If you’re a Georgia first time home buyer, you may be wondering what’s involved with buying a home. There are a number of steps. Long before you pick out a house or finalize the sale, you have to start preparing. Here’s a look at that process.
Deciding if it’s the right time to buy
First, you need to decide if now is the right time to buy a home. As a general rule of thumb, you shouldn’t buy a home unless you plan to stay in the area for at least five years. If you love your area and have a steady job, it may be time to buy.
However, if you’re only going to be there for a year or two, you may not want to buy. The costs associated with buying and selling a home can be significant, and ultimately, they can make buying a home for the short term more expensive than renting. That said, there are exceptions to this rule. In cases where house prices are increasing quickly, you may be fine buying and selling in a short time span.
Similarly, if you want to buy a home and turn it into an investment property, that may also work. Keep in mind however that some programs for the Georgia first time home buyer may require you to live in your home for a certain number of years. For instance, if you get a VA or an FHA loan, the home has to be your primary residence for a specified number of years.
Budgeting for the home
In addition to thinking about timing, you should also think about your budget. When you’re crunching the numbers, a mortgage calculator can give you a general estimate of your costs, but those numbers may not reflect the reality of your exact situation. Also be sure to contact a mortgage lender directly to see exactly what you need to pay based on the type of mortgage you can get.
Take into account the monthly mortgage payment and the mortgage insurance, but also think about upkeep, property taxes, and similar costs.
Checking your credit score
To get a sense of whether or not you might get approved for a mortgage, you should get a copy of your credit report. By law, the three credit reporting bureaus have to provide you with a free copy every year. Once you get it, see if there are any issues that need to be cleaned up.
For instance, if you have any small bills in collections such as old utility or cable bills that you forgot to pay, you should reach out to the collection agency and make those payments. If possible, you may also want to pay down some of your credit cards.
Gathering documents for the application
Before you start applying for your Georgia first time home buyer mortgage, you should gather the documents you need. This includes proof of income, and if you’re self-employed, it also includes profit-and-loss statements or other details from your business. On top of that, you may need tax returns from previous years and bank account records.
Now, that you have everything, it’s time to apply for your Georgia first time home buyer. Contact us at Capital Mortgage Advisors today.