1st STEP – Get Pre Approved Prior to Showings
We are here to help. If you need Pre Approval assistance, e-sign the Buyer Acknowledgement & we will contact you.
If you’ve already been Pre Approved with a lender, request a Pre Approval Letter from your lender.
We will need a recent copy of your Pre Approval Letter prior to making showing appointments.
A Pre Approval Letter means a lender has evaluated your credit worthiness.
The Pre Approval Letter will state how long it is valid & may contain other conditions necessary for you to obtain the mortgage.
*Cash Buyers, request a Proof of Funds Letter from your bank prior to showings. This confirms to the seller that your bank has verified that you have the available funds required to purchase the property.
Note – Even if you are providing an 80% cash downpayment, you still need to get pre approved for the additional 20%.
Why Do I Need to Be Pre Approved before Viewing Property?
In short, when the seller list their property for sale, they sign a listing agreement with an Agent
to show their property to Ready, Willing & Able buyers. A Ready, Willing & Able buyer is a qualified buyer who has been Pre Approved by a lender based on their credit worthiness to purchase a property for a specified amount. If a buyer is Ready & Willing but not Able to provided a Pre Approval Letter to the Agent, then the property owner is not entitled to show their property. In addition, the seller requests to see a copy of the buyers Pre Approval Letter prior to confirming an appointment to view the property.
More Helpful Resources & Answers to Why You Need to be Pre Approved Prior to Showings
Begin Your Home Search with a Pre-Approval in Hand – Realtor.com
Don’t Forget Your Pre-Approval Letter – Realtor.com
Comparing Prequalification to Pre-Approval – Realtor.com
Get Pre Approved – Money 101 Lesson#8 – Money Magazine
Get Pre Approved before Shopping for a Home – Credit.com
Get Pre Approved before you begin looking at homes – Money USNews
Buying a Home – Investopedia
House Hunting Tips – Realtor.com
Protecting Yourself When Purchasing a Home – Georgia Association of Realtors
2nd Step – E-Sign Customer Acknowledgement or E-Sign Buyer Client Agreement if you want Diamond Realty Brokers to be your Realtor.
It is standard practice to sign an Agreement or Acknowledgement, which explains the relationship between the buyer and the real estate agent. In fact, State law prohibits Broker from representing Buyer as a client without first entering into a written agreement with Buyer under O.C.G.A. 10-6A-1.
Note: The Listing Agent & Buyers Agent share the commission, which is paid by the seller.
The idea that buyers can negotiate a better deal without having an Agent is a myth. The fact that you don’t have an Agent means the Listing Agent will not have to share the commission with another Agent, all while you are not being represented. Buyers, don’t sell yourself short. Do your research & homework before purchasing a home without a licensed professional. You’ll be glad you did.
Sign up for Email Property Alerts. Diamond Realty Brokers buyers can save custom search criteria & receive email alerts relevant to their buying needs.
Minimum Requirements for Residential Financing:
1. 600 Credit Score (no late payments within 12 months) Best Score 640 & above
2. 3.5% DownPayment for FHA Financing (excluding HUD Homes & VA Loans).
For example: If sales price = $180,000 Then Down Payment = $6,300
2. 3 months Bank Statements
3. Most recent Pay stub
4. Filed Tax Returns (if self employed-last 2 yrs tax returns)
5. Any B/K must be 3 years from discharge
6. Any prior foreclosure must be 3 years from when the previous bank sold the property.
ATLANTA REAL ESTATE
Atlanta real estate has a competitive buyers market due to the number of foreclosures & short sales on the market. Atlanta real estate can be difficult to bid or find if you don’t have an experienced real estate professional looking out for your needs & concerns. At the same time searching for Atlanta real estate can be very exciting and liberating. However, there are many buyer decisions to consider. Where to buy, what to buy, condo or single family home? How much can you afford versus what you want to spend are just a few decisions buyers need to make. Angel Knight has a 10 year proven track record of helping homebuyers build their legacy of homeownership & looks forward to assisting you.
1.The first step to homeownership is getting pre-approved by a lender before you shop for home. This will help determine a target price range that is suitable for you. This needs to be done about 60 days before you anticipate closing on a new home. In Atlanta real estate, homes can go under contract within 45 – 60 days if the property is priced average. If the property is priced very well, you could expect the property to go under contract within days from being listed. Once we have your approval letter from your lender, we then schedule property showings. Please note your pre approval letter from your lender is active for about 45 days, if we don’t contract on a property within 45 days you’ll need to get pre approved again. This is mainly because the lender will need to make sure there hasn’t been any changes to your income, employment & credit profile.
2. Choose a lender that is right for you. If you can’t find a lender ,our mortgage partners have a number of mortgage products that may benefit you. Downpayment Assistance & 100% Financing (for those who qualify) & much more. If your not qualified for downpayment assistance. FHA now requires a 3.5% downpayment on the purchase of homes other than hud homes. For example, if the purchase price of your home is $200,000 multiply by 3.5% which equals $7000 downpayment. Feel free to use our mortgage calculator for different sale price scenarios.
SEARCHING FOR ATLANTA REAL ESTATE
3. Our clients can sign up on our website, for automated daily home listings based on your specific needs. Are you looking for your dream home in metro Atlanta or a condo in Buckhead? Whatever your needs are, automated listings make it easier for our clients. We can reduce the time that you spend searching & or considering buying a property that is not worth the asking price. Our clients can also request an comparative analysis of home values in the neighborhood they are considering so buyers can be sure what kind of investment they are making before making an offer on a home. This is key because the property may not be as appealing once you see a 90 day professional analysis of the value of homes that recently sold in that neighborhood. Another value in having your own realtor.
4. We receive first hand knowledge of builder & seller bonuses, giveaways, price changes & lender incentives. Our clients receive immediate updates on these special incentives.
BUILDER & SELLER NEGOTIATIONS
5. Many buyers are unaware onsite builder agents & owner agents do not represent them. Builder representatives represent the builder not you, the buyer. This offers a number of challenges to the buyer. There is special language in New Construction contracts as well as Resale Contracts that we can counsel you through. For example, you could jeopardize your earnest money if contracts do not have special language and finance contingency clauses that protect the buyer’s interest & much more.
6. The best way to make a good offer on a property is to have an experienced agent that can find out how much recent properties sold for in that neighborhood. This information is vital on purchasing a home in todays market.
7. All builders are not equal. All builders are not Certified Professional Builders. There are many important differences that are necessary to understand when choosing a new home. The numbers of builders that build expensive custom homes that are not Certified Professional Builders will surprise you.
Below is a list of mandatory requirements for a Certified Home Builder.
•All Certified Professional Builders provide a 2-10 Home Warranty.
•A Certified Professional Home Builder must offer mandatory binding arbitration.
•All Certified Professional Home Builders must maintain appropriate insurance coverage’s, including builders risk, general liability and other insurance required by law. A Certified Professional Home Builder must offer mandatory binding arbitration.
•All Certified Professional Home Builders must maintain appropriate insurance coverages, including builder’s risk, general liability and other insurance required by law.
•All members of the Certified Professional Home Builder Program must attend an orientation session presented by The Housing Institute, Inc. regarding what certification entails, including their duties as a Certified Professional Home Builder.
•All Certified Professional Home Builders must complete 16 hours of continuing education a year and must apply for recertification annually.
•To become a Certified Professional Home Builder a builder must have 3 or more years of building experience.
•A Certified Professional Home Builder must derive their main source of income from home building.
8. We highly recommend that you hire a professional home inspector that will review the HVAC, electrical, plumbing, phone wiring, attics, crawl spaces and basements. We also highly recommend a home inspection prior to the installation of drywall when purchasing a new home. Any defects prior to the installation of sheet rock could be missed. Most builders in Georgia are production builders. So they typically won’t slow down construction if you decide after the fact that you want a pre drywall inspection. Most sellers & builders require you to determine in advance whether you will have an inspection so the staff or owners agent can be put on notice. If you purchase a new construction home, most builders require that your inspection fax them a list of their credentials & certifications before allowing them to inspect. This is to ensure you hire a certified inspector.
9. During this stage it is also important that thorough checks are made to make sure that the upgrades that were agreed in the contract are actually installed in the home. These mistakes are very common in new construction. The builder’s superintendent that started building your home is usually not the same builder that will install the finishes on the home. Most of the time the mistakes are just plain human error especially if you are not buying a custom built home. We will consult with the builder’s team from time to time in an effort to make sure they deliver the home according to your expectations.
10. Consultation services in this stage consist of exploring title insurance, homeowners & hazard insurance and a review of the pre closing HUD Settlement Statement. Most pre paid items are based on a daily rate so it is important to review these items for accuracy before the actual closing day as well as right before closing.
11. At this time all final inspections of the home have been completed. You will receive a final HUD Settlement Statement for review prior to closing. We encourage you to look over this document carefully. This is the document that your lender will prepare that confirms the taxes, insurance & closing cost fees associated with your mortgage. The mortgage consultant will have completed a final verification of your employment, income and other background checks. Also remember the closing attorney represents the lender.
Disclosure – Information shall not be used as real estate advice unless you are a client of Diamond Realty Brokers.
ENJOY YOUR HOME!