Ready to buy a home in the Peach State?
With a varying climate and distinct seasons, and a rapidly growing job market centered in Atlanta, Georgia, offers a comfortable lifestyle with great job opportunities. Your dream home could be a starter home in Atlanta or an affordable single-family house in Macon.
Whether you’re a first-time homebuyer or new to Georgia’s housing market, this guide will teach you everything you need to know. We’ve broken down the entire home-buying process into 13 actionable steps.
Key Takeaways:
- Get Pre-Approved ASAP: In a buyer’s market like Georgia, a pre-approval letter helps you stand out.
- Save Thousands with Assistance Programs: Programs like “Georgia Dream” offer down-payment and closing-cost assistance of up to 5% of the purchase price or $10,000 and up to 6% or $12,500 for all eligible buyers.
- Don’t Skip Georgia Specific Inspections: Georgia doesn’t require a 4-Point Inspection, but insurers often check the roof, HVAC, electrical, and plumbing in older homes. Upgraded systems and newer roofs can qualify you for premium discounts.
- Ask for Credits, Not Repairs: If the inspection has issues, ask the seller for credit at closing. This allows you to hire your own contractors and prevent closing delays.
- Protect Your Investment and Your Wallet: Flood insurance is needed in Georgia if you live in a high-risk flood area. Don’t forget to file for the Homestead Exemption to save an amount that is $2,000 deducted from the 40% assessed value of your home.
How to Buy a Home for the First Time in Georgia: 13 Steps!
This step-by-step guide walks first-time home buyers in Georgia through everything, from assessing finances and budgeting for a down payment to choosing the right mortgage. These 13 steps make the Georgia real estate process clear, simple, and manageable.
Step 1: Assess Your Finances
As a first-time home buyer in Georgia, the two factors that should matter the most to you are your credit score and Debt-to-Income (DTI) ratio. Additionally, you must also consider how much you can afford for a down payment, a monthly mortgage, taxes, and insurance.
What Is Your Credit Score?
A credit score is a three-digit number that indicates your creditworthiness to lenders. The minimum credit score to buy a house in Georgia depends on the type of mortgage you get.
Minimum and Ideal Credit Scores by Loan Type
| Loan Type | Minimum Score | Ideal Score |
|---|---|---|
| FHA | 500 (10% down) | 580+ (3.5% down) |
| Conventional | 620 | 740+ for best rates |
| VA | No official minimum; 620 preferred | 620+ preferred |
| USDA | No official minimum; 640 preferred | 640+ preferred |
Portfolio mortgage loans are easy to qualify for. Here, the credit score needed to buy a house starts at around 580. VA loans are available only to veterans and active-duty service members, and require a score of 620. FHA loans also accept scores as low as 580. They are good for buyers with lower credit scores looking for houses in Georgia.
When purchasing property in Georgia, you can check your credit score using several reliable methods. Most of them are free and will not harm your score:
- Annual Credit Reports: Federal law entitles you to one free credit report every 12 months from each of the three major credit bureaus: Equifax, Experian, and TransUnion. These can be accessed through the official, government-authorized website, AnnualCreditReport.com.
- Credit Monitoring Services: Many banks, credit card issuers, and financial service apps provide complimentary and regular access to the FICO score. This is a convenient way to track your credit health over time.
Knowing how to repair your credit score is important to get better mortgage rates. If you’re a first time home buyer in Georgia, here’s what you need to do:
- Pay down credit card balances and make all payments on time.
- Avoid opening multiple new accounts quickly.
- Consider becoming an authorized user on a family member’s account with a good history.
- Monitor your score regularly to track progress.
How to Calculate Your Monthly Mortgage Payment in Georgia?
As a first time home buyer in Georgia, knowing your average mortgage payment helps you plan your budget. Your total payment includes 4 key components, often called PITI:
- Principal and Interest: This is a major chunk of your payment, covering the amount you borrowed (principal) and the cost of borrowing (interest). It’s determined by your loan amount, interest rate, and loan term.
- Taxes: Georgia property taxes are based on your home’s assessed value. The lender holds these funds in an escrow account and pays the tax on your behalf.
- Insurance: Lenders require you to have homeowners’ insurance to protect the property. The annual premium is usually divided by 12 and added to your monthly payment, also managed through the escrow account.
Apart from PITI, your monthly payment may also include Private Mortgage Insurance if your down payment is less than 20%, and HOA fees.
What Is a Debt-to-Income (DTI) Ratio?
Your debt-to-income ratio shows how much of your monthly income goes toward debt payments, including mortgage, car loans, credit cards, and student loans. To calculate it, add all monthly debts and divide the total by your gross pre-tax monthly income.
A high DTI can prevent you from qualifying for a mortgage, as it shows that you struggle to manage your debt. For the best mortgage rates and a higher likelihood of mortgage approval in Georgia, aim for a DTI ratio of 36% or lower.
💡 You can still qualify for a loan in Georgia despite a high DTI if you have compensating factors like a strong credit history, significant cash reserves or savings, stable long-term employment, etc.
| Loan Type | Recommended DTI Ratio | With Compensating Factors |
|---|---|---|
| Conventional | 36% back-end | 45-50% |
| FHA | 43% back-end | Up to 50% |
| VA | 41% | Can exceed 50% with the residual income test |
| USDA | 41% back-end | 44% with strong credit |
To improve your DTI ratio for a mortgage, you can either reduce your monthly debts or increase your verifiable income.
- Pay Down Debt: Use a tax refund or bonus to clear smaller loans, or consolidate multiple debts into a single loan with a lower monthly payment.
- Increase Verifiable Income: Ask for a raise, take on part-time work, or start a side business. Include all consistent income sources on your application, such as bonuses or commissions, but remember that lenders require a two-year history for secondary income.
- Adjust Your Housing Budget: A larger down payment reduces your loan amount and your monthly mortgage payment. You can also consider a lower home purchase price to keep your future housing costs down.
Step 2: Budget for Your Down Payment and Closing Costs
You should set aside money for the down payment and closing costs. Georgia’s first time home buyer programs help make homeownership accessible and affordable.
How Much Down Payment Does a Georgia First Time Home Buyer Need?
Typically, the down payment on a house for a first time home buyer in Georgia usually ranges from 3% to 20% of the property’s price. However, it can vary based on the loan type. FHA loans require just 3.5% down, while some conventional loans allow a 3% down payment.
To help with these upfront costs, there are many state and local down payment assistance programs in Georgia. They provide grants or loans to cover these expenses.
👉 First-Time Home Buyer Programs in Georgia: Find out which is the #1 downpayment assistance program in the Peach State.
How to Estimate Closing Costs in Georgia?
Closing costs are fees and expenses paid at closing beyond your down payment. Typically, buyer closing costs in Georgia usually range from 2% to 5% of the home’s price. So, for a $373,500 home, buyers might pay $7,470 to $18,675.
These fees cover lender charges, appraisals, inspections, title insurance, taxes, agent commissions, and recording fees when buying a house in Georgia.
Step 3: Get Pre-Approved for a Mortgage
Secure your financing early by getting pre-approved for a mortgage as a first time homebuyer in Georgia. This step helps you understand your budget and strengthens your offer when you buy a home in Georgia.
How to Get Pre-approved as a First Time Home Buyer in Georgia?
You need to follow these steps to get pre-approved when buying a house in Georgia:
- Gather Financial Documents: Provide proof of income (recent pay stubs and W-2s), tax returns (last two years), asset statements, debt information, and a government-issued ID.
- Choose a Lender and Apply: Compare lenders in Georgia and submit a mortgage application to get the best rates and terms.
- Receive Pre-Approval Letter: The lender verifies your info and issues a letter stating your approved loan amount, usually valid for 30–90 days.
A mortgage preapproval turns you from a casual house hunter to a serious buyer in Georgia, as it:
- Strengthens Your Offer: 86% of the sellers prefer buyers with a pre-approved mortgage. For the strongest position, ask for a fully underwritten pre-approval, where the lender has already verified all your documents.
- Defines Your Budget: It clarifies exactly how much you can afford, allowing you to focus your home search on a realistic price range.
- Speeds Up Closing: With much of the financial vetting already completed, the mortgage process is streamlined once your offer on a home is accepted.
Yes, you can get pre-approved and even buy a home with bad credit in Georgia. However, your loan options may be limited. You can also expect higher interest rates with poor credit.
Step 4: Choose the Right Mortgage
As a first time homebuyer in Georgia, assess your finances and select a loan that fits your budget and qualifies you for available programs.
| Feature | Conventional | FHA | VA | USDA |
|---|---|---|---|---|
| Min Credit Score | 620 | 580 (500 w/10% down) | No minimum | 640 |
| Min Down Payment | 5% to 20% | 3.5% | 0% | 0% |
| Max DTI | 45% to 50% | 43% to 50% | 41%+ | 41% to 44% |
| Mortgage Insurance | PMI if <20% | Always | None | Always |
| Loan Limits | $806,500 (most GA counties) | $524,225 to $688,850 (varies by county) | $806,500 | Varies |
| Property Eligibility Criteria | Most properties | Must meet FHA standards | Must meet VA standards | Rural/suburban areas only |
Step 5: Decide Where to Buy a Home in Georgia
Deciding where to buy is one of the most important steps for a first time homebuyer in Georgia. Consider factors like local housing markets, popular neighborhoods, cost of living, and amenities to help you find the best places to live in Georgia.
Why Now Is the Time to Buy in Georgia
The Georgia housing market is a buyer’s market. You now have more negotiating power and a wider selection of properties to choose from:
- Housing Supply is High: Georgia has a 4-month housing supply, which represents a balanced market, leaning towards the buyers’ side.
- Prices Have Stabilized: The median home price has remained relatively constant at $373,500. This allows you to set your budget with more certainty.
- Sellers are Negotiating: 31.1% of homes in Georgia have seen price drops, signaling increased seller flexibility.
- Homes are on the Market Longer: Properties are taking an average of 63 days to sell, which allows you to make more informed decisions.
These trends show that now is the best time to buy a house in Georgia. According to Mauricio Umansky, founder of The Agency, the current market provides “great opportunities for buyers to be aggressive and write strong offers.”
Popular Areas for Different Buyer Types
With the market now in your favor, you can be more selective about where you buy. Use this advantage to find a neighborhood that matches your priorities, whether it’s schools, commute, or lifestyle.
- Best Areas for Families: Because of their high-quality schools and safe environment, neighborhoods including Johns Creek, Milton, Peachtree City, and Suwanee are popular choices. View homes for sale in Johns Creek, GA, if you’re searching for spacious residences with easy access to excellent facilities. The usual price range for properties in these locations is $390,000 to $750,000.
- Best Areas for Retirees: Retirees frequently select locations like Macon, Athens, and Savannah because they provide a relaxing lifestyle that combines culture, charm, and affordability. Savannah is an ideal destination for what retirees are looking for. Consider homes for sale in Savannah where prices range from $200,000 to $350,000.
- Best Areas for Young Adults: Cities like Atlanta and Athens offer thriving job markets and vibrant social scenes. If a fast-paced, urban lifestyle is what you seek, browse the latest Atlanta houses for sale, where you can find modern condos and trendy lofts around $180,000 to $300,000.
Consider the Cost of Living When Choosing a Location
When looking for the best place to buy a house in Georgia, consider the overall cost of living, as lower home prices can be offset by higher taxes or insurance.
- High-Cost Areas: Atlanta and parts of Fulton, Cobb, and Gwinnett counties are 8% above the national average.
- Moderate-Cost Areas: Athens and Savannah are near or just above 2% the national average.
- Low-Cost Areas: Macon, Columbus, and Albany are up to 11% below the national average.
Step 6: Start House Hunting in Georgia
Once you’re pre-approved and know where you want to live, the next step is finding the right house. As a first-time home buyer in Georgia, you have two options:
- Work with a Realtor.
- Search for homes online.
An experienced agent can give you valuable local insights and expert guidance on neighborhood trends. However, you’ll have to negotiate the buyer agent commission with the seller, which may raise the home sale price.
If you prefer to take the lead, a high-tech platform like Houzeo is what you need. Whether you’re looking for beachfront mansions, high‑rise penthouses, spacious big homes, or luxury homes in Georgia, Houzeo has you covered. You can browse through thousands of listings, set alerts, and save your search. You can even schedule showings and submit offers, all by yourself.
Don’t Just Browse. Buy.
Your entire home purchase, managed in one place.
Download the Houzeo Mobile AppStep 7: Schedule and Attend Home Showings
After you narrow down your list of potential homes, schedule and attend showings to see each property in person. For a first-time home buyer in Georgia, visiting homes firsthand helps you evaluate condition, layout, and neighborhood, ensuring you make an informed choice.
During the showing, ask specific questions like:
- How long has the home been on the market?
- Why is the owner selling?
- What is the age of the roof, HVAC system, and water heater?
- Are there any HOA fees or pending special assessments?
- Is the property in a high-risk area for hurricanes, flooding, tornadoes, or wildfires?
When buying a home in Georgia for the first-time, check the property carefully during the open house. Look for roof sagging, foundation cracks, water stains, uneven floors, or sticking doors, which may indicate serious issues.
As a first time home buyer in Georgia, there are three main aspects you need to focus on when shortlisting homes:
- Insurance Risks: Verify the home’s flood zone using FEMA’s maps. Get a 4-point inspection and a wind mitigation report to assess insurability and identify features, like an old roof or the lack of impact windows in some coastal areas, that could drive up insurance costs.
- Commute and Lifestyle: Test your commute during rush hour. Visit the neighborhood at different times to check for noise from traffic, airports, or nightlife. Ensure convenient access to key amenities like schools, groceries, and parks.
- Georgia Home Loans/Assistance Program Eligibility: If you’re applying for a loan or first time buyer program in Georgia, ensure that the house complies with its property requirements, or you may risk losing the assistance.
Step 8: Make an Offer
When crafting an offer, make a competitive bid but stay within your budget. As a first-time home buyer in Georgia, consider factors like the home’s market value, recent comparable sales, and any repairs needed. This increases your chances of getting a fair deal.
Step 1: Analyze Recent Sales
Your agent will pull up real estate comps that are similar to the one you want. Focus on the final sale price, not the list price. Home prices in many Georgia metro areas have seen modest declines, so your offer should reflect this trend.
Step 2: Adjust for the Home’s Condition
Factor in the age and condition of the roof and HVAC. If a comparable home sold for $373,500 but had a new roof, and your target home needs a $20,000 replacement, adjust your offer to account for that expense.
Step 3: Factor in Today’s Market
With more homes for sale, you have leverage. Even home builders are lowering their prices by almost 6% to attract buyers. So, for a home that is priced fairly, offer 3% to 5% less. If it is overpriced, you can justify an even lower offer, citing both the comps and market trends.
What is an Earnest Money Deposit in Georgia?
An earnest money deposit is a “good-faith” payment that shows you are a serious buyer. This money is held in escrow and applied towards your down payment at closing.
In Georgia, the standard deposit is 1% to 5% of the purchase price. On a $373,500 home, this would be between $3,735 and $18,675. In highly competitive Georgia markets like Atlanta’s Buckhead or Alpharetta, sellers may expect an earnest money deposit closer to 5%–10% of the purchase price.
Once your offer is accepted, you typically have 3 business days to submit the deposit to an escrow agent, such as a title company or real estate attorney.
Yes, you can get your earnest money deposit back in Georgia, but only if you back out of the sale for the following reasons:
- The inspection reveals major issues, and you exercise the inspection contingency.
- The appraisal comes in low, and you exercise the appraisal contingency.
- You’re unable to secure the required financing, and exit during the financing contingency period
- Title issues are discovered.
Many Georgia first-time home buyers forfeit their earnest money because:
- They back out after the contingency periods expire without a valid reason.
- They violate contract terms.
- The seller meets all contract obligations, but the buyer still refuses to close.
Step 9: Conduct Home Inspections
First-time home buyers in Georgia should schedule home inspections to uncover any issues before buying a house. You typically get the inspection report within 24 to 48 hours.
Which Georgia Home Inspections Should You Schedule?
A standard home inspection in Georgia isn’t enough. The state’s unique climate and weather risks require a few specialized inspections:
- General Home Inspection ($300–$500): A licensed inspector will examine everything from the roof to the foundation. They pay special attention to storm damage, proper drainage, and the age of the AC unit.
- 4-Point Inspection ($85–$125): Most insurance companies require a 4-point inspection for homes over 30 years old. It focuses on the four most critical systems: the roof, HVAC, electrical, and plumbing. An old roof or an outdated electrical panel can result in the insurance coverage being denied.
- Termite/WDO Inspection ($75–$150): Due to Georgia’s warm and humid climate, termite infestations are common and can cause severe structural damage. A Wood-Destroying Organism (WDO) inspection is essential, especially for FHA, VA, and USDA loans.
Consider Other Specialized Inspections
Based on the property, a Georgia first-time home buyer may want to conduct additional tests. For older homes, a sewer scope can detect cracks and roots in the main sewer line, saving you from a $15,000 repair down the road. If you see large cracks or uneven floors, a $700 foundation inspection is worth the investment.
For rural properties, a septic inspection is essential. If the home has a pool, a separate pool inspection will check the pump, filter, and structure for costly defects.
Radon Inspection (cost varies): Radon gas exposure can be a risk in some areas of Georgia. While not required by law, radon testing is suggested to ensure indoor air quality and safety.
Mold and Moisture Inspection (optional): With Georgia’s humidity, moisture intrusion and mold growth can be issues in homes. Specialized inspections can identify hidden mold or poor ventilation problems.
It’s not recommended. Even if you plan to buy cheap homes in Georgia, skipping a home inspection can lead to unexpected repair costs.
Step 10: Complete the Home Appraisal
After the inspection, your lender will typically order a home appraisal, which professionally values the property to ensure it matches your offer.
Why Do Lenders Need Appraisals?
A home appraisal in Georgia confirms the property’s market value. Appraisers typically focus on the following parameters:
- Flood Zone and Elevation: In areas near the coast (like Savannah) or along major river basins (like the Chattahoochee), homes in FEMA-designated flood zones may appraise lower because of required flood insurance and mitigation costs.
- Insurance and Mitigation Features: In Georgia, the age and condition of the roof, the presence of wind-resistant materials, and recent updates to electrical or plumbing systems can directly impact a home’s insurability and market value, especially in areas prone to thunderstorms.
- Condo/HOA Health: Appraisers closely examine a condo association’s financial health. They look for anything that may reduce the unit’s value, like the association’s reserve funds or any pending special assessments.
A standard appraisal in Georgia costs between $350 and $650 and typically takes 7 to 14 days to complete. For high-value homes or properties in coastal areas like Savannah or Tybee Island, appraisal costs and timelines may be higher due to added complexity and demand.
If the appraisal comes in lower than your offer price, you have an appraisal gap. In such a situation, you can either:
- Renegotiate the Price: Ask the seller to lower the price to the appraised value. In the current market, many sellers are willing to negotiate.
- Cover the Gap: If the seller won’t budge, you can choose to pay the difference in cash.
- Dispute the Appraisal: If you believe the appraiser made a factual error or used poor comparable sales, you can file for a Reconsideration of Value.
- Walk Away: If you cannot reach an agreement, your appraisal contingency allows you to cancel the contract and get your earnest money back.
Step 11: Negotiate Repairs and Credits
As a first-time home buyer in Georgia, use your home inspection results to negotiate repairs and request credits from the seller. This step can help reduce unexpected costs and ensure your new house is move-in ready.
How to Use Your Inspection Report to Negotiate Repairs?
Your negotiation strategy should center on issues that impact the home’s safety, structural integrity, and insurability. Minor cosmetic flaws are not worth fighting over and can make you seem unreasonable. It’s easy to make this mistake as a first home buyer in Georgia.
Focus your request on these critical areas:
- Safety Hazards: This includes outdated and dangerous electrical panels, faulty wiring, or missing safety features like GFCI outlets near water.
- Structural Problems: Any issues with the foundation, load-bearing walls, or the roof structure.
- System Failures: A failing HVAC system, major plumbing leaks, or an old roof.
Get 2 to 3 written estimates from licensed contractors for any major repairs. A repair request that includes professional quotes shows you are serious and have done your homework.
Should You Ask for Repair Credit?
While you can ask the seller to perform the repairs themselves, it’s better to ask for credit instead. Credit gives you the funds to hire your own contractors and ensures the work is done to your standards, not just the cheapest way possible. It also allows the sale to proceed on schedule, without any delays.
How to Negotiate Seller Concessions
Seller concessions are a powerful tool for reducing your out-of-pocket closing costs when buying real estate in Georgia. Here, the seller pays for some of your expenses, such as the appraisal, title insurance, or property taxes.
Your ability to negotiate concessions depends on your loan type. Each loan program sets a maximum limit on how much a seller can contribute:
| Loan Type | Minimum Down Payment | Maximum Seller Concession |
|---|---|---|
| Conventional | Less than 10% | 3% of the purchase price |
| Conventional | 10% or more | 6% of the purchase price |
| FHA Loan | 3.5% (typical) | 6% of the purchase price |
| VA Loan | 0% (no down payment required) | 4% of the purchase price plus normal closing costs |
| USDA Loan | 0% (no down payment required) | 6% of the purchase price |
Step 12: Review Your Closing Costs
After negotiating repairs and credit as a first time home buyer in Georgia, review all closing costs carefully. Check title fees, escrow, insurance, and taxes so you can finalize your budget and confidently buy your house.
Understanding Closing Costs in Georgia
- Georgia-Specific Taxes ($100-500+): Georgia has a real estate transfer tax and recording fees that vary by county. The real estate transfer tax can be around $1 per $1,000 of the sale price, and recording fees also apply. These taxes typically range from $100 to several hundred dollars.
- Title Fees ($2,000+): These fees cover the title search, settlement services, and title insurance policies for both you and your lender. In Georgia, the party responsible for paying the owner’s title insurance varies by county.
- Third-Party Fees ($1,000 to $1,500): This category includes the appraisal fee, credit report fee, and flood certification fee. It also covers any inspections you ordered, like the general, 4-point, and WDO inspections.
- Prepaid and Escrow Costs ($3,000 to $6,000): You will pay for your first year of homeowners’ and flood insurance upfront. You will also fund your escrow account with several months of property tax and insurance payments to cover future bills.
Step 13: Close on Your New Home
Closing day is the moment you officially become the owner of your new Georgia home. Its success depends on a careful final walk-through, a smooth funding process, and making sure all legal documents are properly signed and recorded.
Complete Your Final Walk-Through
Within 24 hours of closing, you will do one last walk-through of the property. This is not a formal inspection, but rather your final chance to see if you want this home. Use this checklist:
- Verify Repairs: Bring your inspection report and repair addendum. Confirm that all negotiated repairs have been completed to a professional standard.
- Test Everything: Run the air conditioning and test all appliances. Make sure every system is functioning as it should.
- Check for Included Items: Ensure all items that were supposed to be included in the sale, like appliances, window treatments, and light fixtures, are still in place.
- Look for Signs of Additional Damage: Make sure no new damage has occurred since your last visit. If you see any issues, notify your agent and the title company immediately before you sign any documents.
Sign the Documents
While there are numerous documents to sign, the most important ones are:
- The Closing Disclosure: You will sign the final version of this document, which outlines all your loan terms and costs.
- The Promissory Note: This is your legal promise to repay the loan. The promissory note outlines the loan amount, interest rate, repayment schedule, and maturity date.
- The Mortgage: This document secures the property as collateral for your loan.
Once you have signed everything, you will provide your “cash to close” amount via a cashier’s check or wire transfer. After your lender sends their funds to the title company, the deal is officially funded.
Get Your Keys and Celebrate
Once the deal is funded, the title company will record the new deed with the county, officially transferring ownership to you. After they pay the seller and other parties, you will finally get the keys to your new home.
Congratulations, you are officially a Georgia homeowner! 🎉
🚩 What are the Red Flags to Look for When Buying a House in Georgia?
A new home is a huge financial investment. To ensure that you don’t sink your money into a dud, look out for these red flags:
1. Bargain-Priced Homes
An asking price that’s significantly lower than comparable homes in the area seems like a dream come true. But that’s just until the roof collapses or faulty electrical systems burn the house down.
An extremely low price could mean the property is uninsurable, or is located in a high-risk flood zone with steep insurance costs. So before you put in an offer, check the home’s sale history and other permits from the local county’s office. Also, get insurance quotes to understand your total expense better.
2. Neighborhood Sell-Out
During the open house, if you notice too many “For Sale” signs on a single street or in a small community, it should ring alarm bells. It could be due to skyrocketing HOA fees, declining school quality, or a recent increase in crime rates. It could also point to a future nuisance, like a commercial development planned nearby.
Talk to potential neighbors to get their opinion on the area. You can also check community social media pages or online forums like Nextdoor for discussions about local issues.
3. Excessive Use of Air Fresheners
A few scented candles create a welcoming atmosphere, but if a home smells like a lavender bubble burst in it, then there’s something fishy. It may be covering up a musty smell that highlights the presence of mold and plumbing issues.
Pay close attention to the smell in the closets, bathrooms, and around the air conditioning unit. Open kitchen and bathroom cabinets and smell the area under the sink. If you detect a musty odor, ask for a separate mold inspection along with the standard home inspection.
4. Sloping or Uneven Floors
Due to Georgia’s clay-rich soil that expands and contracts, foundation issues can develop over time. Minor settling may be acceptable in older homes, but significant slopes signal a major structural issue.
Bring a marble or a golf ball with you to showings and place it on the floor in different rooms to see if it rolls. Also, look for other signs of foundation issues, like large zigzag cracks in the drywall, especially above door frames.
5. Condensation in Windows
Fog trapped between the panes of double-glazed windows is a sign that the seal has failed. When the seal breaks, the insulating argon gas leaks out and is replaced by moisture-filled air. This means higher heating and cooling bills, especially relevant in Georgia’s hot summers.
Inspect each window and pay special attention to those that receive direct sunlight, as heat can cause seals to fail faster. If you see failed seals, get a quote for window replacement to use as a negotiating point.
6. Polybutylene Plumbing
Between 1978 and 1995, many Georgia homes, especially in Monroe were fitted with polybutylene pipes, once hailed as a cheap plumbing alternative. But over time, these gray, flexible pipes react poorly to water treatment chemicals, becoming brittle and prone to sudden failure.
If you spot gray plastic pipes marked “PB2110,” particularly near the water heater or in crawl spaces, that’s a serious red flag. Insurers often refuse coverage for homes with these pipes, and replacement can cost thousands.
What Should You Do After Closing?
Welcome home! Now it’s time to handle a few must-dos to protect your investment:
- File for Homestead Exemption: If the house is your primary residence, apply for Georgia Homestead Exemption to reduce your property taxes. The standard statewide exemption is a $2,000 deduction from the 40% assessed value
- Set Up Utilities: Get the water, electric, internet, and trash services connected. Don’t forget pest control, especially in Georgia’s humid climate, where moisture can affect your roof, basement, and crawlspaces.
- Get Insurance: Homeowners insurance is required if you’re financing, and you may need additional coverages such as wind/hail endorsements or separate flood insurance if your property is in a high-risk zone.
- Home Maintenance Plan: Georgia’s climate puts extra stress on systems: schedule HVAC tune-ups, clean gutters, inspect roofs for moss/algae buildup or moisture damage, and maintain proper grading and drainage around your foundation.
How to Buy a House in Georgia Without a Realtor?
Research neighborhoods and browse listings on trusted sites like Houzeo. Then, schedule showings directly with sellers or their agents. You can also hire a real estate attorney to review contracts and handle legal details.
Next, get pre-approved for a mortgage, make an offer, schedule inspections, and negotiate repairs. With the necessary due diligence, you can buy a house without a Realtor.
Which First Time Home Buyer Programs in Georgia Can You Apply For?
Various programs make homeownership accessible for a first time home buyer in Georgia. They assist with down payments through grants or low-interest, deferred-payment loans. Applicants must meet the income and credit score criteria and complete a homebuyer education course to avail home buying programs in Georgia.
| Program Name | Eligibility | Grants | Key Benefit |
|---|---|---|---|
| Georgia Dream Homeownership Program | First-time homebuyers; income limits apply | Up to $10,000 down payment assistance at 0% interest | Works with FHA, VA, USDA, and Conventional loans; 30-year fixed-rate mortgage |
| Peach Plus | FHA loan borrowers, higher income and purchase price limits; homebuyer education required | Up to $12,500 in down payment assistance | Higher income limits; supports repeat buyers |
| DreamMaker Home Purchase Assistance (Savannah) | Buyers in the Savannah city limits | Deferred payment 0% interest loan up to $30,000 for down payment | Larger assistance for eligible buyers |
| Peach Advantage | First-time and repeat Buyers | Higher purchase price limits | Expands options for buyers beyond traditional first-time constraints. |
| Peach Select | Any veteran who qualifies for a traditional Georgia Dream VA loan | Below-market, fixed interest rate | Lower credit and down payment requirements |
1. Georgia Dream Homeownership Program
- Eligible Buyers: Must be a first time homebuyer with certain income limits or buying in certain targeted areas.
- Credit Score: Minimum 640 for most applicants..
- Assistance: Down payment assistance through a 0% interest
The Georgia Dream Homeownership Program is administered by the Georgia Department of Community Affairs (DCA). It helps low-to-moderate income individuals become homeowners through options like a 0% interest down payment assistance loan and a lower interest rate.
To qualify, applicants must meet income and asset limits, have a minimum credit score, and complete a homebuyer education course.
2. Peach Plus
- Eligible Buyers: All aspiring homebuyers who qualify for either an FHA or a VA loan.
- Credit Score: Minimum 640.
- Assistance: Standard assistance offers 3.5% of the purchase price or up to $10,000, and up to 4% of the purchase price or $12,500 for PEN and Choice[special cases].
The Georgia Dream Peach Plus is a homeownership loan program offered by the Georgia Department of Community Affairs (DCA). It provides a first mortgage and down payment assistance to qualified borrowers who may not meet the requirements for the traditional Georgia Dream program.
3. DreamMaker Home Purchase Assistance (Savannah)
- Eligible Buyers: First-time buyers who are approved for bank loan or by a mortgage company.
- Credit Score: Determined by primary lender.
- Assistance: The program offers a deferred payment loan (2% interest, 30-year deferred payment).
The DreamMaker Home Purchase Assistance program in Savannah provides first-time homebuyers with deferred payment loans to help with down payments, closing costs, and gap financing. The program is specifically for purchasing homes within the Savannah city limits.
4. Peach Advantage
- Eligible Buyers: Both first-time and repeat homebuyers, with higher income limitations
- Income Limits: Household income up to 150% of the Area Median Income
- Assistance: Offers assistance from 0% up to 5% of the first lien amount, which can be used for the down payment and closing costs.
The Peach Advantage program offers valuable assistance in the form of a 0% interest, deferred second mortgage to cover up to 5% of the first lien amount. It can then be applied toward the down payment and closing costs.
5. Peach Select
- Eligible Buyers: Any borrower who qualifies for a traditional Georgia Dream VA Loan.
- Credit Guidelines: 640 or higher.
- Assistance: It offers a below-market, fixed interest rate on a 30-year mortgage to eligible veterans.
The Peach Select is an exclusive initiative for military veterans, offering an affordable 30-year fixed-rate mortgage with a below-market interest rate. It allows previous homeowners to qualify, provided they meet specific credit (minimum 640), income, and purchase price limits.
» First Time Buyer Programs: Find the perfect program that helps you get the key to your first home
What Should You Know Before Buying a House in Georgia?
Before you buy a home in the Peach State, you must understand the factors that can impact your budget and lifestyle.
What are Some Additional Costs When Buying Houses in Georgia?
Apart from the purchase price, you must account for several other expenses, like property taxes and potential HOA fees. However, the most critical consideration for any Georgia homebuyer is insurance.
- Why Homeowners Insurance is Crucial: Georgia’s susceptibility to hurricanes, floods, and other natural disasters like wildfires makes homeowners’ insurance important. This coverage protects your investment from catastrophic damage.
- High Insurance Costs: Due to these risks, the average annual cost of homeowners’ insurance in Georgia can approach $3,200 to $3,500, depending on location and home condition.This is still higher than national norms in some areas.
- Choosing the Right Policy: When selecting a policy, ensure it provides adequate storm and flood coverage. You could lower your premium by choosing a home with wind mitigation features like impact windows or a newer roof.
Do You Need Separate Flood Insurance in Georgia?
Yes, you may. Standard homeowners’ insurance does not cover flood damage, so a separate policy is necessary for protection. FEMA maps determine your property’s flood risk:
| Flood Zone | Risk Level | Insurance Recommendation |
|---|---|---|
| A, AE, V, VE | High-Risk | Flood insurance is required if you have a federally backed mortgage. These zones are common along the Georgia coast (e.g., Savannah, Brunswick) and near major rivers. for most mortgages. |
| B, C, X | Low-to-Moderate | Not mandatory but highly recommended. Nearly one-third of flood insurance claims in Georgia come from properties outside high-risk zones. |
When is Flood Insurance Required?
Whether you need flood insurance typically depends on your property’s location, your mortgage lender, and your homeowners’ insurance provider. There are two main situations where flood insurance is advised:
- Federally-Backed Mortgages in High-Risk Zones: If your home is in a high-risk flood zone and you have a federally-backed mortgage, federal law requires you to have flood insurance.
- Citizens Property Insurance Policies: Even outside high-risk areas, your mortgage lender may still require flood insurance based on the home’s elevation, proximity to rivers or creeks, or past flood history.
No, as wildfire damage is generally covered by standard homeowners’ insurance policies.
Why First-Time Homebuyers Should Explore Georgia Now?
Due to its growing urban and suburban areas and affordable real estate market, Georgia is a smart option for first time homebuyers. Georgia has something for every lifestyle and budget, from Atlanta’s booming job sector to Savannah’s historic seaside beauty.
With so many houses for sale and so many down payment assistance programs available throughout the state, it’s easier than ever to become a homeowner in the Peach State.
» Houzeo Reviews: Read what customers have to say about Houzeo, Georgia’s best home buying website.
