My industry colleague, Dustin Hughes, made this video for first time home buyers for his market, Portland.  It is applicable here in Atlanta, so I hope you enjoy it.

Now, if you are an Atlanta first time home buyer, call me for Atlanta’s best FHA loan – or any other loan that may work well for your circumstance. The important thing is – to not be a dave . Call me, let’s explore options.

Choosing the right mortgage loan can be daunting. Even for those who have bought and sold several homes over their lifetime, typically the time between financing a home is long, and each time the prospective buyer is left scratching their heads, asking, which type of loan is best for me?

This short video explains the types of loans, and hopefully will be a good primer on knowing the difference and choosing the right loan for you.

Buying a home around metro Atlanta soon? Well, then I hope you found this video helpful, and just to reiterate, I believe one of the best loans for this moment, right now, is a fixed rate mortgage.

At this point in my carreer I’ve helped somewhere in the 1000’s of first time home buyers around Atlanta to finance their home.  Most of those with FHA or Rural Housing loans – and some VA loans for those who have served our Country.

And, I enjoy it.  I enjoy the teaching aspect of sitting down and explaining the types of loans available, explaining what fees are involved, both recurring and non-recurring, and what the process will be from the moment of pre-approval to closing and beyond.

And, I enjoy the smiles on their faces when, at the closing table, when everything has been signed that needs a signature, the sellers slide the keys to their new house over the table.  You can almost see fireworks light up around them.

And, I am always amazed that about 5% of first time home buyers have the attitude that they simply cannot be bothered with the pre-approval meeting.  You see, buying a home is the largest indebtedness that most of us will ever take on in our lives.  It is a big commitment, and it can be quite advantageous to spend 45 minutes to really learn the in’s and out’s of obtaining and managing a mortgage.

Here are a few items I like to review:

• Ways a mortgage can aid or inhibit wealth creation
• Managing the debt, so it doesn’t consume you
• Buiding home equity and managing that
• pre-approval vs. pre-qualification
• Guarding your investment with the right insurance
• And, right now, how to qualify for an receive your $8000 tax credit

Time is flying by quickly to cash in on your $8000 tax credit for first time home buyers. As of this writing there are only 97 days left until the tax credit expires.  Because, to qualify for the $8000 tax credit, you need to close on the purchase of your home by November 30, 2009.

“Cash for Clunkers” is over.  Enter, Cash for Renters, the $8000 tax credit for first time home buyers.  But just like the narrow window of opportunity to turn in your clunker for cash, there is an equally narrow windo to claim your $8000 tax credit.  Realistically, if you are buying your first home around metro Atlanta, then you need to have an accepted contract by the end of October in order to close by the end of November.

And, think of this: if you buy a $200,000 home and finance it with an FHA mortgage, then your down payment is $7000.  Get the tax credit back, and you replace your down payment and have $1000 left to buy that new, big, cozy leather chair…or, just save the money in the bank for a rainy day.

And when we need to act quickly, the best way to avoid costly mistakes is with a proper education. So, mark your calendar for the one first time home buyer training that we have left:

Wednesday, September 2 @ 7:00pm
The 1818 Club 6500 Sugarloaf Pky, Duluth, GA 30097 – in the Gwinnett Chamber of Commerce Building

To buy your first home – quite possibly for less than you pay in rent – and get up to $8,000 in free money from the federal government for doing so, then sign up here to reserve your seat.

And, be ready to brag for years that YOU bought at the perfect time. Mortgage rates are at multi-decade lows, home prices have fallen, and the government is giving you $8000 to buy now.

I can only imagine the stories you will be telling your friends, gathered around you at the next party!

We are in a Perfect Storm right now.  First time home buyers around Atlanta right now have:

1. The highest home affordability factor since before 1970
2. The lowest mortgage interest rates since the 1950’s, thanks to the Fed buying mortgage baced securities
3. An $8000 federal tax credit for first time home buyers
4. An $1800 State of Georgia tax credit for buying a home

I announced on this blog recently that I was teaming with some real estate professionals from around Atlanta to launch a big, and very important initiative: Atlanta’s Million Dollar Challenge.

The goal is simple: To help 125 first time home buyers around Atlanta to purchase their first home by November 30, 2009.  That is the final day to close on home and receive the $8000 federal tax credit for first time buyers.  If we reach our goal of 125 buyers each receiving the $8000 tax credit, then we will have helped bring $1,000,000 of federal tax dollars into our community.

As part of our effort, we aim to educate Atlanta first time home buyers about the tax credit and what that will do for them; as well as the home buying process.  And, a series of seminars has been announced that will help facilitate this education process:

Event 1: Thursday, August 20  @ 7:00pm
Sheraton, 2844 Cobb Parkway SE, Atlanta, GA 30339 – Across from Cobb Galleria

Event 2:  Tuesday, August 25 @ 7:00pm
ROAM 5815 Windward Parkway, Alpharetta, GA 30005 – Across from Windward Marriott

Event 3:  Wednesday, September 2 @ 7:00pm
The 1818 Club 6500 Sugarloaf Pky, Duluth, GA 30097 – in the Gwinnett Chamber of Commerce Building

So, sign up to reserve your seat HERE.  And, we will see you at the event, and look forward to helping you receive your part of the $1Million Mortgage Challenge.  Sign up today!

I read just last week a study by the National Association of Realtors that fully 50% of the prospective first time home buyers did not know anything about the $8000 federal tax credit if they buy a home by November 30, 2009.

And my experience with Atlanta area first time home buyers?  The same.

So I want to pass along this FAQ sheet for first time buyers.  I found it quite informative.  Pass it on to a young renter, who is thinking of buying their first home: tax-credit-flyer1

A lot of talk has swirled around the $15K tax credit for all home buyers in 2009 that was proposed as part of the stimulus package.  

Then, reports were that the credit was paired back to $7500, but still all home buyers would receive the tax credit.  And, in committee, that morphed to an $8000 tax credit for first time home buyers only (i.e. anyone who has not owned a home in the past 3 years), who buy in 2009.

Still great for all the first time home buyers around metro Atlanta, where there are some excellent deals to be had.  But, just not what most real estate professionals were hoping for to jump-start the housing market.

But think of it this way:  if a buyer comes into the market, and has not filed their 2008 taxes as yet, then here’s what that buyer could do.  Find that perfect home in, say, Cobb county, with a purchase price of $228,500.  Come up with the necessary down payment of 3.5% to go with the very attractive FHA financing.  3.5% down payment on a home priced at $228,500 is, you guessed it, $8000.

Then, file their taxes and receive the tax credit of $8000, and the government will have subsidized their down payment for the home.  Not a bad deal at all, especially considering that homes are prices so attractively compared to just 2 years ago.