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10 Mistakes First Time Homebuyers Make in Georgia

The avoidable missteps I see most often, and exactly how to sidestep each one so your first purchase goes smoothly.

Homebuyer Education · May 30, 2024

The single biggest mistake first-time Georgia buyers make is shopping for homes before talking to a lender, which sets up nearly every other mistake on this list. Here are ten specific, avoidable missteps I see repeatedly, and exactly how to sidestep each one.

1. Shopping before getting pre-approved

Without a real pre-approval, you are shopping against a guess instead of your actual budget. This leads to falling for a home you cannot really afford, or underestimating what you actually qualify for.

2. Assuming you need 20 percent down

Conventional loans allow 3 percent down, FHA allows 3.5 percent, and VA and eligible USDA buyers can put zero down. This single myth talks people out of buying years before they needed to wait.

3. Changing jobs or financing a car mid-process

Any significant change to your income or debt between pre-approval and closing can change your qualification and delay or derail your closing entirely.

4. Making large, unexplained deposits before applying

Underwriters need to source large deposits. Cash gifts, side income, or transfers between accounts right before applying can trigger documentation requests that slow the process down.

5. Skipping the home inspection

An inspection can reveal problems worth far more than its cost. Skipping it to save money or move faster removes one of your only chances to walk away from a property with serious hidden issues.

6. Not comparing loan programs

Many first-time buyers default to whichever program their agent or a single lender mentions first, without comparing FHA, conventional, VA, and USDA side by side to see which actually costs less for their specific situation.

7. Forgetting property taxes and insurance in the budget

Georgia property tax rates vary meaningfully by county, and forgetting to include taxes and insurance in your budget estimate can lead to a real payment that surprises you at closing.

Nearly every mistake on this list is avoidable with one conversation before you start looking at homes. That conversation costs nothing and typically takes about ten minutes.

8. Not asking about down payment assistance early enough

Some Georgia counties and cities offer local assistance programs from time to time, but eligibility often needs to be confirmed before you go under contract, not after.

9. Waiting too long to respond to document requests

Underwriting moves at the speed of your responses. A document request that sits for a week can push your closing date back by the same amount.

10. Choosing a lender based only on the advertised rate

The lowest advertised rate does not always reflect the total cost once fees, points, and service quality are factored in. A slightly higher rate with a smoother process and lower fees can often be the better overall deal.

Georgia considerations

Georgia's attorney closing process, its county-by-county property tax variation, and its standard purchase contract forms are all things a Georgia-based lender and agent can walk you through, which is one more reason working with someone who actually operates in this market matters.

Frequently asked questions

Shopping for homes before getting pre-approved. It sets up almost every other mistake on this list, from falling for the wrong home to being unprepared for your real monthly payment.

Correct. Conventional loans allow as little as 3 percent down, FHA allows 3.5 percent, and VA or eligible USDA buyers can put zero down. Twenty percent is not a requirement, it is simply one option among several.

Respond to every document request as quickly as possible, avoid large unexplained deposits, and avoid opening new credit or making large purchases until after closing.

Ready to avoid these mistakes entirely? Let's have that ten minute conversation before you start touring homes.

This article is general education, not a commitment to lend or an offer of credit. Program availability, terms, rates, and qualification guidelines vary by lender and are subject to change; all loans are subject to underwriting and final approval. Market figures are approximate and change over time. For guidance specific to your situation, reach out directly. Garrett Potz, NMLS #631592 · Affinity Home Lending, Company NMLS #1181151 · Equal Housing Lender.

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