Recent reports suggest that the mortgage rates in Atlanta are at their all time lows. Apart from the mortgage rates, the home prices may not be at their rock bottom level but are still at a very low level. In fact it has been seen that in most neighborhoods in Atlanta, you’ll be able to buy a new house at a cost that is much less than what you could need in building a new one. This is the reason why 2011 is being called as the year of the first time home buyers in Atlanta. If your new year’s resolution is to get a new house in Atlanta, act on it soon and start getting your mortgage consultation in no time. Remember asking yourself “how much can I borrow for a mortgage” before settling on the loan amount so that you can easily repay the amount without burning a hole in your wallet.
Recently, there has been a perfect storm in the Atlanta real estate market where the Metro Atlanta real estate prices are very depressing from their highs and mortgage rates are also at their record low level. The rents in various areas of Atlanta are stable and rising and are also predicted to rise on an average of 15% over the next couple of years. Doesn’t this seem to be good news for all the first-time home buyers in Atlanta? They can now buy a house for less than what they pay on rent. Therefore, if you’re not purchasing a home in Atlanta due to some fear of the unknown, you’re perhaps missing an opportunity to save your dollars.
New rules in store for the first time home buyers in Atlanta – What are they?
The first time home buyers have been having a good time in 2011 as the real estate market is going through a depressing state. However, a series of new rules and policies have changed this particular landscape thereby making home buying for the first time home buyers harder and dearer. Few years back, first time home buyers in Atlanta accounted for 40% of their home sales but this has been down to 28% as they’re now confronting rising costs, fees. Have a look at some changes within the industry.
* You need to put more money down: As per the new rules, homebuyers have to pay more money as down payment on the home mortgage loans. The mortgage insurance fees on the government insured mortgage loans that require just 3.5% of the loan amount as down payment have doubled to up to 1.15%. This means that on a $300,000 mortgage loan, a buyer has to pay $30,000 more in fees. This will make the home buying process a little tougher for the Atlanta first time home buyers.
* You need to stay at least for a decade: The days of flip and move have gone and now real estate investment has become a long term investment option. As the mortgage fees have raised, the buyers have to recoup more money and this will take a longer time. For the first time home buyers, this means that they need to avoid homes that require renovations. A bigger down payment can still cushion the blow for such buyers.
* Brace for a healthy competition: With the real estate downturn, all the desperate sellers were eager to accept any offer. Over the last couple of years, the investors and the downsizing retirees have created a large impact on the market as they started paying with cash. Therefore, if you have to stand out in the crowd, you may need to present an offer with contingencies.
Therefore if you’re a first time home buyer in Atlanta, you need not worry as 2011 is going to have some headwinds and some tailwinds for you. Just make sure that you ask yourself “how much can I borrow for a mortgage” before pouncing on a home mortgage loan for getting yourself a house.