Week 5 of Our 8-Week Home Buying Series

Buying a new home in the Atlanta area is exciting, but before you start scrolling through listings, there’s one crucial step you need to take—figuring out your financing. Whether you’re moving up, downsizing, or buying your first home, your mortgage strategy will determine what you can truly afford. Let’s break down the steps to ensure you get the best home within your budget.

Common Mistakes to Avoid When Buying and Selling Simultaneously

Don’t Set a Price Before Talking to a Lender

Too often, buyers decide on a home price—say $500,000—before ever consulting a lender. Then, they start house-hunting without knowing if that number aligns with their financial situation. In Atlanta’s competitive real estate market, this approach can lead to disappointment or missed opportunities.

Instead, work with a trusted lender upfront to determine what you can afford monthly. Once you establish a comfortable monthly payment—including HOA fees, taxes, and insurance—your lender can calculate the appropriate price range.

Smart Financing Strategies for Buying and Selling at the Same Time

One of the biggest challenges buyers face is how to buy their next home before selling their current one. Here are two financing solutions that can help:

• Bridge Loans: A short-term loan that covers the down payment for your new home before selling your current one. It allows you to make a non-contingent offer, making you more competitive in Atlanta’s fast-moving market.
• Home Equity Line of Credit (HELOC): This lets you borrow against your current home’s equity to secure your next home. Once you sell your home, you pay off the HELOC with the proceeds.

Each option has pros and cons, so consulting with a real estate expert and lender is key to choosing the right path.

Adapting Your Financing Strategy to the Atlanta Market

Market conditions greatly impact financing strategies. If the market is slow, you might have the flexibility to make an offer contingent on selling your home. In a seller’s market, however, non-contingent offers are often necessary to stay competitive. Knowing when to buy and sell can save you thousands and reduce stress.

BONUS: Mortgage Tips for Atlanta Homebuyers

Here are some essential mortgage insights to help you navigate financing with confidence:

• Loan Approval vs. Affordability: Lenders may approve you for more than you should spend. Stick to what aligns with your budget, not just what the lender offers.
• Impact of Credit Scores: A higher credit score means lower interest rates. If needed, work on improving your score before applying for a mortgage.
• Adjustable-Rate vs. Fixed-Rate Mortgages: If you plan to move in 5-7 years, consider an ARM, which often has lower initial rates than a 30-year fixed mortgage.
• Watch for Hidden Fees: Some lenders advertise low rates but add high fees. Request a full breakdown of costs before committing.

Let’s Create Your Home Buying Strategy

Navigating the Atlanta real estate market requires a clear financial plan. Before you start house hunting, let’s discuss your goals and mortgage options. I can connect you with top lenders and help craft a strategy that aligns with your budget and homeownership dreams.

Looking for the best way to finance your next home? Contact me today, and let’s create a plan that works for you!