6 Questions Every First-Time Buyer Should Answer
- How much house can I afford?
- How much cash do I actually need?
- What does the buying process actually look like?
- What should I do 12 months before buying?
- What mistakes should I avoid?
- What does my real estate agent do?
01 | How Much House Can I Afford?
Your maximum loan approval and your comfortable monthly payment are not necessarily the same thing.
Start with the monthly payment
A lender will look at income, credit, existing debts, down payment, interest rate, loan program, taxes, insurance and other costs. Instead of asking only "What is the most expensive house I can buy?", ask "What monthly housing payment am I comfortable with?"
| Monthly Housing Costs To Consider | What to include |
|---|---|
| Principal + Interest | Your mortgage payment |
| Property Taxes | Local property taxes |
| Homeowner's Insurance | Insurance premium |
| Mortgage Insurance | If required by the loan (usually around .5% of the loan amount) |
| HOA | If the property has one |
Realtor tip: Connect with a lender 6–12 months before you plan to buy. It's a no-pressure conversation that helps you build a plan without committing to a purchase. Ask your lender to compare monthly payments for different property types (a single-family home, townhome, or condo), both with and without a homestead exemption, so you can see exactly how each option fits your budget.
02 | How Much Cash Do I Actually Need?
You may not need 20% down—but your down payment is only one part of the cash picture.
Your Home-Buying Cash Bucket
| Down payment | The portion of the purchase price you pay upfront. Having 20% of the purchase price for your down payment will save you from paying mortgage insurance (about .5% of the loan amount). For example, if you have a loan for $475,000 you will pay about $200 per month for mortgage insurance if you did not hit your 20% down. |
| Earnest money | Money submitted after going under contract and typically credited toward your purchase at closing if the transaction closes according to contract. (It reduces the remaining cash you need to bring on closing day). This amount is usually 1% - 3% of the purchase price and typically paid and held in an escrow account shortly after the seller accepts your offer. Good to know: if you terminate the contract before your due-diligence period ends, your earnest money is typically refunded to you in full. |
| Inspection costs | A general home inspection plus any additional inspections that make sense for the property. Examples include radon testing, mold and air quality testing, pest inspection, sewer scope, roof inspection, stucco inspection, chimney inspection, or inspections from an HVAC specialist, or foundation or structural engineer. Home inspections typically range from $300 - $600 and specialized tests are billed separately. |
| Appraisal | Often ordered by the lender as part of the mortgage process to determine the value of the home. |
| Closing costs | May include lender, title/attorney, prepaid taxes, insurance, and other transaction expenses. (Buyer closing costs in Atlanta average 2% to 5% of the purchase price, but closing at the beginning of the month increases your prepaid interest cash requirement compared to a month-end close.) (Your agent may also negotiate for concessions at closing based on the inspection report - this amount will be received at closing.) |
| Moving + first-home expenses | Moving, utilities, immediate repairs, furniture and the inevitable hardware store trip. |
Smart goal: Avoid draining your savings to close. Homeownership comes with surprises, so aim to have three to six months of expenses set aside after closing.
03 | What Does the Buying Process Actually Look Like?
Once you can see the roadmap, the process becomes much less intimidating.
| 01 | Build Your Team Connect with your real estate agent and mortgage lender. |
| 02 | Get Pre-Approved Understand financing options, qualification and a realistic price range. |
| 03 | Create Your Search Set your price, locations, property type, must-haves and nice-to-haves. |
| 04 | Find the House Tour properties and evaluate condition, location and comparable sales. |
| 05 | Submit an Offer Discuss price, earnest money, due diligence, financing, closing timeline and other terms. |
| 06 | Go Under Contract Your contract timeline begins and your team coordinates the next steps. |
| 07 | Inspect + Investigate Use the contract's due-diligence provisions to evaluate the property. |
| 08 | Appraisal + Underwriting Your lender continues the mortgage process and property valuation. |
| 09 | Final Walkthrough Confirm the home's condition shortly before closing. |
| 10 | CLOSING DAY Sign, finalize the transaction—and get the keys! |
Important: Talk to your lender before making major financial changes such as financing a car, opening new credit or changing jobs.
04 | What Should I Do 12 Months Before Buying?
You don't need to wait until you're 30 days away from buying to prepare.
| 12 Months | 9 Months | 6 Months | 2 Months |
|---|---|---|---|
| Check your credit Review monthly debts Track spending Build savings Create an emergency fund Avoid unnecessary new debt or financial changes | Talk with a lender Learn your estimated payment range Ask about loan programs Create a realistic savings target | Watch Atlanta listings Learn what your budget can buy Explore neighborhoods Identify must-haves vs nice-to-haves Pay attention to taxes and HOA costs | Update your pre-approval Finalize cash-to-close target Narrow neighborhoods Start touring Be ready to act when the right home appears |
The goal isn't to be perfect 12 months from now. The goal is to know exactly what you need to work on between now and then.
Fun fact: The average time to close from an accepted offer is 30 to 45 days in Atlanta.
05 | What Mistakes Do First-Time Buyers Make?
The biggest mistakes are often avoidable when buyers slow down and build a plan.
- Shopping before understanding the budget
- Know your comfortable range before falling in love with a house outside it.
- Focusing only on purchase price
- Taxes, insurance, interest rate, mortgage insurance and HOA dues can change the monthly payment.
- Assuming you need 20% down
- Ask a lender what loan programs may fit your situation.
- Spending every dollar to close
- Keep an emergency cushion for repairs and unexpected expenses.
- Making major financial changes during the loan
- Talk with your lender before taking on new debt, financing furniture or making other major changes.
- Waiting for the perfect house
- Your first home may not check every box. Think about the full picture: price, location, condition, payment and goals.
- Relying only on online estimates
- Online tools are useful research, but they don't replace a local market analysis or professional advice.
Your First-Home Game Plan
- Know your comfortable monthly payment
- Estimate the cash you'll need
- Choose your buying timeline
- Identify preferred areas
- Pick your top three priorities
- Build your team
06 | What Will My Real Estate Agent Do?
Your real estate agent is more than the person who opens the door to houses. A good buyer's agent helps you understand the process, evaluate properties, negotiate on your behalf, and keep the transaction moving from your first conversation through closing.
Before You Start Shopping
- Help you define your goals, priorities, and timeline
- Help you think through neighborhoods and commute
- Connect you with trusted lenders and other professionals
- Help you understand the overall buying process
- Create a search strategy based on your budget and priorities
When You're House Hunting
- Find and schedule homes that fit your criteria
- Coordinate showings around your schedule
- Point out property features and potential concerns
- Help you compare homes beyond just the listing photos
- Provide information about the local market and comparable properties
When You Find "The One"
- Analyze comparable sales and current market conditions
- Help you understand the property's value
- Discuss offer terms, strategy, appropriate contingencies, and timelines
- Prepare and submit your offer
- Communicate and negotiate with the listing agent
Once You're Under Contract
- Keep track of important contract deadlines
- Coordinate with the lender, attorney, inspectors, appraiser, and listing agent
- Help you navigate inspections and due diligence
- Help you understand your contractual options when issues arise
- Communicate updates and help keep the transaction on track
Leading Up To Closing
- Help coordinate the final walkthrough
- Confirm outstanding items are addressed
- Communicate with the necessary parties
- Help you understand what to expect on closing day
- Celebrate with you when you get the keys!
Fun fact: In many transactions, buyers do not pay their real estate agent directly out of pocket. The seller may offer compensation toward the buyer's agent's fee, but agent compensation is negotiable and can vary from transaction to transaction.
Your agent will explain how their compensation works, what is included in their services, and what you may be responsible for before you begin working together.
Your Agent's Job Is to Help You Make an Informed Decision.
You should never feel like you're navigating the process alone. Your agent's role is to provide information, explain the process, advocate for your interests within the scope of their agency relationship, and help you confidently move from "We're thinking about buying" → "We're homeowners."
Frequently Asked Questions (FAQs)
How do you find the right lender?
Start by asking your agent for a few lender recommendations, and don't be afraid to talk to two or three before choosing one. Compare a local lender, a bank or credit union, and a mortgage broker if you can. A local lender who knows the Atlanta market and closes on time can also make your offer stronger in the eyes of a seller. Ask each lender for a Loan Estimate so you can compare interest rates, fees, and closing costs side by side, and ask which loan programs fit your situation. Try to do your rate shopping within a few weeks, because multiple mortgage credit checks in a short window are typically treated as a single inquiry on your credit. Beyond the numbers, pay attention to how quickly they respond and how clearly they explain things. You'll be working closely with your lender from pre-approval through closing day!
What is due diligence?
Due diligence is the amount of time the buyer has to inspect and investigate the property to confirm the condition of the home. The amount of time a buyer has for due diligence is negotiable, can be extended if needed, and allows you to terminate the contract without forfeiting your earnest money. Average time for due diligence is 7-14 days, with 10 days being the most common negotiated length in purchase contracts.
How do you schedule an inspection and what should you expect?
Schedule the inspection as soon as your offer is accepted. The due-diligence clock is already ticking, and good inspectors book up fast! Your agent can recommend inspectors, but you choose who to hire and pay them directly. (A general home inspection typically runs $300 - $600.)
The inspection usually takes 2–4 hours depending on the size of the home. Plan to be there for the last hour so the inspector can walk you through what they found—this is the perfect time to ask questions and learn where things like the water shut-off and electrical panel are. A detailed report usually arrives within a day or two.
Don't panic when you see a long report! Every home has a list, even brand new ones. Review it with your agent, separate the big-ticket items from the small stuff, and decide whether to bring in a specialist (like a roofer or HVAC tech), ask the seller for repairs or a concession at closing, or walk away—all before your due-diligence period ends.
Should you apply for a homestead exemption?
If you own your home and live in it, yes. A homestead exemption lowers your property tax bill each year, and in most cases you only file once.
You qualify if:
- You owned the home as of January 1
- It's your primary residence
- You aren't claiming a homestead exemption anywhere else
You don't qualify if:
- It's a rental or investment property
- It's a second home or vacation home
Don't miss these:
- The deadline is April 1. If you miss it, you wait a full year for the savings.
- It doesn't come with the house. Even if the seller had an exemption, you need to file your own.
- No one files it for you. Your lender and closing attorney typically won't. It's on you.
- Ask about extra savings. Seniors, disabled homeowners, and disabled veterans may qualify for larger exemptions.
How to apply: Contact your county tax assessor's office. Most of Atlanta is in Fulton County, and parts are in DeKalb. Bring your Georgia driver's license and vehicle registration showing your new address.
Bottom line: It takes a few minutes and saves you money every year you own the home. Depending on where you live, a homestead exemption can cut hundreds of dollars a year from your tax bill. Because it can also limit how fast your taxable value rises, it could save you thousands over the years you own your home.
Ready to Start Your Atlanta Homeownership Plan?
You don't have to be ready to tour houses yet.
Start with a conversation about where you are today, where you want to be, and what needs to happen between now and buying.
Your First Home Starts with a Plan – Not a Zillow Search.
