First-time buyer guide
Nine steps, from saving to keys
About half of everything we close is a first purchase. Here is the whole path written out, including the step most lenders quietly skip.
The path, in order
Step four is the one that gets skipped. It is also the one worth the most money.
Work out what you can live with
Not what you can be approved for. Take your take-home pay, subtract everything that is not housing, and see what is left. The number you are comfortable with is almost always below your ceiling.
Pull your own credit, for free
You can check your reports at no cost and without a score impact. Look for errors and old collections before a lender does. Disputes take 30 days, so start now rather than in month three.
Talk to a loan officer early
Even if you are a year away. A free conversation tells you which programs are in play, what your score needs to be, and whether your debt load is the real constraint.
Get screened for assistance
This is the step most buyers skip because nobody offers it. State, city and county programs each have their own income and price limits, and stacking them correctly is worth thousands.
Take the education course
Six to eight hours online, required by nearly every assistance program, and genuinely useful. Do it early: the certificate expires, and a lapsed one can hold up a closing.
Get fully pre-approved
Verified income, verified assets, reviewed by an underwriter. In a competitive metro Atlanta market, this is what turns an offer into a winning one.
Shop with a real price ceiling
Your letter carries the number you are approved for. If you want to go above it, call before you write the offer rather than after.
Write the offer with your agent
We tell your agent the seller concession cap for your program, how much appraisal gap you can cover, and how long the assistance approval will take.
Close, and do not buy furniture first
No new credit, no big purchases, no moving money around without telling us. Then sign at the attorney's office and get your keys.
What it actually costs to get in
Six line items. Only two of them are the down payment and the closing costs everyone talks about.
| What | Typical range | When and why |
|---|---|---|
| Earnest money | 1% to 2% of price | Paid at contract, credited back to you at closing. |
| Home inspection | $400 to $650 | Paid out of pocket, usually within a week of going under contract. |
| Appraisal | $550 to $750 | Ordered the day your contract is ratified. |
| Down payment | 0% to 20% | Assistance funds can cover most or all of this for eligible buyers. |
| Closing costs | 2% to 3% of price | Title, attorney, transfer tax, recording, lender fees and prepaid escrow. |
| First year insurance | $1,500 to $2,400 | Collected at closing and held in escrow going forward. |
Sample ranges for metro Atlanta on a demo website. Your own numbers will differ.
Mostly wrong, occasionally expensive
You need 20% down
Conventional starts at 3%, FHA at 3.5%, and VA and USDA at nothing. Assistance can cover most of what is left.
You need perfect credit
620 opens conventional, 580 opens FHA. Below that we build a plan, and plenty of our closings started at a 540.
Pre-qualification is enough
In this market it is close to worthless. A full pre-approval is verified by an underwriter, and listing agents can tell the difference.
Assistance makes your offer weak
It adds a few days. We offset it by getting you fully underwritten before you shop, so your letter says approved.
Renting is throwing money away
Over two years, buying usually loses on closing and selling costs. Over seven it usually wins. It depends on how long you stay.
You should shop at the top of your approval
The clients who stay comfortable buy well below their ceiling and keep three to six months of reserves.
If you are not ready yet, say so
Carmen's entire week is people who are six, twelve or eighteen months out. There is no charge for any of it and no pressure to move faster than your savings allow.
- A written credit and savings plan with specific targets
- A quarterly check-in call, not an email drip
- A free seat at the monthly workshop, in English or Spanish
- An honest answer about whether renting another year is smarter
How it goes when it works
Walter's free workshop is where I learned what an escrow shortage was. Six months later he was still the one answering my texts at 9pm.
5 out of 5 stars
Kendra Ashworth
Grant Park · worked with Walter Boakye
- Program used
- Conventional, 3% down
- Preparation
- Free monthly workshop
- Support after closing
- Still answering questions
First-time buyer questions
It is real money, and a lot of it goes unclaimed in Georgia each year because the applications add work. Sample state and city programs range from $7,500 to $12,500 toward down payment and closing costs for eligible buyers.
Depends on the program. Some are forgiven after five to ten years of living in the home, some are repaid when you sell or refinance, and some carry a small zero-interest second payment. We tell you which type you are getting in writing before you commit.
Most programs define first-time as no ownership interest in a primary residence during the last three years. If you sold in 2021, you likely qualify again.
Yes, completely. Eleven of our loan officers close files in Spanish, including the attorney walkthrough at the closing table. Our Spanish-language page explains the whole process, and Marisol Quintero leads that practice.
Magnolia Lending Group
Your first house is not out of reach
Call (404) 555-0134 and find out what you qualify for. Free, no credit pull, and no pressure to move before you are ready.
Free consultation. Sample rates and assistance amounts shown on this site are illustrations, not offers.