Whether a buyer is purchasing their first or third home, the process of home-buying can create an array of emotions. There are several steps to this process and with each step, new questions are created. To ensure that the home-buying process isn’t overly confusing and overwhelming, being well educated and prepared are key. We’ve created a list of the top FAQ’s and answered them for you.
Should I talk with a bank before looking at homes?
Yes definitely, there are several reasons as to you should talk with a bank and get pre-approved before looking at homes. First and foremost, talking by doing so, you will understand exactly how much you can afford. Also, you want to really understand exactly what costs are associated with buying a home.
What’s the first step of the home- buying process?
Mortgage pre-approval. Unless you are paying cash, getting a mortgage is a must. Getting pre-approved for a loan is the first step in the home buying process.
What kind of credit score do i need to buy a home?
Usually you will need 650+,or higher, but that varies depending on which lender you use. There are some lenders who will approve a buyers with a 580 score. Your loan officer is the best source to give you a current answer for today’s lending requirements.
Do I really need a Realtor when buying a home?
It is HIGHLY recommended you use a Realtor. The home-buying process becomes a lot easier and you have the skills of the realtor to guide you onto an easier path. You don’t have to worry about paying the realtor any fees because usually the seller takes care of that.
How many homes should I look at before putting in a purchase offer?
There honestly is no specific number of homes you should look at before deciding on a home to buy. You look at as many as you need to until you’ve found ‘the one’.
How much money do I need to for a down payment?
It depends on your loan type, usually 3% to 5% down.
How much should I offer the seller?
You are the only one who can decide how much you should offer a seller. You definitely want to talk to your agent for advice and suggested thoughts, but in the end it is up to you.
What other fees are there, besides the downpayment?
Mainly loan origination and closing costs. Most lenders will charge you 2%-4% of the loan amount for loan origination fees, it just depends on the loan type. Your loan officer will help you determine how much you can expect to pay towards loan origination and final closing costs.
How long does the seller have to respond to my offer?
There’s not really a correct answer for this question. It usually varies from 12 hours to 3- 4 days. A purchase offer has what we call a “life,” the “life of the offer.” Usually, your Realtor should know how long of a “life” you offer has.
How long does it take to buy a home?
The time it takes to purchase a home varies from person to person. Once the seller has accepted your offer, it takes about 30 days to close.
What if my offer is rejected?
If your offer is rejected, you have the right to place another offer. It isn’t really common for an offer to be rejected, unless the seller is given a very low offer.
What’s the next step after my offer was accepted?
After your final inspections, a formal mortgage application has to be completed, as well as, the title, abstract, survey, and any miscellaneous paperwork.
Do i have to do a final walk through?
As the buyer, you do have the option. Although it isn’t a requirement, should you? YES! When doing a final walk through a few things you should check, for example, if the furnace is working, the toilets are flushing properly, and if there is hot water.
When do I officially get my keys?
You receive your highly anticipated keys at closing. A closing usually takes about an hour or so but in some cases, the lender will need time to fund the loan and you will need to pick up the keys after the loan has been funded. Make sure you coordinate with your agent to get your keys the day of the closing.
Being well educated and prepared when buying a home can really make a difference. No question is a dumb question, so if you find yourself unsure or confused, ASK! The home buying process can be stressful as it is, so make sure you’ve got everything down. You don’t want to sign documents not knowing what exactly it is for. Be prepared, stay organized, and remember to stay focused throughout this wonderful journey.
Author:Jaime Pardo Phone: 703-839-2341 Dated: May 15th 2017 Views: 1,514 About Jaime: ...
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