The steps, in order
- Free consultationWe talk budget, timeline, neighborhoods and must-haves, and I explain how the process works. No obligation.
- Get pre-approvedA lender reviews your income, credit and savings and tells you how much you can borrow. Sellers expect a pre-approval letter with every offer.
- Search and tour homesWe tour homes that fit your list. I'll point out the good and the not-so-good about each one.
- Make an offerWe decide on price, earnest money, the due diligence period and fee, and the closing date, then send a written offer.
- Due diligenceInspections, insurance quotes and repair requests. You can still walk away during this period.
- Appraisal and underwritingThe lender appraises the home and gives your file a final review.
- ClosingA final walkthrough, then you sign at the closing attorney's office and get your keys.
How much money do you need?
Down payment
- FHA loans can start at 3.5% down and are flexible on credit.
- Conventional loans can start at 3% down for some first-time buyers.
- VA loans can allow 0% down for eligible veterans and service members.
- USDA loans can allow 0% down in eligible areas outside the city.
Closing costs
Closing costs cover lender fees, the appraisal, title insurance, the closing attorney and prepaid taxes and insurance. A common rule of thumb is 2% to 5% of the purchase price. Some can be negotiated with the seller.
Earnest money and the due diligence fee
Earnest money shows the seller you're serious. It's held in escrow and credited toward your purchase at closing. The due diligence fee is paid to the seller for the right to inspect and walk away during due diligence, and is usually credited at closing too. Both amounts are negotiable.
Program rules, rates and limits change. Your lender will confirm the current numbers for your situation, and I'll connect you with lenders I trust.
Georgia-specific things to know
Down payment assistance
Georgia Dream, run by the Georgia Department of Community Affairs, helps eligible buyers with down payment and closing costs. It has income and purchase price limits and works through participating lenders.
The due diligence period
Georgia contracts use a due diligence period instead of a traditional inspection contingency. Here's how it works.
Closing attorneys
In Georgia, closings are handled by a closing attorney, who checks the title, prepares the documents and manages the funds.
Homestead exemption
Once you live in your home, file for a homestead exemption with your county to lower your property taxes. Read about the deadline.
Popular areas for first-time buyers
Some North Atlanta cities where first-time buyers often find good value and choice:
Mistakes to avoid
- Shopping for homes before you're pre-approved.
- Budgeting only for the mortgage and forgetting property taxes, insurance and HOA fees.
- Skipping the home inspection to make an offer look stronger.
- Opening new credit or making big purchases before closing. More on this.
Common questions
How much do I need for a down payment in Georgia?
It depends on the loan. FHA loans can start at 3.5% down, some conventional loans at 3%, and VA and USDA loans can allow 0% down for eligible buyers. Georgia Dream, run by the Georgia Department of Community Affairs, offers down payment assistance for buyers who meet its income and price limits.
What are closing costs, and how much are they?
Closing costs are the fees to finalize your loan and purchase, such as lender fees, the appraisal, title insurance and the closing attorney. A common rule of thumb is 2% to 5% of the price. Some of these can be negotiated with the seller.
What is the due diligence period in Georgia?
It is an agreed number of days after your offer is accepted when you can inspect the home and back out for any reason. Buyers usually pay the seller a due diligence fee for this right, which is typically credited toward the price at closing.
Who handles the closing in Georgia?
In Georgia, closings are conducted by a closing attorney. They make sure the title is clear, prepare the documents and handle the money at the closing table.
Should I apply for a homestead exemption?
Yes, if the home is your primary residence. In Georgia you generally need to own and live in the home on January 1 and file with your county by April 1 of that year. It can lower your property taxes every year.