NOTE: A Pre Approval Letter is not an Approval or a commitment to lend. It is simply an analysis of your credit report & debt to income ratios which will determine an amount that you may qualify to purchase. A Residential or Commercial Loan Approval is contingent upon verification of other documentation including but not limited to:
Proof of Employment, Income, Filed Tax Return verification, Rental History Verification & a Final Underwriting Review.
Top 5 Reasons Why You Need to Get Pre Approved:
Homes are on the market for sale less than 28 days in the MLS & even less in real time.
Homes are SOLD faster than buyers can submit offers. If the home is priced to sell, it will sell.
For example, The average sales price is $331,305 in Fulton County so properties priced under that are even more competitive.
Sellers are receiving multiple offers due to Low Housing Inventory. Low inventory makes our current market conditions a sellers market.
Buyers who are already Pre Approved prior to showing WILL beat you to the offer table and chances are they are already there. It only takes a few minutes to Get-Pre Approved.
Avg Sales Price
Median Sales Price
Inventory (Months Supply)
Median Days on Market
In short, there is barely a 3 month supply of inventory that averages 28 days on the market (ex, Fulton County) before it’s reported under contract in the mls, so the actual average days on market are much less than that. If the property is priced to sell, property owners are receiving multiple offers the day the property is listed for sale. Also if your an Atlanta buyer purchasing property much less than the average sales price, now you can see why every property you’ve called about is already under contract, pending or sold.
As a buyer in the Atlanta market or any market that has low inventory, you have to be ready because your competing with other active buyers that are already pre approved & have their proof of funds in hand ready, willing & able to submit a written offer on a property.
This is why getting Pre Approved for a home loan is the first step you should make before attempting to make an appointment to see property. The early bird gets the worm is not a sales pitch. It’s just the facts & the above chart, along with the MLS data & statistics supports the truth about home buying in Atlanta.
1. The first step to buying commercial or residential real estate is getting pre-approved by a lender before you shop. 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 property. In most thriving markets, homes can go under contract within days if the property is priced to sell. If the property is priced very well, you could expect the property to have multiple offers. 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 products that may benefit you. Feel free to use our finance calculator for different sale price scenarios.
3. Our clients can also request a Residential or Commercial Property Analysis so buyers can understand the value of the investment they are seeking before making an offer. This is key because the property may not be worth the offer you were going to make once you see a professional analysis of similar properties that recently sold in an area. Commercial buyers visit our consulting page for more market & analysis information.
SEARCHING FOR REAL ESTATE
4. Our customers can sign up on our website, for automated daily property listings based on your specific needs. Are you looking for a luxury home, gated home or commercial business? Whatever your needs are, automated listings make it easier for our customers.
5. 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
6. 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.
7. 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 an area or specific neighborhood. This information is vital on purchasing a property in todays market.
8. 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.
9. If purchasing a residential property, 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 property inspection prior to the installation of drywall when purchasing a new home. Any defects prior to the installation of sheet rock could be missed. For example, 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.
NEW CONSTRUCTION UPGRADES
10. 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.
11. Consultation services in this stage consist of exploring title insurance, 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.
12. At this time all final inspections of the property 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 with the lender & don’t hesitate to ask questions. 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. Our services are free to residential buyers. Information subject to change based on rules, regulations & state laws specific to the location of the property. The Broker, Angel Knight is licensed in multiple states where other terms & conditions may be applicable.
1# Searched Boutique Brokerage
Licensed in GA, FL, TN, SC & NC
1# Searched Luxury Boutique Brokerage
Member National Association of Realtors
Member Georgia Association of Realtors
Member Atlanta Board of Realtors
Buyer, Seller & Landlord Representation
Specialize in Affordable Luxury, Luxury, Commercial & Management
One of the few Minority & Women Owned Brokerages serving for a DECADE
Broker has received numerous Awards from (CPHB) Certified Home Builders
Top Builders in Atlanta have trusted the Broker with listing over $250 Million in inventory
You don’t have to worry about being SOLD. Buying a home should be your decision.