10 Common Questions Buyers Have
Buying a new home is exciting and confusing. There are a lot of steps to buying a home, and people have questions. These are the most common questions home buyers have, and the answers.
1. How do I get started? – The first step is to speak with a lender and get a pre-approval. This will tell you, and potential sellers, how much you can afford.
2. How long does it take to close on a home? – Typically, it takes about 30-45 days once contracts are signed to complete the lending, appraisal, and inspection processes.
3. What does my agent do? – A buyer’s agent will negotiate terms and manage the closing process from start to finish.
4. How much do I pay for a buyer’s agent? – Nothing. The seller’s agent gives the buyer’s agent a portion of their commission from the seller.
5. What credit score do I need to qualify? – It depends on the loan program, a 620 FICO score is pretty standard for most home loan programs but there are some programs that don't require a credit score at all! Talk to a lender for more information on a home loan program that is right for you.
6. How much money do I need for a down payment? – It varies. FHA loans start as low as 3% and most lenders offer standard programs for a 5% down payment.
7. What other fees will I need to pay? – Closing costs and loan origination fees will add another 2-4% to the costs.
8. What if I change my mind? – Your agent will work with you to build in contingencies for condition, loan terms/approval, and other protections to allow you time to evaluate the home during escrow.
9. When do I get the keys? – Unless you’ve negotiated extra time for the sellers to move, you’ll get the keys at the closing.
10.What’s the best advice for home buyers? – Trust the experts and ask lots of questions.
Buying a new home is exciting. Reduce any anxiety by finding a good buyer’s agent who can help you make the best choice for your needs.