24 First-Time Home Buyer Mistakes in Georgia to Avoid

Key takeaway

The costliest first-time home buyer mistakes in Georgia come from contract deadlines and wrong assumptions: letting the due diligence period lapse, assuming 20% down is required (NAR's 2025 median for first-time buyers was 10%), treating Georgia Dream assistance as a grant, and missing the April 1 homestead deadline. Below are 24 mistakes, grouped by stage, each with what to do instead and the Georgia rule behind it.

At a glance

Median first-time down payment (NAR 2025)	10%
Loan Estimate due	Within 3 business days of application
Closing Disclosure due	At least 3 business days before closing
Homestead filing deadline	April 1
Transfer tax on $406,860	$406.90

Mistakes before you start looking at homes

Most expensive mistakes happen before a buyer ever tours a house: a wrong assumption about down payment, help or eligibility that shapes every decision after it.

1. Assuming you need 20% down

Twenty percent is not the rule for first-time buyers. NAR's 2025 Profile of Home Buyers and Sellers put the median first-time buyer down payment at 10%, the highest since 1989, and that is a median, not a minimum. Fannie Mae's HomeReady loan allows as little as 3% down and FHA requires 3.5%. VA loans allow no down payment for eligible borrowers as long as the price is not above the appraised value.

On Acworth's typical home value of $406,860 (Zillow, August 2026), 3% down is $12,205.80 and 3.5% is $14,240.10. Waiting to save 20%, or $81,372.00, can mean years of rent you did not need to pay, though a smaller down payment does bring mortgage insurance and a bigger loan.

What to do instead: Ask a lender to price the same home at 3%, 3.5%, 10% and 20% down so you can see the monthly cost of each, then decide. The Georgia down payment guide walks through each option.

2. Assuming Georgia Dream is a grant

Georgia Dream down payment assistance is a loan. The Georgia Department of Community Affairs (DCA) describes it as a 0% interest second mortgage with no monthly payment that is not forgivable: you repay it when you sell, refinance or stop living in the home as your primary residence. DCA also notes its programs may carry an IRS recapture tax for 9 years from closing. Some third-party sites describe it as a grant; DCA's own pages do not.

Some help in Cobb County is a grant. The Housing Authority of Cobb County's My Home DPA is a non-repayable grant of 0%, 1% or 2% of the first mortgage amount, with no first-time buyer requirement.

What to do instead: Read the repayment terms of any assistance before you count on it, and plan for the Georgia Dream second mortgage to come out of your proceeds when you sell. Details are on the Georgia Dream page and the Cobb County homebuyer assistance page.

3. Assuming you earn too much for help

Georgia Dream's limits in Cobb, Cherokee and Paulding counties are higher than many buyers expect. Under DCA's 2026 brochure, the standard program allows household income up to $137,555 for one or two people or $158,188 for three or more, on homes up to $625,000. Peach Plus goes up to $206,333 or $237,282 and $725,000. DCA counts all household members' income, with some exclusions.

What to do instead: Check the current limits against your household's income before ruling yourself out, and ask a DCA participating lender to confirm. The Georgia first-time buyer programs guide compares every option.

4. Skipping the homebuyer course until it holds up your loan

Homebuyer counseling is required for every Georgia Dream loan. DCA lists housing counseling classes at $50 to $100 and the E-Home America online course at $50, and lenders need the completion certificate dated within 12 months of closing. Fannie Mae also requires education on HomeReady purchases when all occupying borrowers are first-time buyers.

What to do instead: Take the course early, before you make offers, so the certificate is ready when the lender asks. See the Georgia homebuyer education course guide.

5. Not checking USDA eligibility by address

A USDA loan needs no down payment, but only in eligible areas, and eligibility is set by address, not by town name or ZIP. USDA's published eligibility map data shows downtown Acworth and the Lake Acworth area as not eligible. Income also counts: USDA's tool shows a guaranteed-loan limit of $135,500 for households of one to four people in Cobb County as of October 2026, based on all household members' income.

What to do instead: Enter the exact address in USDA's Property Eligibility tool before you fall for a house you plan to buy with a USDA loan. The USDA loan guide explains the rest.

6. Draining every dollar of savings into the purchase

First-time buyers fund their down payments from several places. In NAR's 2025 report, 59% used personal savings, 26% drew on financial assets such as a 401(k), stocks or crypto, and 22% used gifts or loans from family or friends. A home also comes with costs on day one: closing costs, moving, and the first repair.

Georgia Dream adds a twist: you must put in at least $1,000 of your own money or documented gift funds, and DCA caps liquid assets after closing at $20,000 or 20% of the price, whichever is greater (retirement accounts do not count).

What to do instead: Plan your down payment, closing costs and a cash cushion as three separate numbers, and ask your lender how much you need left after closing for your loan type.

Mistakes with your lender and your agent

7. Treating a prequalification letter as a preapproval

The Consumer Financial Protection Bureau (CFPB) explains that a prequalification can be based on information you report without the lender verifying it. Neither a prequalification nor a preapproval letter is a guaranteed loan offer. A letter built on unverified numbers can fall apart after you are under contract.

What to do instead: Get a preapproval based on your documents: pay stubs, W-2s, bank statements and a credit check. Give the lender complete and accurate information, because the approval only holds if what you told them holds.

8. Not comparing Loan Estimates

Every lender must give you a Loan Estimate within three business days of receiving your application. It is a standard three-page form, so the rate, fees and cash to close line up side by side across lenders. The CFPB notes a Loan Estimate is not a loan approval. Taking the first quote you get leaves that comparison on the table.

What to do instead: Apply with more than one lender in the same period and compare the Loan Estimates line by line. Ask each lender how shopping several lenders in a short window affects your credit; that point was not verified for this guide.

9. Signing a buyer agreement without reading the compensation terms

Since August 17, 2024, buyers are asked to sign a written buyer agreement before touring a home with an agent, in person or virtually. NAR's consumer guide says the agreement must spell out the agent's services and compensation, defined clearly (for example $0, a flat fee, a percentage or an hourly rate) and not open-ended or a range. Compensation is negotiable and not set by law, and you can ask the seller to pay your agent. In Georgia, the brokerage relationship law (BRRETA) requires a signed written agreement for a client relationship to exist.

What to do instead: Read the compensation section before you sign, ask what happens if the seller does not pay your agent's fee, and write any request for seller-paid compensation into your offer. I can walk you through each line of the agreement before you sign it.

10. Taking on new debt before closing

A preapproval is not a guaranteed loan, and the lender can review your finances again before closing. A new car loan, a store credit card, or a change of job can change the numbers the approval was based on.

What to do instead: Hold off on new debt and big purchases until after closing, and ask your lender up front which changes would require them to re-verify your file.

Mistakes in the offer and the Georgia contract

Most Acworth purchases use the Georgia REALTORS purchase and sale agreement (form F201). The points below come from the 2022 printing; ask which version you are signing.

11. Assuming the seller pays the transfer tax

The Georgia Department of Revenue says the seller is legally responsible for the state transfer tax, but that parties frequently agree in the contract that the buyer will pay it. The standard F201 does exactly that: the buyer pays the Georgia property transfer tax at closing. On Acworth's typical $406,860 home, the tax is $406.90.

What to do instead: Assume it is yours unless your offer says otherwise, and negotiate it like any other cost. The math is on the transfer tax and intangible tax guide.

12. Forgetting the intangible recording tax in your cash to close

Georgia charges $1.50 for each $500 of a long-term loan secured by real estate when the security deed is recorded. With 3.5% down on a $406,860 home, the loan is $392,619.90 and the tax is $1,179.00. It shows up on your Loan Estimate, but buyers who budget only for the down payment are often surprised by it.

What to do instead: Add the intangible tax and transfer tax to your cash-to-close plan, about $1,585.90 together on that example.

13. Asking for more seller help than your loan allows

The F201 lets you write a dollar amount of Seller's Contribution at Closing into the contract, but your lender may not let you use all of it, and any unused amount stays with the seller. Fannie Mae caps seller and other interested-party contributions at 3% of the price when you put less than 10% down, 6% at 10% to 25% down, and 9% above 25%. FHA allows up to 6%. At 3%, the cap on a $406,860 conventional purchase is $12,205.80.

What to do instead: Ask your lender for your loan's cap before you write the offer, and size the request to costs you can actually use it for.

14. Paying earnest money late

Under the F201, the holder deposits your earnest money within 5 banking days. If your payment is late or bounces, you get 3 banking days after notice to fix it before the seller can treat it as a problem with the contract.

What to do instead: Have the funds ready to send the day the contract is signed, and confirm with the holder that they arrived.

15. Letting the due diligence deadline pass

The due diligence period is your window to inspect and to walk away. If you do not give notice to terminate before it ends, the F201 says you accept the property as-is and lose the right to terminate under that clause.

What to do instead: Put the end date and time in your calendar the day you go under contract, and work backward from it for inspections and quotes. The due diligence period guide covers how the clock works.

16. Skipping the inspection or the add-on tests

Under the F201, the brokers have no duty to inspect the property. A seller only has to disclose latent defects they know about that a careful inspection could not reveal (Georgia REALTORS form F302); otherwise the home is sold as-is. The form lists tests a buyer may want: the Official Georgia Wood Infestation Report, radon, septic, well water, mold, asbestos, lead-based paint, stucco moisture and engineer inspections.

What to do instead: Book a general inspection and the add-ons that fit the house as soon as the contract is signed. The Acworth home inspection guide explains what each covers.

17. Leaving the neighborhood research to someone else

The F201 puts the sole duty to learn about neighborhood conditions on the buyer. Your agent is not responsible for knowing about a planned road, a rezoning or a noisy neighbor.

What to do instead: Visit at different times of day, read any HOA documents, and ask the city or county planning office about plans near the home. For schools, check the assignment with the school district directly; an address is not a guarantee.

18. Overlooking lead paint rules on older homes

If any home on the property was built before 1978, the F201 attaches a Lead-Based Paint Exhibit (form F316). On FHA loans, HUD's handbook puts pre-1978 homes under lead-based paint rules, so peeling paint can turn into a required repair.

What to do instead: Check the year built on the listing, read the lead paint exhibit, and add a lead test to your due diligence list if you plan to renovate.

19. Backing out after due diligence ends

Once the due diligence period is over, walking away without a contractual reason can be treated as a default. Under the F201, the earnest money can then go to the seller as liquidated damages, after the holder gives 10 days' notice.

What to do instead: Make your decision inside the due diligence period. If financing or the appraisal worries you, raise it with your lender and agent before the deadline, not after.

Mistakes at closing and in your first year

20. Thinking the closing attorney is your lawyer

Georgia's Supreme Court has held that closing a real estate transaction is the practice of law, so a Georgia-licensed attorney runs every closing. Under the F201 you can choose the closing attorney (one acceptable to your lender), but when you use a mortgage, that attorney represents the lender. Only in a cash purchase does the closing attorney represent you.

What to do instead: Ask the closing attorney's office questions freely, but if you want legal advice for yourself, hire your own attorney. See the closing attorney and title insurance guide.

21. Declining owner's title insurance without understanding it

Your lender will usually require a lender's title policy, but the CFPB explains that it protects only the lender. An owner's policy is optional and is paid once, at closing. Declining it to save money leaves you without that protection if a title problem surfaces later.

What to do instead: Ask the closing attorney for the owner's policy price on your Loan Estimate and decide with the number in front of you.

22. Not reading the Closing Disclosure

Your lender must give you the Closing Disclosure, a five-page form with your final loan terms, payments and fees, at least three business days before closing. The CFPB says the point of that time is to compare it with your Loan Estimate and ask questions.

What to do instead: Set the Loan Estimate and Closing Disclosure side by side the day you receive it, and ask about any line that changed.

23. Paying mortgage insurance longer than you need to

On a conventional loan, the CFPB says you can ask to remove private mortgage insurance when the balance reaches 80% of the home's original value, and it ends automatically at 78%. On a $406,860 purchase those balances are $325,488.00 and $317,350.80. FHA works differently: with 3.5% down, HUD's annual premium is 0.55% for the life of the loan.

What to do instead: Note the 80% balance on your amortization schedule and ask your servicer to remove PMI when you reach it; extra principal payments get you there sooner.

24. Missing the April 1 homestead deadline

Georgia's homestead exemption lowers your property tax bill, but only if you file. You must own the home on January 1, and the Cobb County Tax Commissioner says applications are due by April 1 (mailed applications need a USPS postmark by that date). Filing late waives the exemption for that year. A buyer who closes during 2026 files by April 1, 2027 for the 2027 tax year.

What to do instead: File as soon as you have moved in, updated your driver's license address and registered your car in Cobb. The Cobb County homestead exemption guide has the steps, and the Georgia homestead exemption guide covers Paulding and Cherokee addresses.

What are the downsides of a first-time home buyer loan?

Low-down-payment loans and assistance programs open the door sooner, but each carries a cost that is easy to miss when you compare only the down payment. Weigh these against the years of saving a larger down payment would take.

Mortgage insurance

A conventional loan with less than 20% down usually carries private mortgage insurance until the balance reaches 78% to 80% of the original value, as described in mistake 23. On an FHA loan with 3.5% down, HUD charges an upfront premium of 1.75% of the base loan plus an annual premium of 0.55% for the life of the loan. On FHA, putting at least 5% down lowers the annual premium from 0.55% to 0.50%, and putting 10% or more down also ends it after 11 years instead of lasting the life of the loan. See the FHA loan guide for the full math.

The VA funding fee

VA loans have no monthly mortgage insurance, but most first-time VA borrowers pay a funding fee: 2.15% of the loan with less than 5% down on first use. On a $406,860 purchase with nothing down, that is $8,747.49, which can be financed into the loan. Veterans receiving VA disability compensation and some others are exempt.

Assistance you repay later

Georgia Dream assistance is a second mortgage you repay when you sell, refinance or move out, so it reduces what you walk away with at sale. Programs may also carry an IRS recapture tax for 9 years from closing. Ask the lender to show the payoff on your second mortgage in writing.

Less room to ask for seller help

With less than 10% down, Fannie Mae limits seller contributions to 3% of the price, against 6% at 10% to 25% down. A small down payment can mean bringing more of your own cash for closing costs.

Can you afford a house in Acworth on $100,000 a year?

There is no single yes or no, because debts, down payment and loan type all change the answer. The math on Acworth's typical home shows how lenders look at it.

The monthly payment on Acworth's typical home

With 3.5% down on $406,860, the loan is $392,619.90. At Freddie Mac's 30-year average of 7.28% (week of October 1, 2026), principal and interest come to about $2,686.35 a month. A $100,000 salary is about $8,333 a month before tax, so principal and interest alone would be about 32.2% of gross income, before property tax, insurance and mortgage insurance.

Compare that with the ratios some loan programs use. USDA's guaranteed-loan rules allow a housing payment up to 29% and total debt up to 41% of income. VA's standard is a 41% debt-to-income ratio. FHA's table for manually underwritten loans starts at 31% for housing and 43% for total debt. Most loans are approved by automated systems that can allow more or less.

How a lower rate changes the picture

DCA's Georgia Dream first mortgage rate was 6.375% effective October 1, 2026. On the same $392,619.90 loan, principal and interest would be about $2,449.44 a month. A $100,000 income is also below Georgia Dream's 2026 Cobb limit of $137,555 for a one- or two-person household. Run your own numbers in the Acworth affordability calculator.

Common questions

What is the biggest mistake first-time home buyers make in Georgia?+

In Georgia, letting the due diligence period end without acting is one of the costliest. Under the standard Georgia REALTORS contract, once the period ends without a termination notice you accept the home as-is, and backing out later can cost your earnest money. Schedule inspections the day the contract is signed and decide before the deadline.

What is the 3-3-3 rule for buying a house?+

It is an informal budgeting rule of thumb shared online, not a rule from any lender, federal agency or Georgia program, and it is not used to approve loans. Rather than rely on it, get a preapproval, compare Loan Estimates from more than one lender, and plan your down payment, closing costs and cash cushion as separate numbers.

What should you not tell a mortgage lender?+

Do not leave things out or round in your favor. The CFPB notes a prequalification can rest on unverified information while a preapproval checks your documents, and neither is a guaranteed loan. Give complete, accurate information on income, debts and gifts, and tell the lender before you take on new debt or change jobs.

Can I afford to buy a house if I make $100,000 a year?+

It depends on your debts, down payment and loan type. On Acworth's typical $406,860 home with 3.5% down, principal and interest at 7.28% (Freddie Mac, week of October 1, 2026) is about $2,686.35 a month, roughly 32.2% of a $100,000 gross income before taxes and insurance. A lender can tell you what you qualify for.

What are the downsides of a first-time home buyer loan?+

Low down payments bring costs. Conventional loans add PMI until the balance reaches 78% to 80% of original value, and FHA charges 0.55% a year for the life of the loan at 3.5% down. VA charges a 2.15% funding fee on first use with under 5% down unless exempt. Georgia Dream assistance must be repaid when you sell or refinance.

Is Georgia Dream down payment assistance free money?+

No. DCA describes Georgia Dream assistance as a 0% interest second mortgage with no monthly payment that is not forgivable. You repay it when you sell, refinance or stop living in the home as your main residence, and DCA notes its programs may carry an IRS recapture tax for 9 years. Cobb County's My Home DPA, by contrast, is a non-repayable grant.

Do first-time buyers have to put 20% down?+

No. NAR's 2025 report put the median first-time buyer down payment at 10%. Fannie Mae's HomeReady allows 3% down, FHA requires 3.5%, and VA loans allow no down payment for eligible borrowers when the price does not exceed the appraised value. Smaller down payments usually mean mortgage insurance and a larger loan.

Sources

Lawrence Jackson

I am a Realtor® with Atlanta Communities and part of Team Jackson Sells Atlanta. I specialize in Acworth, Kennesaw, Marietta and Woodstock and serve all of Cobb County and metro Atlanta. You work directly with me at every step, from your first question to the closing table.

Realtor®, Atlanta Communities. General information, not legal, tax or lending advice.

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First-time home buyer mistakes in Georgia, and what to do instead

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