This program is a good option for first time homebuyers who do not have the money to pay upfront at closing for the down payment, but there are some pitfalls that do not get discussed. I thought I did my research before choosing this program, but there were a few things I did not fully understand, and it impacted me after closing.
Don’t be like me, know as much as you can BEFORE you sign.
Questions to ask your loan officer:
- What will escrow be responsible for paying vs. you?
- When will your annual assessment be done?
- If you are unhappy with your annul assessment because it caused a large increase in your mortgage payment, how can you decrease it?
- When should you file for Homestead Exemption?
- If you apply for Homestead Exemption, when can you expect the changes in your taxes to impact your escrow payment?
- Are you able to make a larger payment amount to your escrow at closing?
- Who will own your loan after closing?
- Is it worth waiting until you have the 20% down payment for the house instead of using the Georgia Dream Program based on your personal financial situation?
The last question is really hard for some people to ask their loan officer. I know homeownership has been sold to Americans as the ultimate dream, but there are a lot of factors that go into being a homeowner and the first one is finances. IF you can wait to buy a house and save up for the down payment, you may be better off financially in the long-run. During your home buying process, you should make sure to surround yourself with people who you feel comfortable with asking questions and getting real answers on what to expect.
At the end of the day, it is YOUR money and you should have full control over it.
