Atlanta Home Buyers

What Every Buyer Should Know Before Purchasing

1. Property taxes and qualified interest are deductible on an individual’s federal income tax return.
2. Often, a home is the largest asset an individual has and is considered one of the most valuable investments available.
3. A portion of each amortized mortgage payment goes to principal which is an investment.
4. A home is one of the few investments that you can enjoy by living in it.
5. A REALTOR® can usually show you any home whether it is listed with a company, a builder, or even a For Sale By Owner home.
6. Working through a REALTOR® to purchase a For Sale By Owner home can be very advantageous because someone is looking out for your best interests.
7. Your Real Estate professional can provide you with a list of items you’ll need to complete your loan application so you’ll be prepared.
8. A homeowner can exclude up to $500,000 of capital gain tax if married and filing jointly or up to $250,000 if single or filing separately. The home must have been the taxpayer’s principal residence for two of the previous five years.
9. Beginning with May 07, 1997, there is no longer a requirement to purchase another home more expensive than the one sold. Homeowners are free to buy up or down with no tax consequence assuming their gain is less than the allowable amounts.
10. Ask the REALTOR® if they are familiar with the neighborhoods where you want to live.
11. Ask the Real Estate professional whom he/she is representing in the transaction.
12. Ask the Real Estate professional what he/she will do to keep you informed.
13. Your Real Estate professional should provide you with the highest level of service and advice.

Budget For These Out Of Pocket Expenses:

1. Earnest Money – minimum of $1,000. Builders for new construction may require more.
2. Down Payment – 3-5% up to 20%+. Down payment amount can make the difference between a conforming or non-conforming loan. Financing a higher loan amount can result in a non-conforming loan, which generally has higher interest rates and pre-payment penalties.
3. Loan Application Fee – usually includes appraisal fee, amount varies by lender/loan package.
4. Appraisal – Usually $275 to $500+ depending on property location, size, amenities and use.
5. Inspection – $250 to $500+ depending on property location, size, amenities and use.
6. Taxes & Escrows – Most lenders require 14 months of escrow for taxes and mortgage (lender’s) insurance.
7. Homeowner’s Insurance – On the dwelling itself. Buyer must have insurance effective the day of closing.

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