Home Buyer Frequently Asked Questions
That depends on the loan product. Typically, you want your credit score to be at a minimum of 580 to qualify for an FHA loan.
Yes, there are programs here in Georgia that will help you buy a home. The most popular one is the Georgia Dream Homeownership Program. There's also:
- Dekalb Firt-Time Homebuyers Assistance Program
- Gwinnett Homestretch Down Payment Assistance
- Fulton County HOP (Home Ownership Program)
- US Dept. of Housing and Urban Development
- Chenoa Fund
Each one of these programs do have income limitations and other requirements. For example, you may need to take a home buyer education course. For more information about these programs, click here to contact us or give us a call at 678-695-6990
Lenders typically need you to prove your income and identity. They do that by asking you for the following documents:
- Copy of your driver's license
- Copy of your SSN card
- Last two paystubs
- Last two months bank statements
- Last two years W2
There are many types of different loans. You can discuss what loan product meets your needs with your Loan Officer.
- Conventional Loan: Conventional loans can be either fixed rate or have adjustable rates meaning that the rate can fluctuate based on the market over time. Typically conventional loans are used when borrowers don't qualify for other loan types. For example, if you are buying a second home, then you will need to use a conventional loan. Conventional loans also have a higher down payment requirement of 10% or 20%. Freddie Mac has a conventional loan product called the Home Possible Mortgage that has a 3% down payment option.
- FHA Loan: These are the most common loans for first-time home buyers. This program allows you to make a low down payment of 3.5% but can be used in conjunction with a downpayment assistance program.
- VA Loan: These loans are reserved for military service members, active or not, and their families. Borrowers can receive 100% financing for the purchase of their home. A letter of eligibility must be received from your local VA office.
- USDA Loan: These loans are offered by the US Dept of Agriculture which promotes homeownership in rural areas. The USDA provides an eligibility map on their website. You can check the area that you are interested in on the map to see if you qualify for this financing.
Contact us for more information about these loans or for lending institution referrals.
Typically, a first-time homebuyer is someone who has not purchased a home within the last three years.
If you don't have enough money to make the down payment for your new home then one of your relatives can provide you with a gift but they must give you a letter stating that the gift is just that and not a loan. Contact your loan officer for details about a gift letter.
A home inspection is a must. It tells you if there are any problems with the home that you want to buy. The cost for a home inspection is based on the square footage of the home being inspected but usually is $400 or less.
A home inspector will visit the property then provide you with a report on their findings. You can be present during the home inspection or wait to receive the report. Based on what the home inspector finds, we then go back to the seller and request repairs or a reduced sales price.
Our firm has a Home Buyer Inspection Rebate program.
Appraisals tell your lender how much the home that you are buying is worth. The home needs to appraise for at least the agreed purchase contract price. If it is lower than that amount, then you can negotiate with the seller to reduce the sales price.
Appraisals average in the $500 range. They can be due at the time of the appraisal or wrapped in with your closing costs. Contact your lender for details.
First-time home buyers who are using an FHA loan to buy their homes qualify for our Home Buyer Inspection Rebate Program. Buyers are considered "first-time" if they have not purchased a home wihtin the last three years. Click here for more information about this program.
A home warranty is different from home insurance in that it covers the systems of your house. Home insurance covers catastrophic events that happen to your home. For example, if a tree falls into your home, then your insurance company will pay. If a pipe bursts in your home then your insurance company will pay.
Your insurance company will not pay for your refrigerator that has malfunctioned. A home warranty would pay for this repair and much more. Contact us for more information about home warranties.
WHAT OUR CUSTUMERS ARE SAYING
Lisa & Max R.
"When we bought our first home, we didn't have a lot of money. We needed all the help that we could get. Woodland Realty helped us find a lender and the down payment assistance that we needed to buy our first home!"
"Initially, I had a mountain of issues that prevented me from buying a home. Woodland Realty provided me with free suggestions. I was able to enroll in a program where my credit score didn't matter and now I own a beautiful home!"
Isaac & Juan
"Having a guide to walk us through each step of the way in buying our first home was the most important thing for us. Woodland Realty provided that and more!"