Why should you buy a home?
Other than the obvious - it will be yours...when you own your home, you can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes. This will save you a lot each year, because the interest you pay will make up most of your monthly payment for most of the years of your mortgage. You can also deduct the property taxes you pay as a homeowner. In addition, the value of your home may go up over the years.
Can you buy a home if you have bad credit or limited cash for a down payment?
You may be a good candidate for one of the mortgage programs below. Or contact one of the HUD-funded housing counseling agencies that can help you sort through your options.
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FHA down payment assistance grants - Down payment assistance and community redevelopment programs offer affordable housing opportunities to first-time homebuyers, low-income and moderate-income individuals and families who wish to achieve homeownership. |
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The Georgia Dream Homeownership Program by the Geogia Department of Community Affairs, makes purchasing a home more affordable for low-to-moderate income families and individuals by offering fixed, low-interest rate mortgages loans. |
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Gwinnett County HOMEStretch downpayment assistance program - funded by HUD’s HOME Investment Partnership Program including funds from the American Dream Downpayment Initiative [ADDI] and is administered by the Gwinnett County Community Development Program. |
Should you have a real estate agent?
YES! A good real estate professional can guide you through the entire process and make the experience much easier. A real estate agent like Lynn Ashley is well-acquainted with all the important things you'll want to know about a neighborhood you may be considering...the quality of schools, the number of children in the area, the safety of the neighborhood, traffic volume, and more. She will help you figure the price range you can afford and search the multiple listing services for homes you'll want to see. With immediate access to homes as soon as they're put on the market, she can save you hours of wasted driving-around time.
When it's time to make an offer on a home, she can point out ways to structure your deal to save you money. She will explain the advantages and disadvantages of different types of mortgages, guide you through the paperwork, and be there to hold your hand and answer last-minute questions when you sign the final papers at closing. And you don't have to pay her anything! The payment comes from the home seller - not from the buyer. Visit our Buyer Resources page for more information on the buying process
How much money will you need to buy a home upfront?
In general, you need to come up with enough money to cover three costs: earnest money - the deposit you make on the home when you submit your offer, to prove to the seller that you are serious about wanting to buy the house; the down payment, a percentage of the cost of the home that you must pay when you go to settlement; and closing costs, the costs associated with processing the paperwork to buy a house.
How do I know if I can get a loan and what is the process?
It is a good idea go to a lender and apply for a mortgage before you actually start looking for a home. Then you'll know exactly how much you can afford to spend, and it will speed the process once you do find the home of your dreams. You can also use our mortgage calculator to get an idea of the monthly payment to determine if a particular priced home is in your range. Shopping for a loan is like shopping for any other large purchase: you can save money if you take some time to look around for the best prices. Different lenders can offer quite different interest rates and loan fees; and as you know, a lower interest rate can make a big difference in how much home you can afford. Talk with several lenders before you decide. Most lenders need 3-6 weeks for the whole loan approval process.
For more information visit HUD's 100 questions and answers to buying a home
