Atlanta Home Loan Case Study
Atlanta is a booming city with a population of more than 5.7 million people and an average cost of living that ranks among the lowest in the country. Home prices are on the rise, but still lower than many other major metros nationwide. The median sale price for homes in Atlanta is $250,000 as compared to San Francisco’s median sale price of $1 million or New York City’s median home sales price at nearly $500,000. For those looking to move from one metro area to another for work without breaking their budget, Atlanta may be your new best friend!
In this case study Solution, we will take a look at some of the benefits and drawbacks that come along with buying a home in Atlanta.
Case Study On Atlanta Home Loan
Summary
The financial crisis in 2008 that affected the entire world brought in its wake a massive recession. The economic fallout that followed also impacted housing prices blowing them out of all proportion. Despite this, Atlanta managed to retain its charm and bottomed out home prices started to rise sustainably by 2012.
Findings and Discussion
While the median price of homes in Atlanta currently stands at $150,000 it is expected to rise by 5% (Approximately) over the next few months. This has enabled many first-time homebuyers who were earlier struggling to find a house that they could buy now find themselves to be on equal footing as home buyers with traditional credit.
Many first-time homebuyers are left astounded by the low-interest rates offered on Home Loans for people with bad credit. For example, an individual looking to buy a $200,000 house with zero money down* will only have to pay around $550 per month towards his or her home loan which comes out to around 36% of their income.
Additionally, this also means that the individual will not have to pay any private mortgage insurance (PMI) or make any initial down payments.
However, while the interest rates on Atlanta Home Loans are seemingly very low, it is advised that people with bad credit should shop around for the best deals in order to get the lowest rate possible. This ensures that you end up saving yourself some money by making intelligent choices when it comes to picking a loan.
Conclusion
Falling home prices encourage prospective homeowners to buy before home prices start rising again. When you are looking for a house, whether or not your credit is bad or good, you should consider the following factors:
Home loans with zero down payment offer more freedom than traditional mortgages because there is no financial commitment at first. However, borrowers need to be aware of PMI, which will cost them if the loan-to-value ratio on their new mortgage exceeds 80%.
You can find affordable housing in Atlanta, even if your credit is less than perfect. The risk that lenders incur when they issue Home Loans For People With Bad Credit means that borrowers can get better interest rates and lower fees on chance mortgages than on conventional first mortgages.
Recommendation
If you are in Atlanta and looking for a house whose price falls in the lower end of the spectrum with bad credit, you might want to consider applying for an FHA loan. The interest rates for FHA Loans are generally lower than conventional mortgages, and because you do not have to immediately put down a percentage of the price, you will be able to avoid paying PMI.
Implementation
Take advantage of the lower down payment options available to first-time homebuyers. The best way to do this is by applying for an FHA Loan, which offers low-interest rates and fees, as well as no PMI.
Increase your credit score over time by paying all your bills on time and never maxing out any lines of credit. This will improve your chances of obtaining a better mortgage in the future even if you have bad credit.
