Things may have been worse in Atlanta, Georgia compared to the national realty market, but the pace has slowed. This slow pace of the realty market means prospective buyers can take their time choosing a home. The cut and thrust of the realty bubble days has well and truly burst, but that can only be good news for the buyer.
Atlanta’s hardest-hit neighborhoods have seen housing prices skyrocket, some up as much as 20% in one year, and are now simply recovering. Most of Atlanta’s prices are strong and Atlanta has not seen the dramatic changes in housing prices that it has experienced elsewhere.
However, on the one hand, Atlanta is facing the same fate as the rest of the nation, and this is because homes are being stockpiled on the market due to slow home sales; The item is large.
If you’re a prospective buyer, you now have the highest selection, lowest interest rates and eager sellers, which means you have the perfect climate to negotiate the price or terms of the sale.
Since the government has confirmed that subprime loans are off the menu, you should be able to negotiate a fair loan if you have a good credit rating. One way to be sure to keep your finances on track for you is to sign up for a fixed rate loan.
A fixed rate means your monthly payments never change once agreed and the payment only changes when the agreed term ends. This is usually five, ten or fifteen years. This period should not be confused with the ‘Grant Period’ which is the number of years it takes to repay the loan in that amount.
So if you have a 25 or 40 year mortgage and you get a fixed interest rate of 5% or 6% for one year on that loan – that’s not what you want. This means that after a year you may experience a change in your monthly payment plan; It can add up and that’s what’s happening to many worried homeowners right now.
You need 25 or 40 years of compensation, this part is fine, and 5% or 6% is fine, but when you get on your feet you want better for 10 years. Mortgage rates are so low that many financial experts will tell you to lock in this interest rate for 10, 15 or 30 years.
Your broker, bank or real estate agent can use a table to figure out exactly what your payment will be for a given loan amount. For example, if you think you want to borrow $100,000, they can tell you in advance the monthly amount it will cost to repay.
You can also do this for yourself using some internet sites. If you can afford to repay this loan, make sure the ‘term’ of the loan is several years. It may (almost always) cost a higher interest rate to ‘fix’ for a longer period, but it’s a safety measure.
Often times, first-time home buyers do their mortgage before they even start looking for a home. This way, you only look for homes in a reasonable price range. Then you have to add in your home taxes, water bill, utilities and other expenses. The secret is to keep your expenses much lower than your monthly income.
Asking a mortgage broker how much you can qualify for and how much the fee will be and how long the mortgage will last costs you nothing and does nothing for you. You don’t need to sign anything (except maybe a form that allows you to check your credit rating).
It’s wiser to check your mortgage options before you go house hunting. This way you will be ‘pre-approved’ and sellers will take you more seriously. This gives you more bargaining power to lower the price or ask for more, and the sale goes through faster.
When you first find a home, you may be tempted to rush things and accept an unwise financial deal because you can’t afford to miss out on the ‘perfect home’.