is a situation in which your Atlanta agent’s cool negotiating skills will prove their worth.

You Must Find Out . . .

Also, when buying a house from a friend or family member, you absolutely must know everything you can about the house. The problem, though, is that full disclosure is often harder to come by in such situations. Your Atlanta agent can help you find out what you need to know about these critical points – before it’s too late: 

• Whether the friend/family member is current on mortgage payments
• Whether the title is clear, without any liens or other encumbrances
• When and how to get the legal assistance you may need

Buying from a friend or family member can be a great way to simplify a complex process. But it is also fraught with dangers and littered with legalities. So be sure to get the help you need. If you’re considering buying a house from a friend or family member, contact us today at 678-337-1165.

from Blog – Fresh Start Home Sales https://www.freshstarthomesales.com/atlanta-agent-help-when-buying-a-house/
via https://www.freshstarthomesales.com

5 Things To Do Today if You are Thinking of Buying a New Home Within the Next Year in Atlanta

Anyone thinking about buying a new home within the next few months or within the next had better be ready for some competition and a tough market. If you’re a prospective buyer and you want to “win,” you’ll have to be prepared – with the right expectations, with a compelling offer, with the right tools, and with some financial readiness. So check out these 5 things to do today if you are thinking of buying a new home within the next year in Atlanta.

1. Prepare for Low Inventory and More Competition

First, if if you’re thinking of buying a new home within the next year in Atlanta, you need to prepare for competition. “If you find a reasonably priced house in good condition, chances are you won’t be the only one making an offer – even if it just hit the market. It is a seller’s market in just about every part of the country . . . ‘Seller’s market’ is a real estate term used when there are more prospective buyers than homes for sale.”

When inventory is low – with more buyers than available houses – and competition is stiff, two things typically come into play. First, you’ll have to be flexible to gain a competitive edge, often having to make concessions to ensure yours is the winning bid.

The second thing is that most buyers will benefit immensely from the services of a good local agent – especially her negotiating expertise in this seller’s market. To discover more, contact a Atlanta agent at 678-337-1165.

2. Be Ready for Prices to Continue Rising

Another preparatory thing to do ahead of buying a new home involves the continuing rise in prices. “Real estate experts expect home prices to go up in 2021, but not as fast as they did in 2020. Prices of existing homes are projected to increase 3.1% in 2021, compared with a 6.7% jump in2020, according to an average of forecasts from Fannie Mae, FreddieMac, the National Association of Realtors and the Mortgage Bankers Association.”

And this means, of course, that you’ll need to plan your purchase and time it right, keeping in mind the following:

• Home prices vary by season, so when you buy is important.
• Homes are typically priced highest during June/July and lowest during January/February.
• There will be more listings during warm months and fewer during colder months.
• Demand will remain high in all months.

So, again, to avoid paying too much during this time of rising home prices, be sure to lean on your agent’s expertise to get the best deal at the best time.

3. Pay Off Debt and Build a Reserve Fund

With low inventory and ever-increasing prices, buying a new home in Atlanta within the next year almost demands that you pay down or off all your debt and build an emergency fund. And here’s why . . . 

Owning a home is usually more costly than renting even if the monthly mortgage payment is about the same as (or even less than) your monthly rent. When you own your own home, you’ll be responsible for all the maintenance and repairs, as well as the many recurring costs such as property taxes, homeowners insurance, HOA fees, and more. 

4. Determine What You Can Actually Afford

Determining exactly how much home you can actually afford is another of the things to do today if you’re thinking of buying a new home within the next year in Atlanta. And this means primarily budgeting carefully and sticking to the budget to make this determination. 

Some things to include in your preparatory budget are:

• Saving for the down payment
• Monthly mortgage payment
• Maintenance/repair costs
• Recurring expenses
• Saving for emergencies

Keep in mind that property taxes and insurance premiums vary from area to area and city to city. So be sure to check with your Atlanta agent in order to budget accurately for these.

5. Learn How to Use Digital Tools

COVID-19 has changed . . . well, just about everything. And that includes the real estate industry. Now and for the foreseeable future, traditional in-person showings and other common aspects of real estate transactions have nearly ceased to exist. Today, such things as virtual tours and remote closings are the norm.

So buying a new home within the next year in Atlanta means that you’ll have to master some digital technology. “Buying a home became more challenging in 2020 as the COVID-19 pandemic turned everything upside down. But real estate agents, lenders, buyers, and sellers figured out how to make the process work in an asocially distanced world. Virtual home tours, e-closings, smaller open houses, and Zoom meetings helped keep business going while keeping people safe.”

And Find a Good Atlanta Agent

As you can see, then, a common thread running through all these tips is the value of an experienced local agent. Buying a new home within the next year comes with several challenges, a few of which have never existed before. And that’s where a good agent can really prove her worth. So if you’re in the market for buying a new home within the next year in Atlanta and want to do it in the best way possible, contact us today at 678-337-1165.

from Blog – Fresh Start Home Sales https://www.freshstarthomesales.com/buying-a-new-home-within-the-next-year-in-atlanta/
via https://www.freshstarthomesales.com

5 Solutions to Help Anyone Buy Their First Home in Atlanta

Buying your first home is seldom easy. It can (and usually does) test your patience, your endurance, and your resilience – and there are many ways the whole process can slide sideways, resulting in a missed opportunity or (even worse) a purchase you come to regret. And that’s why most first-time buyers will benefit from a little help and guidance. With that in mind, we offer these 5 solutions to help anyone buy their first home in Atlanta.

1. Make Sure You’re Ready to Buy That First Home 

Your very first step toward buying your first home in Atlanta should be to determine whether you are really ready to do it. “Homeownership is a lot more expensive than renting since you’re responsible for added costs like home repairs, utility costs, garbage pickup, water, and electricity. You also need to pay for taxes and insurance related to your home. These costs add up quickly, and if you are not financially prepared, you may end up in a bad position.”

Take a look, then, at your debt and begin reducing it in order to be in a better position to afford all the costs of buying and owning your first home in Atlanta. Also, you can determine your readiness to buy a home by setting up – and sticking to – a budget that parallels the costs of homeownership. If you’re able to stick to it and put all the money set aside in savings for a few months, then you likely are ready to buy that first home.

2. Get Preapproved Early On

Now, after determining your readiness to buy and ability to afford the costs of ownership, you should get preapproved for a mortgage loan. In fact, you should apply for preapproval before you even start shopping for a first home in Atlanta.

“A mortgage preapproval is a lender’s offer to loan you a certain amount under specific terms. Having a preapproval letter shows home sellers and real estate agents that you’re a serious buyer, and can give you an edge over home shoppers who haven’t taken this step yet.”

3. Understand Your Loan Options

Also, in buying your first home in Atlanta, you should shop for lenders. Don’t just jump at the first offer of a loan from a lender because you may be able to get a better deal elsewhere. 

In addition, it’s a good idea to have some understanding of the various loan options in order to know what is best for your situation. Are you, for example, aware of the various options that will allow you to avoid paying for private mortgage insurance (PMI)? These are . . . 

• A conventional mortgage with a 20% down payment
• USDA loan/VA loan – zero down payment programs
• FHA loan – 3.5% down payment often without PMI requirement
• 80/10/10– “10% down payment with 10% as a second mortgage to avoid PMI, which in turn lowers the monthly rate, more often than not”

Your Atlanta real estate agent can provide some assistance in this area. To discover more, just call 678-337-1165.

4. Choose the Right House and Neighborhood

Sure, you want to buy a Atlanta first home that ticks as many items on your have-to-have and want-to-have lists as possible. But keep in mind that the neighborhood is just as important as the home itself. For you aren’t just buying a home – you’re also buying into the neighborhood. So here are a couple of things to be mindful of . . . 

“Think about your long-term needs and whether a starter home or forever home will meet them best. If you plan to start or expand your family, it may make sense to buy a home with extra room to grow. Check out potential neighborhoods thoroughly. Choose one with amenities that are important to you, and test out the commute to work during rush hour.”

5. Find the Right Agent

And, certainly, one of the most important solutions for buying your first home in Atlanta is having the right agent in your corner. “The agent/buyer bond is particularly strong with first-time homebuyers .. . as the buyers often need extra detailed explanations of each step in the process. This certainly takes more time, effort, and patience on the part of the agent, and not all agents are naturals in this department. It’s important to feel comfortable with your agent like you can ask questions and get reliable answers.”

But finding an agent who can and will do these things typically requires a lot of time researching and interviewing several agents to find the one who is the best fit for you. There is, though, an easier and better way. And that is to go with an agency known for agents who have the necessary experience and expertise, as well as the willingness to do what clients need. So if you’re ready to buy that first home in Atlanta, contact us today at 678-337-1165.

from Blog – Fresh Start Home Sales https://www.freshstarthomesales.com/first-home-in-atlanta/
via https://www.freshstarthomesales.com

4 Things You Shouldn’t Do When Buying a House in Atlanta

After spending weeks or maybe months searching for the perfect house, the last thing you want is to find out you can’t buy it after all. There are several mistakes home buyers often make that land them in this situation, most of them financial mistakes. To help you avoid making these mistakes, here are 4 things you shouldn’t do when buying a house in Atlanta.

1. Don’t Overreach and Don’t Be Emotional

The most common mistake buyers make when buying a house in Atlanta is overestimating what they can actually afford and buying too much home. When this happens, they wind up with very financial wiggle room and so are perpetually on the edge of defaulting on their mortgage loan and facing foreclosure. To avoid this you need to do two things. . . 

First, be aware that the cost of buying a house goes far beyond your monthly mortgage payments. You also need to factor in these one-off and recurring costs:

• Closing costs
• Attorney fees
• Repair/maintenance costs
• Property taxes
• Homeowners insurance
• HOA fees
• Private mortgage insurance

The other thing you need to do is avoid letting your emotions rule your decision-making. Falling in love with a home on an emotional level can keep you from objectively assessing affordability. Your agent can help you avoid this mistake and can keep you on track. To discover more about this, contact a Atlanta agent at 678-337-1165.

2. Don’t Damage Your Credit Score or Open a New Line of Credit

And when buying a house in Atlanta, you shouldn’t do anything to damage your credit score or open any new line of credit.

Remember that any time a business checks your credit score, your score takes a little hit. These little dings may not seem like much, but they matter when your score is borderline. If, for example, you are trying to get preapproved for a mortgage loan and your score barely meets the minimum requirement, every point counts. 

Similarly, don’t open a new line of credit – even if the purchases you open a line of credit for seem like necessities. For instance, you may be tempted to buy new furniture to outfit that new home you’re about to buy. But if you don’t have the cash on hand, you’re better off waiting. If you open a new line of credit, it could throw your debt-to-income ratio out of whack, and then you may not qualify for the mortgage.

3. Don’t Miss or Be Late on Payments

A related thing you shouldn’t do when buying a house in Atlanta is to miss or be late on any payments. Even an oversight here can damage your credit. So be sure to pay bills on time. 

Suppose you are paying on a current mortgage. If you miss a payment, it could have serious consequences for your credit and your ability to buy the new house. It could make you ineligible for a loan for at least a year with most lenders.

You shouldn’t even miss making payments for less significant things like utility bills. Even if you miss a payment months prior, it could still jeopardize your chance of securing financing for buying a house in Atlanta. And if a missed payment doesn’t lower your credit score below the limit, you still may have to re-apply for a mortgage loan, and the delay could cause you to miss out on the home you really want.

4. Don’t Change Jobs

When buying a house in Atlanta, you should definitely avoid changing jobs. Even a move up to a better job could hold you back. Any change in job status could cause your lender to question your financial stability and so consider you a greater risk. 

Certainly, going from, say, full-time to part-time or from salaried to commission will raise red flags with your lender. But industry pros als0 advise that while moving in the other direction to a better position shouldn’t impact your closing, it’s still better to remain in your current position.

Bonus: Don’t Fail to Work With a Atlanta Agent

A final thing you shouldn’t do is fail to work with a good local agent. Your Atlanta agent can help you avoid the missteps laid out above as well as the many others that litter the path toward buying a house. And we have the agents who can provide the critical guidance you need. Contact us today at 678-337-1165 if buying a house in Atlanta is in your sights.

from Blog – Fresh Start Home Sales https://www.freshstarthomesales.com/things-you-shouldnt-do-when-buying-a-house-in-atlanta/
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5 Solutions for Potential Atlanta Homebuyers Who are Struggling to Save a Down Payment

For most people, a big part of the American dream is still homeownership. But many people are kept from realizing that dream because of the necessary down payment. It’s a big chunk of money, and saving for a down payment is harder than ever. And that’s especially true for Millennials, who face challenges that their parent and grandparents didn’t, not least of which is their typical large student-loan debt. There are, however, some ways for first-time buyers to meet and overcome the challenges. Read on, then, to discover 5 solutions for potential Atlanta homebuyers who are struggling to save a down payment.

1. Have a Plan

Any large and difficult undertaking requires a plan, and that goes especially if you want to save a down payment for a Atlanta home. The best way to set up a down payment savings plan is to know how much you need to save – that is, how much the down payment will be – so that you’ll have a clear-cut goal to work toward. 

That doesn’t mean, however, you’ll have to save for the traditional 20% down payment. Doing so will help you avoid having to pay for private mortgage insurance, but it’s just not possible for many Atlanta home buyers today. If you take advantage of assistance programs, you can plan to save a smaller down payment. But do have a figure in mind so that you have a goal to shoot for.

The next part of your plan to save a down payment involves the time frame. How long will it take you to save the required amount? Just be realistic here, and don’t set an impossibly short time frame.

You should also consider when putting together your saving plan, where you will put the money you save. Whatever savings instrument you use, keep in mind that this isn’t an investment. You’ll draw the money out as soon as you hit your goal. But, then, if it’s too easily accessible, you may be tempted to spend some of it.

2. Freeze Spending and Cut Out the Extras

This next of our solutions for potential Atlanta homebuyers who are struggling to save a down payment may require a little sacrifice and will definitely take some discipline. But it will be worth it.

The first thing to do is implement a spending freeze so that you’ll have much more money coming in than going out, thus allowing you to increase your savings rate. Certainly, you shouldn’t make any large purchases such as a newer car, but not spending on the small things can save a lot over time. 

Besides the spending freeze, you should also cut current recurring expenses, for example:

• Cancel the gym membership you use only once or twice a month
• Cut out the $6.00 cup of coffee every morning
• Eat out only on special occasions
• Cancel the cable
• Buy generic brands when shopping

3. Use Automatic Saving

An easy way to save a down payment is by putting money into savings before you ever see it or touch it. “Whether your employer offers an automatic savings plan or you download an app to save your spare change, the more automatic you make saving, the more successful you will be. Left to your own devices to transfer money out of your checking account and into a savings vehicle, it may never happen. That dinner with friends or a new pair of shoes can easily get in the way.”

Look into setting up an automatic withdrawal from your paycheck to be automatically deposited into a savings account. Another thing you can do is to use one of the many apps that round up your purchases and deposit those few cents into a savings account – it adds up.

4. Pause Retirement Savings

You might also consider, as a temporary measure to help you save a down payment, pausing your retirement savings. Certainly, this isn’t a long-term strategy, but done for a short time, it can help you hit your down payment savings goal much sooner.

For example, if you normally put $500 of your monthly paycheck into a401(k)s, back off on that for, say, two years. At the end of those two years, you will have saved $12,000 – not counting the other contributions to your down payment savings. Then, after you hit your goal, start saving for retirement again.

5. Take Advantage of Assistance Programs

Now, as we mentioned earlier, you don’t necessarily have to save a down payment of 20% of the purchase price. There are several state and federal down payment assistance programs that will allow you to buy a Atlanta home with a much lower down payment. Here’s why . . . 

“The government wants people to own homes. To spur homeownership, local and federal agencies offer down payment assistance programs. To be eligible for these programs, buyers need to meet certain requirements that can be based on the income of the borrower, the location of the property, or the buyer’s identity as part of a particular group.” There are, for example, such programs for “veterans, first-time buyers, teachers, and firefighters.”

Find Out More About How to Save a Down Payment

These solutions for potential Atlanta homebuyers who are struggling to save a down payment will indeed work. Still, they may not work for you considering your unique circumstances. But there’s always more than one way to skin a cat. To discover more strategies to save a down payment, as well as ways to get a lower down payment, contact us today at 678-337-1165.

from Blog – Fresh Start Home Sales https://www.freshstarthomesales.com/atlanta-homebuyers-save-a-down-payment/
via https://www.freshstarthomesales.com