There are a lot of steps to buying a home, and people have questions. Buying a new home creates a great deal of excitement, but also can create confusion. Here are the most common questions home buyers have, and the answers.
- How Do I Get Started? – The first step is getting a pre-approval by speaking to a lender. This might be your bank or a qualified mortgage lender in your area. This will guide you to how much you can afford.
- How Long Does it Take to Close on a Home? – Once the contracts are signed to complete lending, appraisal, and inspection processes, it takes around 30-45 days. Depending on your moving situation and that of the seller, this process can take longer to accommodate both parties.
- What Does My Agent Do? – From start to finish, a buyer’s agent will help you find homes, narrow down the choices, submit purchase offers, negotiate terms of your purchase, and manage the process all the way to the closing date where you take possession of your new home!
- How Much Do I Pay for a Buyer’s Agent? – Nothing. Most local multiple listing services have cooperating agreements where the seller’s agent offers the buyer’s agent a portion of their commission from the sale of the seller’s home. Reach out to a qualified agent or Realtor to learn more about Buyer Representation.
- What Credit Score Do I Need to Qualify? – For most home loan programs, a 620 FICO score or higher is required. There are a variety of factors considered based on your income, veteran status, credit score, so talk to your bank or other qualified mortgage lender to better understand all your options for financing.
- How Much Money Do I Need for a Down Payment? – It varies. Most lenders offer standard programs for a 5% down payment and FHA loans start as low as 3%. More conventional loan programs will require 10% or 20% down payment depending on the terms of the loan. Best to understand all your financing options and find what’s right for you.
- What Other Fees Will I Need to Pay? – Loan origination and closing costs fees will add some additional costs to the processing of your loan. These vary based on type of loan, lending institution and market, but you can estimate the additional closing costs at approximately 2-4% of the purchase price.
- What if I Change My Mind? – Don’t worry, your agent will work with you to build in contingencies for condition, loan terms/approval, and other protections to give you time to evaluate the home during escrow.
- When Do I Get the Keys? –You’ll get the keys at the closing unless, you’ve negotiated extra time for the sellers to move out.
- What’s the Best Advice for Home Buyers? – Ask lots of questions and trust the experts!
Buying a new home is an exciting time but can also be stressful if you aren’t prepared. A good buyer’s agent can reduce any anxiety and make the process go smooth. By finding a Realtor who can help guide you through all the steps in the process, you can make the best choices and find the home that fits your current needs. Please Contact Us for more details on our services and how we might be able to help.