5 Tips to Help You Save for a Down Payment in Atlanta in Just 6 Months

For most people, the highest hurdle in their journey toward home ownership is the down payment. And saving for a down payment often seems nearly impossible when the time frame is short, say, within a few months. But you can save for a down payment if you have a plan and take the right steps – and it doesn’t have to take years of scrimping and saving. Here are 5 tips to help you save for a down payment in Atlanta in just 6 months.

1. Determine How Much House You Can Afford and the Size of the Down Payment

Your first step to save for a down payment in Atlanta (in 6 months or any other time frame) is to figure out just how much that down payment will be. Begin this process by determining how much how you can afford, and then you’ll have a good idea of the size of the down payment you’ll need to save for.

Here’s what industry experts advise to help you do this . . . 

“Before you begin saving a down payment for a house, you first have to know how much you’ll need to save. Plan to sit down with a mortgage lender who will let you know how much of a mortgage you can qualify for. Generally speaking, your housing expense should not exceed 28% of your stable monthly income. So if your income is $5,000, you can safely allocate $1,400 of that ($5,000 x .28) to your future house payment. The $1,400 will include mortgage principal and interest, real estate taxes, private mortgage insurance (PMI), homeowners insurance, and homeowners association (HOA) dues, if any.”

But you also have to factor in the down payment in determining what you can afford. Formerly, 20% of the purchase price was the norm for a down payment, but then for many years, it was less. Now, though, more and more lenders are requiring 20% again or something very near that.

Following this calculations process will give you a good idea of what you can afford and how much down payment you’ll have to save – thus giving you a good starting point. Remember, too, that your Atlanta agent can provide some valuable assistance here. Just call 678-337-1165 to find out more.

2. Set Up and Implement a Strict Budget

The next best step to save for a down payment involves setting up and implementing a strict budget – and sticking to it. You need to control expenses each month in order to set aside money for a down payment. 

“No one wants to hear it, but having a budget (and actually sticking to it) is the key to quickly saving money for a house. This can’t be your ordinary easy to accomplish budget either. If you are saving for a house, you have to have a laser-like focus on your spending habits. Your spending budget should be bare bones. Every little bit of extra money needs to be going towards your [down payment] fund. To accomplish this step you have to really have a firm vision of your future home.”

Some effective budgeting systems include:

• Percentage-based budget
• Envelope system
• Spreadsheets

Just find the system that works best for you, and go at it full bore. You’ll be amazed at how much you can save within a few months.

3. Evaluate Your Assets

Strictly speaking, this isn’t a way to save for a down payment in Atlanta. It is, though, a good way to increase the amount of money you have for a down payment in a short time. And that is to evaluate your assets and see what you already have that can be added to your down payment money, especially if you want/need to pay 20% down.

You could, for example, liquidate any stocks or savings bonds you may have. You could also “take a loan from your retirement fund. The IRS allows you to take out a loan of up to $50,000 or 50% of your vested retirement savings, whichever is less. You then make quarterly payments back into the plan over the course of a certain term until the loan is paid off.”

But do be careful if you choose to tap into your retirement account. “If you don’t make your quarterly payment, the rest of the outstanding balance can be considered a distribution, and you would pay a 10% early withdrawal tax penalty. Additionally, if you leave a company, they have the right to immediately call the loan balance due if they want.”

4. Cut Costs . . . Ruthlessly

Similar to budgeting (but slightly different), cutting costs – ruthlessly – is another good way to save for a down payment. We all spend more than we really need to, so it’s not all that difficult to cut costs. It may be a little uncomfortable and require some sacrifices, but, remember, it will be only for a short time. And the payoff will be worth it.

“The biggest thing you have to do to save a down payment in 6 months is learning to say no. It sucks, but you need a scorched earth policy. Every single extra penny you have needs to go into your saving money for a house fund for the next six months. Literally no exceptions. Be open and honest with your family and friends and set the expectation that you’re going to be a cheapskate for the next 6 months while you save for your down payment.”

It’s even possible to make cutting spending fun by making it a challenge. And, besides, there are a lot of free alternatives out there, especially in the area of entertainment.

5. Use an Automated Savings Plan

If you, like most of us, aren’t a disciplined saver, then you should automate your savings. Set up an automated savings plan so that your down payment money goes into a dedicated savings account before you ever get your hands on it.

To save for a down payment, then, set up “some sort of payroll savings plan. Just like your 401(k) plan, you should allocate a certain percentage or dollar amount of your regular pay to go directly into a savings account or money market account dedicated to accumulating the funds for your down payment. Not only does this make the process automatic, but it also makes it invisible.”

Using an automated savings plan eliminates both the temptation and your ability to spend your down payment money before it goes into savings.

And Rely on Your Atlanta Agent

Wouldn’t it also be great if you could get a better deal on your dream home so that you don’t have to pay as much down? That’s where your Atlanta real estate agent can help. If you want to do more than just save for a down payment in Atlanta, then contact us today at 678-337-1165.

from Blog – Fresh Start Home Sales https://www.freshstarthomesales.com/save-for-a-down-payment-in-atlanta-in-just-6-months/
via https://www.freshstarthomesales.com

5 Tips for Buying a Home in Atlanta When You Are Self-Employed

Self-employment has many benefits – the ability to make your own schedule, the potential for more time off and better pay, the pleasure of doing what you love and getting paid for it, and more. But there are downsides to self-employment. The unfortunate fact for self-employed people is that it’s usually more difficult to buy a home than it is for buyers who have a steady paycheck from an employer. Read on, then, to discover 5 insider tips for buying a home in Atlanta when you are self-employed.

1. Keep Accurate Records and Get Your Paperwork in Order

If you’re planning on buying a home in Atlanta and you’re self-employed, be prepared for a lender to scrutinize your employment and income records closely and rigorously. And this means that you have to keep accurate records (and have all your documents readily available) so that you can prove to the lender that granting you a mortgage loan isn’t too great a risk.

“Keeping great records, tracking your expenses and income, and having an easy-to-follow profit and loss statement can pay dividends when it comes time to show a lender you’ll be able to take on a loan… If you don’t keep great records from the get-go, it might be tricky to have only a few months of detailed information to show to your lender and only rough estimates of prior years. It will most certainly be a headache to go back and get everything in order.”

And the sooner you start, the better. “If you want to buy a house in the future, organize your business records now. Some of the best practices for self-employed people looking to buy a house start years before shopping for a loan.” If you’re unsure where to begin or exactly what documents you’ll need, contact a Atlanta agent at 678-337-1165 for some guidance.

2. Take Care of Your Credit

And, of course, you’ll need a good credit history and healthy credit score when buying a home in Atlanta, sometimes better than those who aren’t self-employed are required to have.  “[L]enders scrutinize a self-employed person’s credit history and ability to bring in revenue even more closely.” In addition, “you should expect to have a review at application, plus a ‘check-in’ right before you close to make sure you are still in business.”

So what does this mean in practical terms?

• Preferably a credit score in the 700s or a score in the 600s with an excellent history of steady, good income and timely payments
• Little existing debt and paid-down or paid-off credit cards
• A substantial down payment saved

Start paying down debt, improving the stability of your income, and improving your credit score.

3. Start Early

As we mentioned above, buying a home in Atlanta when you are self-employed demands that you start the process early. 

Industry pros recommend that even if you’re only at the thinking-about-buying-a-home stage, you should still “find a mortgage lender and discuss plans now… If you want to buy a home in a year or two, don’t wait a year or two to talk to a lender. Start a conversation now. Most of the time, lenders are happy to sit down and talk about the mortgage lending process. They can explain the do’s and don’ts. Most importantly, they can help set you up a game plan.”

Your goal should be to “form a relationship now and start following the lender’s advice.” That way you will already have done much of the preliminary work “like having the proper paperwork, a solid credit score, and a healthy down payment. Meanwhile, if you’ve stayed in touch, your lender will know you and understand your self-employment situation, and your odds of being approved should be a lot higher.”

4. Shop for the Best Mortgage and Rates

But don’t just settle for the first lender that seems likely to grant you a mortgage loan. Rather, you should shop lenders for the best terms and the best rates when buying a home in Atlanta.

“A good starting point is to see what the current mortgage rates advertised by major financial institutions are. With this knowledge in your back pocket, shop around. You can either do this yourself by going to lenders individually (just beware, each time a lender pulls your credit, your credit score will get dinged). Or you can use a mortgage broker to shop around for you.”

Getting a mortgage may be more difficult when you’re self-employed, but you still need to seek out the one that works best for you.

5. Be Patient

Buying a home in Atlanta when you are self-employed also requires (for the reasons laid out above) that you be patient and persistent.

“The biggest barrier to entry when you’re self-employed and looking to purchase a home is the fact that most lenders will want to see two years’ worth of tax returns that show self-employment income… That’s a problem. If you’ve only been self-employed for a year or six months, for example. You could have strong income and even earnings projections that show you only expect to make more in the future – but mortgage lenders base their underwriting process on established proof and history of earnings.”

As a self-employed borrower, you’ll encounter more rigorous lending requirements, so it will pay to be patient and persistent and do what the lender asks of you.

Use a Local Agent for Buying a Home in Atlanta

Finally, because the challenges are greater for self-employed people, you’ll likely need an experienced Atlanta real estate agent in your corner. A good agent will know exactly what you’re up against as a self-employed buyer and can help you navigate the process and overcome the challenges. So if you are self-employed and thinking of buying a home in Atlanta, contact us today at 678-337-1165.

from Blog – Fresh Start Home Sales https://www.freshstarthomesales.com/buying-a-home-in-atlanta-when-you-are-self-employed/
via https://www.freshstarthomesales.com

5 Costs to Negotiate When Buying a House in Atlanta

Buying a house will inevitably involve a lot of negotiating, whether good-natured give-and-take or aggressive jockeying for the best position. Too many buyers, though, think that once they’ve settled on a price, the negotiations are over. But that’s pretty far from the actual state of affairs. There are in fact many other negotiation points. So let’s take a look at the top 5 costs to negotiate when buying a house in Atlanta.

1. The Price

The thing that first comes to mind when you mention negotiating is, of course, the price. This is the primary concern for both buyers and sellers, and each has a goal that runs counter to the others. Further, when buying a house in Atlanta, you’ll find that this is the place where deals most often fall apart.

Buyers, naturally, want to pay the least amount possible, and sellers, of course, want to get the highest price possible. And that’s exactly why it can be such a contentious point in the negotiations. Typically, sellers must get a certain amount in order to pay off the mortgage. Buyers, however, can spread their financial burden over the life of the mortgage, which often gives them more flexibility in negotiating price.

Since this is the largest and most critical of the costs to negotiate when buying a house in Atlanta, most buyers are better off relying on the negotiating expertise of their Atlanta agent. Find out how an agent can help you negotiate the best price by calling 678-337-1165.

2. Contingencies

Next among the top things to negotiate when buying a house in Atlanta are the contingencies. In general, the fewer the contingencies in an offer, the more appealing it will be to the seller because there will be fewer chances for the deal to fall through.

Contingencies are contract clauses stipulating that if certain conditions aren’t met – for example, sale of the buyer’s current home or no major issues discovered by the inspection – the buyer can walk away with the contract dissolved. As a buyer, then, you’ll have more negotiating leverage if you’re willing to be flexible when it comes to contingencies.

Still, contingencies are there to protect you as the buyer. And while they’re not strictly a cost, they can profoundly impact the cost of buying a house in Atlanta. And that’s why it’s best to rely on your Atlanta agent’s skill and experience when negotiating contingencies.

3. Closing Costs

Closing costs are an inevitable part of buying a house in Atlanta, but many buyers, especially first-time buyers, are often taken off guard by the extent and amount of these costs. 

Typically, closing costs amount to between 2% to 5% of the purchase price – a large chunk of change, indeed. You can, however, negotiate for the seller to pay some or all of the closing costs.

“If you’re in a buyer’s market, and the seller is anxious to move on from the property, you might be able to have the sellers pick up some or all of the closing costs. This puts extra cash in your pocket that you can redirect toward renovations, big-ticket repairs, or updates, but you can also request a closing credit for specific changes made after purchase. For example, the property needs the driveway sealed or the new owner would like the deck refinished.”

It can pay handsomely to skillfully negotiate a partial or full payment of closing costs. So be sure to contact your Atlanta agent to find out how to do this.

4. Home Warranty 

Another important cost to negotiate when buying a house in Atlanta concerns the home warranty. Industry pros recommend that you always try to get a home warranty.

“Always, always ask for a home warranty . . . It’s very common for a seller to pay this expense up front. The seller pays the premium at closing, usually around $450-600, and then the new homeowner is responsible for the deductible with any claim made.” This warranty will cover the cost of “the repair of key items like heating and air systems, plumbing or appliances” if the inspection determines that these repairs need to be made.

5. Things That Stay With the House

An indirect cost that you should also negotiate when buying a house in Atlanta has to do with items that will stay with the house. 

“Realtors aren’t kidding when they say you can negotiate anything as a buyer, like furniture that perfectly fits a room layout, light fixtures, . . .appliances and even lawn care items. Sometimes sellers say yes to such requests because they want to make a home more appealing to the buyer, they don’t want to transport certain items to a new location, or they rarely use it. Although furniture usually comes as a ‘gift’ from the homeowner, it can go a long way for first-time buyers who may need to furnish an entire home right after spending most of their savings on the purchase . . .Sellers will often leave patio items, air filters – all things that can save a buyer money while they recuperate from the purchase.”

Winning at Negotiating When Buying a House in Atlanta

Skillfully negotiating these costs can wind up saving you a substantial amount of money. Unfortunately, most buyers don’t possess the negotiating expertise to get the best deal. But that’s where your Atlanta real estate agent can help you out. So if you’re buying a house in Atlanta and also want to negotiate the best deal possible, contact us today at 678-337-1165.

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

5 Signs of Fraud When Buying a House in Atlanta

You’ve probably spent years working hard, building your credit, and crimping and saving to come up with a down payment. And now – finally! – you’re about to purchase that home you’ve long been dreaming about. The last thing you want, then, is to become a victim of fraud when buying a house. Unfortunately, it’s more common and easier to fall prey to than you may think. Every year, thousands of homebuyers are reported victims of fraud, and many others never report it because they are too embarrassed. To help you avoid becoming a victim, we offer these 5 signs of fraud when buying a house in Atlanta.

1. Refusal to Meet Face to Face

Today, especially since the advent of COVID-19, a lot of business is conducted remotely and online. But when you’re buying a house in Atlanta and getting ready to hand over tens of thousands or maybe hundreds of thousands of dollars, the seller should be willing to meet with you face to face. A refusal to do so could be a sign of fraud.

“[N]neglecting to meet the seller or real estate agent in charge of selling the property in person, can be a huge mistake. If they’re always saying that they’re too busy to meet up, cancel on you at the last minute, or tell you they prefer doing business on another platform, be very wary. It’s likely that they aren’t who they say they are, and they want to scam you out of your hard-earned money.”

2. Refusal to Tour the House With You

Similarly, if the seller or her agent refuses to tour the house with you, lookout. This may not actually be a sign of fraud – people are, after all, extremely busy – but you should be on your toes if it does happen when buying a house in Atlanta.

According to industry pros, a seller’s refusal to show you the property herself should at least make you uncomfortable. “This is because it may mean that they’re not the ones in charge of selling the place, or that the property isn’t even [for] sale to begin with. If the seller recommends that you visit the property on your own, stay on high alert. Make sure that they take you and give you a tour of the place, so you can inspect the property and guarantee that the seller is telling the truth.”

3. Cover-Ups

Another sign of fraud when buying a house in Atlanta that should put you on high alert is a cosmetic cover-up of a major problem. An example of this would be repainting or drywall repair to hide or disguise water damage, which often means severe and toxic mold/mildew problems.

Your best bet to avoid falling prey to such cover-up is to find and hire a trusted, reputable inspector who can determine whether cosmetic fixes are hiding any underlying issues. Certainly, you’ll want to get references, but your Atlanta agent can be a great resource for finding a top-notch inspector. To find out more, just call 678-337-1165.

4. Indications of Wire Fraud

And then there’s the much too common wire fraud. So when buying a house in Atlanta beware of any indications that wire fraud is being attempted. It works like this . . . 

“You get an email, phone call, or text from someone purporting to be from the title or escrow company with instructions on where to wire your escrow funds. Fraudsters set up fake websites that appear similar to the title or lending company you’re working with, making it seem like the real deal. Scammers use spoofing tactics to make phone numbers, websites, and email addresses appear familiar, but one number or letter is off – an easy thing to miss at first glance.”

So the unsuspecting buyer follows the directions and wires the money, assuming all is well. But the buyer has in fact just become a victim of escrow wire fraud. The fraudsters/scammers make off with the money, and the defrauded buyer has little if any recourse. 

If you suspect this kind of fraud, call your lender to make sure the wiring instructions are legit. Your Atlanta agent will also be glad to provide any help you may need.

5. High-Pressure Tactics

A final, and often fairly obvious, sign of fraud when buying a house in Atlanta is high-pressure sales. The seller or agent (or both) may be the source of this. But if they pressure you too much or are too insistent, they’re likely hiding something. 

You should see “flashing big, yellow warning signs all over the place is if the seller is pressuring you too much to take their deal. A lot of times, real estate agents work on commission, which is why they may be eager for you to finalize the sale. However, if they’re being a little bit too insistent (for example, if they tell you to buy now to get a better price, or they warn you that there are other people ready to buy), you should walk away.”

Best Way to Avoid Fraud When Buying a House in Atlanta

Being armed with this knowledge can go a long way toward preventing you from becoming a victim of fraud. Still, there’s something more you can and should do. And that is to work with an experienced Atlanta real estate agent. Your agent will know about all the scams and signs of fraud out there and can help steer you away from shady deals. Don’t take a chance when buying a house in Atlanta: contact us today at 678-337-1165.

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

5 Things to Pay Attention to When Choosing Your New Atlanta Neighborhood

Buying the perfect house, your dream home, is as much about choosing the right neighborhood as it is about selecting the right house. For you are, after all, not just buying a home, but also buying into a neighborhood because it’s the area where you’ll live for many years to come. But you do need to know what to look for in a neighborhood. So check out these 5 things to pay attention to when choosing your new Atlanta neighborhood.

1. Crime Rates

Of course, you’ll want to check out the crime rates in any Atlanta neighborhood you’re considering. This is a top concern for almost all home buyers because we all want our families to be safe and property values to stay in good shape.

Sometimes, though, getting the real skinny on crime rates can be a bit of a challenge. Here’s what you can do:

• Talk to local law enforcement agencies.
• Talk to neighborhood residents (the people who really know what goes on in the neighborhood).
• Check websites such as CrimeReports and SpotCrime.
• Check the National Sex Offender Registry.

Also, be sure to talk to a Atlanta real estate agent. A local agent will have the lowdown on various neighborhoods in the area. Just call 678-337-1165.

2. Quality of Schools

The quality of a neighborhood is closely tied to the quality of the schools. Even if you don’t have school-aged children (or any kids), it still matters.

The school quality has a bearing on the resale value of your home, as well as how much it will appreciate. Generally, better schools mean better property values, which means that a home in that Atlanta neighborhood will be a good investment.

3. Lifestyle Suitability

You should also pay close attention to whether a particular Atlanta neighborhood will fit well with your lifestyle. 

For example, are you an empty-nester looking for a quiet, slow-paced neighborhood? Or is yours a family with small children? In that case, you’ll want a neighborhood with plenty of parks and open spaces and family eateries nearby.

Of course, your Atlanta agent will be your best resource for finding out about a neighborhood’s suitability. But you can also peruse neighborhood Facebook groups and websites like Nextdoor and WalkScore.

4. Pride of Ownership

For most buyers, a good Atlanta neighborhood is one in which the residents are deeply invested and where pride of ownership shows. So be sure to pay attention to whether you see signs that residents truly care about the appearance of their homes and the quality of the neighborhood.

Is there an HOA? If so, check out their guidelines. Also, take the time to walk around the neighborhood, observing the homes and chatting with people. And, as we’ve mentioned before, talk to your agent – she’ll have a good handle on this.

5. Proximity of Emergency Services

We hope you never have any medical or other emergencies, but they do happen. So you also need to make sure that a prospective Atlanta neighborhood has all the necessary emergency services nearby. 

Far-flung suburbs are often quite a distance from these services, so keep an eye out for, say, firehouses, police stations, urgent care centers, and so on. You want to be aware of these and know they are close enough before an emergency strikes.

Your Atlanta Agent Knows . . . 

You may find, though, that you just don’t have the time to thoroughly investigate a neighborhood, especially if you live in another town, county, or state. But that’s what your Atlanta agent is for. Your agent knows the local markets and the personality of specific neighborhoods. If you really want to know what a Atlanta neighborhood is like, contact us today at 678-337-1165.

from Blog – Fresh Start Home Sales https://www.freshstarthomesales.com/choosing-your-new-atlanta-neighborhood/
via https://www.freshstarthomesales.com