Atlanta Real Estate FAQs

The answers to frequently asked questions (FAQ) about Atlanta real estate can help you to make a better real estate deal. You can also approach a real estate organization or agent in Atlanta to clarify your points.

How much money is required to buy an average home in Atlanta?

This depends upon a number of factors such as the size and location of the home, the comforts you are looking for, and the procedural fees.

Why do Atlanta home prices go up?

High employment rates and the growing population have raised Atlanta real estate prices. Atlanta’s rapid all-round growth contributes significantly to the price hike as well.

What are closing costs?

Various expenses associated with selling and buying of a home, paid at the closing of the mortgage process, are collectively referred to as closing costs. For sellers, closing costs can be approximately 9.5% of the total price of the property.

What are the requirements for Real Estate Settlement Procedures Act (RESPA)?

This is a consumer-protection statute and requires that certain information about property loans be revealed, such as estimated closing costs and Annual Percentage Rate (APR).

What is the current trend in the Atlanta condominium market?

There has been an explosion in Atlanta’s condo and loft market over the past few years. Ranging from renovated warehouses and factories to high-rise condos with many amenities, Atlanta has a buzzing condo and loft market.

What is special about Atlanta’s neighborhoods?

Atlanta’s neighborhoods have some historic importance. You find Jewish communities and a historical African-American population in the neighborhoods. Most neighborhoods have civic associations that work for the welfare of the local community.

Atlanta Mortgage Rates

Based on interest rates, Atlanta Mortgages can be divided into two types namely fixed rate and adjustable rate loan. In the case of a fixed rate loan, a monthly payment including the principal and the interest will never change for the duration of the loan.

These types of mortgages are available for different maturity periods ranging from biweekly to 30-year. The rate of interest also increases with the increase in the maturity period of the loan.

Adjustable rate mortgages offer an introductory rate of interest in the beginning for a fixed time period and later an adjusted rate based on the market index rate. The rates of interest of these mortgages fluctuate with market rates of interest on securities like the six-month Certificate of Deposit (CD), the one-year Treasury Security or others. Adjustable rate mortgages have a lifetime cap which protects the borrower from the monthly payment going too high too fast. The interest payments under adjustable rate mortgages are lower than those under fixed rate mortgages.

In Atlanta, mortgage rates differ throughout the city-and throughout Georgia. Generally rates range from 4 to 6 percent. For instance, the 30-year mortgage holds an interest rate of 5.3 percent in the case of Metro Atlanta’s best home mortgages. A borrower can find plenty of useful information via online research directories.

A mortgage calculator gives you an idea as to how much a borrower has to pay every month for a home loan. Information required for using the mortgage calculator are the amount of the loan, the expected interest rate, which is an estimate based on current interest rates, and the period of loan.

5 Things To Consider Before Buying A Home

1) Know your credit.

Before you start your home search, it is a good idea to order your credit report and review it for accuracies. If you decide to pay off some items on your credit, it’s smart to pay off the smallest balances first.

2) Know how much home you can afford.

Especially on your first home, don’t try to overdue it and buy the biggest or fanciest home. Make sure that your monthly mortgage payment is affordable given your monthly income.

3) Do your research.

Research various loan programs, your local real estate market, home basics, and mortgage lenders. Make sure you understand these concepts.

4) Get pre-approved.

Once you’re ready to buy and are knowledgeable enough to make a good buying decision, shop around for the best loan that fits your particular needs. Don’t just consider the quoted interest rate; also consider closing costs and the terms.

5) Be smart in your house hunt.

Don’t get carried away by the asthetics of the home, especially if you’re a first-time homebuyer. However, look at other factors that may affect your property’s value and future selling attractiveness. Also pay attention to a good, growing neighborhood, school districts, local tax rates, and flood zones.

Benefits of Home Ownership

Of course, it’s clear that the benefits of buying a home far outweighs renting. If you still aren’t convinced that buying a home is one of the best decisions you can make towards your financial future, here are some reasons to home ownership.

1) Pride. It feels good to know that you own your home.

2) Renting wastes your money; owning makes money and helps to minimize your taxes. Consider this, when you rent, you help pay someone else’s mortgage.

3) You can realize tax benefits when you own a home and can claim the mortgage and interest payments on your taxes.

4) The appreciation and equity in your home can be a profit for you when it’s time to sell.

5) Owning a home makes you attractive for equity loans that is borrowed against the equity in your home and can be used for a variety of reasons.

6) Homeownership helps to foster better neighborhoods because homeowners are more likely to be concerned for their neighborhood’s vitality since it directly affects their property’s value.

7) Homeownership helps to build your financial credibility.