Your First-Time Homebuyer FAQ

You qualify as a first-time buyer if you have never owned a home, or if you have not owned a home (or had your name on a title) in the past three years — even if you owned one long ago. This three-year rule is what most down payment assistance programs, including Georgia Dream, use to decide eligibility, so a lot more people qualify as “first-time” than the name suggests.

You’re generally in a good position to buy when you have: steady, verifiable income for the past two years (even if it’s from two different jobs); a handle on your monthly debts relative to your income; some savings set aside for a down payment and closing costs, plus a cushion left over afterward; and a reasonably clear idea of how long you plan to stay put (buying rarely makes sense if you expect to move again within a year or two).

You do not need perfect credit or a huge savings account to get started — you need a clear picture of where you stand, which is exactly what a pre-approval conversation gives you.

Rent is a fixed, non-refundable monthly cost. A mortgage payment builds equity (ownership) with every payment, and a portion of your interest and property taxes may be deductible. But owning also brings costs renting doesn’t: property taxes, homeowners insurance, maintenance and repairs, and possibly HOA dues. Most buyers come out ahead over time, but the comparison depends on how long you stay in the home and what home prices and rents do in your market — ask me for the numbers specific to the neighborhoods you’re considering.

Roughly: 1–4 weeks to get pre-approved and start touring homes (faster if your finances are already organized); days to a few months of active house hunting, depending on inventory and how specific your criteria are; and then 30–45 days from an accepted offer to closing on financed purchases (cash purchases can close much faster). Altogether, most first-time buyers go from “let’s get pre-approved” to keys-in-hand in two to four months, though it can be quicker or take longer depending on the market and your search.

It depends on the loan type, but here are the common minimums:

• Conventional loans: typically 620 and up
• FHA loans: as low as 500–580 depending on your down payment
• VA loans: no official minimum set by the VA, though most lenders look for 580–620
• USDA loans: typically 640
• Georgia Dream down payment assistance: minimum middle credit score of 640

A higher score generally gets you a better interest rate, so even if you qualify at the minimum, raising your score before you apply can save you real money over the life of the loan.

Pre-qualification is a quick, informal estimate based on numbers you report yourself — useful for a rough sense of your range, but it carries little weight with a seller. Pre-approval is a lender’s conditional commitment after actually verifying your income, assets, credit, and debts. A pre-approval letter is what you need in hand before we start touring homes and before you can make a competitive offer — in most markets, sellers won’t seriously consider an offer without one.

Lenders look at your total monthly housing payment (principal, interest, taxes, insurance, and any HOA dues, often abbreviated PITIA) as a share of your gross monthly income, along with your total debt-to-income ratio. But “how much you qualify for” and “how much you should comfortably spend” are two different numbers — I always recommend buyers get pre-approved for their maximum, then decide for themselves what payment actually feels comfortable alongside their other goals. Use the Affordability Calculator below the Buyer Resources section of this site to run your own numbers.

DTI is your total monthly debt payments (car loans, student loans, credit cards, other mortgages, and your new projected housing payment) divided by your gross monthly income. Most loan programs cap DTI somewhere between 43% and 50%, though the exact ceiling depends on the loan type and your overall file. Paying down revolving debt (credit cards especially) before you apply is one of the fastest ways to improve both your DTI and your approved loan amount.

No — as long as you do it within a focused window. Credit scoring models treat multiple mortgage inquiries made within a 14–45 day period (depending on the model) as a single inquiry, specifically so borrowers can rate-shop without being penalized. Spreading your mortgage applications out over months, on the other hand, can cost you more in score impact.

Expect to gather: two years of W-2s or tax returns (more documentation if you’re self-employed), recent pay stubs, two to three months of bank and asset statements, a photo ID, and an explanation for any large or unusual deposits in your accounts. If you’re receiving down payment assistance or a gift from family, you’ll also need a signed gift letter. I can send you a full pre-approval checklist before you sit down with a lender so nothing catches you off guard.

Much less than most people think:

• Conventional loans: as little as 3% down for qualifying first-time buyers
• FHA loans: 3.5% down with a credit score of 580+
• VA loans: 0% down for eligible veterans, active-duty service members, and surviving spouses
• USDA loans: 0% down in eligible rural and suburban areas

20% down is not required to buy — it’s simply the threshold that lets you avoid mortgage insurance on a conventional loan (see below).

The primary state program is Georgia Dream, run by the Georgia Department of Community Affairs. It pairs an affordable first mortgage with down payment assistance structured as a 0% interest second loan with no monthly payment — it’s repaid only when you sell, refinance, or stop living in the home as your primary residence. To qualify you’ll generally need: a minimum middle credit score of 640, at least $1,000 of your own funds or a documented gift toward the purchase, household income within your county’s limit, and completion of a HUD-approved homebuyer education course. There are additional assistance tiers for certain public-service professions. Because the exact assistance amount and income limits vary by county and household size and do change, use the “Get Down Payment Assistance” button below to run your specific numbers, or ask me and I’ll walk you through it directly.

Closing costs are the fees beyond your down payment needed to finalize the purchase — lender fees, appraisal, title search and title insurance, recording fees, prepaid property taxes and insurance, and (in Georgia) attorney fees. Budget roughly 2% to 5% of the purchase price. Use the Closing Cost Estimator below to get a number specific to your purchase price.

Yes — this is called a seller concession or seller-paid closing costs, and it’s a completely normal, common part of contract negotiation, especially when a home has been on the market a while or when we’re structuring an offer to help you preserve cash. Loan programs cap how much a seller can contribute (generally 3–9% of the purchase price depending on your loan type and down payment), so this is something we build into your offer strategy together.

Earnest money is a good-faith deposit (commonly 1–3% of the purchase price in metro Atlanta) that you put down when your offer is accepted, showing the seller you’re serious. It’s held by the closing attorney or a title/escrow company, not paid directly to the seller, and it is later credited toward your down payment and closing costs at closing — it is not an additional cost on top of your down payment. If you back out of the contract for a reason covered by your contingencies, your earnest money is returned; if you back out outside those protections, you can forfeit it, which is why the due diligence period (below) matters.

Conventional loans aren’t backed by a government agency; they follow guidelines set by Fannie Mae and Freddie Mac. They typically require a credit score of 620+, allow down payments as low as 3% for qualifying first-time buyers, and if you put down less than 20%, you’ll pay private mortgage insurance (PMI) until you reach 20% equity — unlike FHA mortgage insurance, PMI on a conventional loan can be removed once you hit that threshold. For 2026, the baseline conforming loan limit is $832,750 in most of the country (higher in certain high-cost areas); loans above that limit are “jumbo” loans with their own requirements.

FHA loans are insured by the Federal Housing Administration and are popular with first-time buyers because of their flexible credit requirements: as low as 500 with 10% down, or 580 with just 3.5% down. The tradeoff is mortgage insurance that, on most FHA loans today, lasts for the life of the loan unless you refinance later. FHA loan limits are set per county and are generally lower than conventional conforming limits — your lender can confirm the exact limit for the county you’re buying in.

Available to eligible veterans, active-duty service members, and certain surviving spouses, VA loans are guaranteed by the Department of Veterans Affairs and are one of the best mortgage benefits available: 0% down payment, no monthly mortgage insurance, and typically competitive interest rates. There is a one-time VA funding fee (often financeable into the loan), which is waived for some disabled veterans.

Backed by the U.S. Department of Agriculture, these loans offer 0% down financing for eligible buyers purchasing in designated rural and many suburban areas (the map covers more of Metro Atlanta’s outer counties than most people expect). They have household income caps tied to the area, and require the property to be your primary residence.

It depends on your credit, how much you have saved, whether you’ve served in the military, and where you’re buying. This is exactly the kind of question a good lender partner and I sort out together with you — I work with several trusted lenders and I’m glad to make an introduction so you can compare real, personalized numbers rather than general rules of thumb.

You’re not legally required to use one, but a buyer’s agent exists specifically to protect your interests — something the listing agent, who represents the seller, cannot do for you. An experienced agent handles pricing strategy, negotiation, contract deadlines, coordinating inspections and repairs, and catching problems before they become expensive surprises.

In most transactions, no — buyer’s agent compensation is typically covered by the seller as part of the listing agreement, or negotiated into the purchase contract, so representation often comes at no direct cost to you. Since 2024, buyers and their agents sign a written buyer representation agreement up front that spells out exactly how compensation will work for your specific purchase, so there are no surprises.

Building your search criteria and setting up alerts for new listings that match; scheduling and attending showings; researching comparable sales so we price your offer correctly; writing and negotiating the offer and any counteroffers; managing the timeline during your due diligence period; coordinating with your lender, the closing attorney, and the other side’s agent; attending your inspection and negotiating any repair requests; and walking you through the closing documents line by line.

It’s a written agreement between you and your agent that formalizes the relationship: what areas and price range we’re searching, how long the agreement runs, and how compensation is structured. It protects you by making clear, in writing, that I’m working for your interests specifically.

Start with what has to be true regardless of the house itself: commute tolerance, school zone if relevant, budget ceiling, and must-have versus nice-to-have features. From there, I’ll set you up with a live, filtered MLS search so you see new listings the moment they hit the market, rather than relying on public sites that often lag by a day or more.

There’s no magic number — some buyers know within three showings, others need fifteen to calibrate what they actually want versus what they thought they wanted. What matters more than the count is refining your criteria after each showing so we’re not wasting your weekends on homes that were never going to work.

New construction gives you modern systems, builder warranties, and the ability to select finishes, but often comes with less room to negotiate price and longer timelines if it’s not already built. Resale homes offer established neighborhoods, more negotiating flexibility, and the ability to move faster, but may need updating and come with less certainty about the condition of major systems until inspection. Critically: if you tour a builder’s model or sales office before I’m formally introduced as your agent, most builders will not allow me to represent you on that home afterward — always loop me in before you visit a new-construction sales office.

That’s a different track entirely, and one I also work through directly with buyers: finding and evaluating land, matching you with a vetted custom-home builder from my network, and staying involved from the first sketch through the final walkthrough. See the “Explore Buying a Custom-Built Home” option above for that path.

We look at recent comparable sales (“comps”) for similar homes nearby, how long the home has been on the market, how many other offers it’s likely to draw, and the seller’s stated motivation where we can learn it. From there we build a strategy around price, closing timeline, and any concessions that make your offer stand out beyond just the number.

In Georgia, most residential contracts include a negotiated due diligence period (commonly 7–14 days, though it’s negotiable) during which you can conduct inspections, review the property, and terminate the contract for essentially any reason with your earnest money returned. Once due diligence ends, backing out generally means renegotiating specific contingencies (like financing or appraisal) rather than walking away freely — so this window is your main opportunity to fully vet the home.

During due diligence, generally yes, with your earnest money protected. After it ends, you can typically still exit the contract if a contingency you kept isn’t satisfied — for example, your financing falls through, or the appraisal comes in low and the seller won’t adjust the price — but walking away outside of a protected contingency puts your earnest money at risk.

The common ones are: a due diligence/inspection contingency, a financing (loan) contingency, and an appraisal contingency. Each one protects you in a specific scenario, and each one can also make your offer slightly less competitive in a multiple-offer situation — part of my job is helping you find the right balance of protection versus competitiveness for the specific home and market you’re in.

Yes — even on a newer home, and even in a competitive market. A licensed inspector examines the roof, foundation, electrical, plumbing, HVAC, and overall structure and gives you a detailed report of what’s working, what needs attention soon, and what’s a safety issue. It’s the single best tool you have for avoiding expensive surprises after you move in.

In Metro Atlanta, general home inspections commonly run $350–$600 depending on the size of the home, covering the major systems and structure noted above. It does not automatically include specialized inspections (see below) — those are ordered separately if the home or your lender warrants them.

A home inspection is for you — it tells you the physical condition of the home. An appraisal is for your lender — a licensed appraiser independently estimates the home’s market value to confirm they’re not lending more than the property is worth. You typically pay for both, but only the appraisal is required by your lender; the inspection, while not legally required, should never be skipped.

If the appraised value comes in below your contract price, you generally have a few options: renegotiate the price with the seller, make up the difference in cash, challenge the appraisal with additional comps, or (if you kept an appraisal contingency) walk away with your earnest money protected. Which option makes sense depends on the gap and how much you want the specific home — we’ll work through it together if it comes up.

Depending on the home and loan type: a wood-destroying organism (termite) inspection is required for most FHA and VA loans and is common practice even on conventional purchases in Georgia; a septic inspection if the home isn’t on public sewer; a well water test if the home has a private well; and a radon test, which many buyers choose to add given how common elevated radon levels are in parts of North Georgia.

Georgia is one of a number of states where the law requires a licensed attorney to supervise the closing of a real estate transaction and the preparation or review of the deed — unlike many other states, where a title or escrow company alone can close a sale. The closing attorney protects both sides by confirming clear title, preparing the closing documents, and disbursing funds correctly.

This varies by contract, but often the party paying for title insurance selects the attorney/title company, which in many purchase contracts is the buyer — meaning you may have a say in who handles your closing. I can recommend closing attorneys I’ve worked with and trust.

You’ll review and sign the final loan documents and the deed, confirm the numbers on your Closing Disclosure match what you expected, and pay any remaining funds due (typically by cashier’s check or wire, arranged in advance with the attorney’s office). The attorney then records the deed and disburses funds to the seller, agents, and any other parties owed at closing.

A valid government-issued photo ID, your remaining funds due (wired in advance or as a cashier’s check made payable exactly as the closing attorney instructs), and proof of homeowners insurance already in place for the property. I’ll confirm the exact list with you a few days ahead of your closing date.

In most Metro Atlanta transactions, once the deed is recorded and funds have disbursed — typically the same day as closing, sometimes the next business day depending on timing and the specific contract terms. We’ll confirm the exact handoff time as part of your closing details.

A homestead exemption reduces the taxable value of a home that is your primary residence, lowering your annual property tax bill. If the home you’re buying will be your primary residence, yes — file for it with your county tax assessor’s office as soon as you’re able to after closing (deadlines and exact rules vary by county).

Beyond your mortgage payment: property taxes, homeowners insurance, routine maintenance (budget roughly 1% of the home’s value per year as a rule of thumb), utilities, and HOA dues if the community has one. Setting aside a maintenance reserve from day one helps absorb the surprises that inevitably come with owning versus renting.

A home warranty covers repair or replacement of major systems and appliances (HVAC, water heater, plumbing, and similar) for an annual fee plus a service call charge when something breaks. It’s optional, and can be a smart layer of protection in the first year or two after closing, especially on an older home — ask me about it and I can help you weigh whether it makes sense for your specific purchase.

First check whether it’s covered by a home warranty (if you have one) or a builder warranty (on new construction). If it was something that should have been caught or disclosed before closing, reach out to me right away — there are sometimes still remedies available depending on timing and what was or wasn’t disclosed during the sale.

• Making large purchases or opening new credit before closing. Lenders re-check your credit and debts right before closing — a new car loan or furniture financed on a store card can jeopardize your approval even after you’re under contract.
• Changing jobs mid-process. Lenders want to see stable, verifiable income; a job change (even a good one) can require re-underwriting and delay or derail your closing.
• Not budgeting for closing costs on top of the down payment. Many first-time buyers save exactly enough for the down payment and are caught off guard by the additional 2–5% needed at closing.
• Skipping the home inspection to make an offer more competitive. It can feel like it strengthens your offer, but it also removes your best protection against a costly surprise.
• Shopping for homes before getting pre-approved. Falling in love with a home before knowing your real budget almost always leads to disappointment.
• Underestimating how competitive a market can be. Coming in with a lowball offer on a desirable, well-priced home in a hot market often means losing it to a stronger offer.
• Not reading the Closing Disclosure carefully. Compare it against your Loan Estimate and ask questions about anything that changed before you get to the closing table.