BUYING FAQ
I’m Ready to Buy a Home. What’s the First Step?
While attending open houses is much more exciting than filling out paperwork, the first step a homebuyer should take is getting pre-approved for a loan. This helps you determine how much house you can afford and set a firm budget. Sellers are also more inclined to take you seriously and consider your offer if they know the home is within your pre-approved limit.
What home can I afford?
That depends on your income and other financial obligations. Your best bet is to contact a reputable mortgage company for an approved amount. And I recommend doing it before we start looking. If you see houses you love outside your price range, it opens you up to disappointment. we have a few lenders that we have worked with in the past that we trust and can recommend when you are ready.
How much should I put down?
It depends on the type of loan, but most lenders require 3 percent down payment for a conventional loan, FHA loans require 3.5 percent down. If you are a veteran (Thank you for your service!), VA loans allow you to purchase a home with very little to no money down. Depending on your loan type, The percentage you’re required to put down will depend on your credit history, the type of property, and several other factors.
What does a monthly mortgage payment cover?
This is often a first time homebuying question, but it’s a great question. A monthly mortgage payment covers the principal amount borrowed, homeowners insurance, property taxes, interest fees and PMI (lender’s insurance incase you default on your loan), Monthly mortgage payments do not cover things like utilities or homeowners association fees. You can use our mortgage calculator by clicking here to get a ballpark idea of what your monthly payment would be based on your approved amount.
How much do you charge to find my dream home?
Typically, you aren’t paying for us to help you find your dream home. A home seller pays their real estate agent a percentage of the home sale price, and that agent pays the buyer’s real estate agent for bringing in the buyer.
How Do I Search for a Home?
It’s all going to start with a discussion between you and us. Together, we will create a list of desired wants and needs, and from there, we will research homes, curate a list for you to view and make recommendations based on your criteria. Of course it doesn’t stop there, as we start to hone in on things you love and want (or don’t), we will adjust and refine to find the perfect home. If you are looking on your own or happen to find a home that is “for sale by owner”, we can help you with that too. Just send us the address and we can arrange a showing and negotiations on behalf of you.
Can I buy a home and sell my current one at the same time?
Yes, you can... But there are ways to do both at once, and one option is to instate a “sale contingency" in your contract. This means you only agree to buy a home if you can sell the one you're in. The only downside is if the seller doesn't agree (which is possible if they want the timing set in stone).
How many homes should I see before making an offer?
That is totally up to you! There is no right or wrong number of homes you should view before making an offer. Some people find their dream home on day one while others house hunt for months. View as many as it takes to find the home that fits your needs.
How do I know if the property is a good deal?
There's no crystal ball on whether a certain home is a bargain, but the best way is to check out comps—what similar properties are selling for in the area and whether those prices have been going up or down recently.
How quickly can I close?
Typical escrow periods are 30 to 45 days. This gives you enough time to do the inspection on the property and get a loan completed.
Should I get a home inspection?
While buyers often wonder if a home inspection is truly necessary, We unequivocally say yes, yes, and yes. A home inspector takes a weight off of your shoulders by looking into the condition of the roof, electricity, heating and air, and plumbing. Typically you should be concerned with anything health and safety related, you can negotiate with the seller to get those items fixed.
Do I need a home warranty?
The decision to invest in a home warranty for the purchase is entirely up to you. A home warranty provides coverage on appliances and specific items for a specific amount of time, typically at least a year. Many first-time home buyers purchase a home warranty so they are covered immediately after making their home purchase. This is smart, as finances may be thinner during this time, and in the event of unexpected repairs or replacements, the warranty will kick in to help with those costs.