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New Home Buyer’s Guide.

Everything you need to know from credit score to closing day — written for first-time and move-up buyers in the Atlanta Metro.

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Step 01

Know your numbers before you look at a single home.

The biggest mistake buyers make is falling in love with a home before they understand what they can actually afford. Getting your numbers right first saves you time, stress, and heartbreak.

Credit Score Ranges

760+Excellent — best rates available
700–759Good — competitive rates
640–699Fair — most loans still available
580–639FHA possible — conventional harder

The 28/36 Budget Rule

Lenders want your housing costs to be no more than 28% of gross monthly income and total debt (housing + car + student loans, etc.) to be no more than 36%.

Example: If you earn $8,000/month gross, your max housing payment is $2,240 and max total debt is $2,880.

What affects your credit score: Payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%), credit mix (10%). Don’t open new accounts or make large purchases during the home buying process — it can lower your score mid-transaction.

Step 02

Get pre-approved — not just pre-qualified.

Pre-qualification is an informal estimate. Pre-approval is a verified review of your income, assets, and credit. In Atlanta’s competitive market, sellers frequently won’t entertain an offer without it.

Loan Types Compared

Conventional
3–20% down, best rates for 740+ credit, no mortgage insurance with 20% down
FHA
3.5% down with 580+ score, more flexible debt ratios, requires mortgage insurance
VA
0% down for eligible veterans/active duty, no PMI, competitive rates
USDA
0% down in eligible rural areas (some Atlanta suburbs qualify), income limits apply

Documents You’ll Need

  • Last 2 years of W-2s and tax returns
  • Last 30 days of pay stubs
  • Last 2–3 months of bank statements
  • Proof of any other income (rental, alimony, etc.)
  • Government-issued ID
  • Social Security number
  • If self-employed: 2 years of business tax returns + P&L
Step 03

Define your search: needs vs. wants.

Being clear about what you actually need vs. what would be nice to have is what separates buyers who close quickly from buyers who spin their wheels for months.

Needs (Non-Negotiables)

These are the things you cannot compromise on. Write them down before you start looking.

  • Number of bedrooms and bathrooms
  • School district
  • Max commute distance/time
  • Garage (1-car vs. 2-car)
  • Single-story vs. two-story
  • Minimum square footage

New Construction vs. Resale

New Construction Pros
Builder warranty, modern finishes, energy efficiency, customize selections
New Construction Cons
Longer wait time, builder-weighted contracts, less negotiation on price
Resale Pros
Established neighborhoods, mature trees/landscaping, faster closing
Resale Cons
Older systems (roof, HVAC, plumbing), less negotiation leverage post-inspection
Step 04

Making an offer that wins.

In the Atlanta Metro, especially in Buford, Fairburn, and South Fulton, well-priced homes move fast. Knowing how to structure a strong offer is the difference between getting the home and losing it.

Key Offer Components

  • Purchase price — based on comps, not list price
  • Earnest money — typically 1–3% of purchase price
  • Due diligence period — 7–14 days in GA (shorter = stronger)
  • Financing contingency — protects you if loan falls through
  • Appraisal contingency — protects you if home appraises low
  • Closing timeline — 21–45 days is standard

Multiple Offer Strategies

  • Escalation clause — automatically beat competing offers up to a cap
  • Larger earnest money deposit signals serious intent
  • Shorter due diligence period (if you’re confident in the home)
  • Pre-inspection before offering on competitive homes
  • Personal letter from buyer (allowed in Georgia)
  • Flexible closing date to accommodate the seller

Georgia-specific: Georgia uses a binding due diligence period. During this window, you can back out for any reason and get your earnest money back. After it expires, you’re committed unless other contingencies apply.

Step 05

Due diligence: what happens between offer and close.

This is where deals fall apart — or where buyers discover expensive problems they can negotiate before closing. Don’t skip or rush this phase.

01

General Home Inspection

A licensed inspector examines the structure, roof, HVAC, electrical, plumbing, and more. Budget $350–$600 for a standard inspection. This is not optional.

02

Specialized Inspections

Depending on the property: termite/WDO inspection (required by most lenders in Georgia), radon test, sewer scope, pool inspection, chimney inspection. Ask your inspector what’s recommended.

03

Appraisal

Ordered by your lender to confirm the home’s value supports the loan amount. If the home appraises below the purchase price, you’ll need to renegotiate, bring extra cash to closing, or walk away.

04

Title Search

Your attorney confirms the seller has clear ownership and there are no liens, judgments, or encumbrances on the property. In Georgia, a real estate attorney handles closing (not a title company).

Step 06

Closing day — what to expect and what it costs.

Closing day is the finish line. Know what’s coming so there are no surprises at the table.

Typical Closing Costs (Buyer)

Lender origination fees0.5–1%
Title insurance (lender’s)$500–$1,500
Attorney fees (GA)$500–$900
Prepaid insurance (1 year)$1,000–$3,000
Prepaid property taxesProrated
Total estimate2–5% of loan

What to Bring to Closing

  • Government-issued photo ID
  • Certified funds or wire for closing costs (no personal checks)
  • Proof of homeowners insurance
  • Any documents your lender or attorney requested
  • Your checkbook (just in case of minor adjustments)

Final walkthrough: Schedule 24–48 hours before closing to verify the home is in the agreed-upon condition. Don’t skip this.

Ready to start your search?

Tell me what you’re looking for — price range, area, must-haves. I’ll match you to listings that fit, including off-market properties you won’t find online.

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