Buying real estate is exciting and terrifying at the same time and there are many steps to the home buying process and each step creates a new set of questions.
Knowing the answers ahead of time can help relieve some of that stress that comes with buying real estate. Buying a home may seem intimidating but a competent Realtor® will make it an easy process. They will walk you through each step of the process and make sure your experience is as smooth as possible.
THE TOP TEN HOME BUYER QUESTIONS
The very very very first step and most important step is the mortgage preapproval. Unless you’re paying cash for a house, you’ll need to get a mortgage in order to know how much home you can afford you will need to get pre-approved for a loan.
This is the first step in the home buying process.
2) HOW LONG DOES IT TAKE TO BUY A HOUSE.
No matter what anybody else tells you on how long it takes to buy a home. It’s normally around thirty days. The timeline for finding a house varies greatly from person to person. Once you find a house and have accepted an offer. It usually takes around thirty days to close. Depending on if the loan is by Fannie Mae or Freddie Mac, it could normally take thirty to forty five days. If it’s a real estate owned property sometimes up to sixty days.
This does not include short sales short sales as a shot sale cancan take two to seven months or longer. So if you need to be in a home in the next thirty to sixty days, forget about short sales
3) WHAT DOES A REALTOR® DO
Almost everything, a Realtor® is your best valuable asset when you buy a home, they will walk you through every part of the home buying process. They will educate and inform you of all your options. They will represent you throughout the transaction and beyond. There is a difference between a Realtor® and a real estate agent many people do not know this, but a Realtor® is regulated by the National Association of Realtors and subscribes to a strict code of ethics a real estate agent does not. It is highly recommended that you work with a license Realtor® to avoid potential problems.
4) HOW MUCH DO YOU HAVE TO PAY A REALTOR® AS A HOME BUYER
Nothing, in most cases you do not have to pay your Realtor® for anything to help you purchase a home. The seller pays their Realtor® a fee for listing/selling the house and then the listing agent pays the buyer’s agent for bringing in the buyer and facilitating the transaction.
5) WHAT’S YOUR BEST ADVICE FOR THE FIRST TIME HOME BUYER
Beware of advice from people who do not work in the real estate industry. It is a popular topic and almost everyone feels like they have some great insight to the offer. In reality the people who know best are the people that work in the business full time and have sold hundreds of properties. We know what to expect and what to look out for while friends and relatives they think they have your well being mind and may have only bought or sold a few homes if any at all. Buying and selling a couple of homes does not make someone a well rounded source of information. I’ve seen too many first time buyers become persuaded by well meaning friends and family only to be disappointed later. Be confident in your decisions and trust the professionals you’re working with
6) WHAT KIND OF CREDIT SCORE DO YOU NEED TO BUY A HOME.
The answer is normally 620 or better. A 620 credit score or higher is recommended. As you are probably aware the higher the credit score the better your lending terms are. This is an ever evolving topic as loan requirements are constantly changing. There are some lenders who approve buyers with a 580 score and sometimes even lower. Your loan officer will be the best source to give you a current answer for today’s lending requirements.
7) ARE THERE SPECIAL HOME BUYING PROGRAMS THAT A BUYER SHOULD KNOW ABOUT.
Yes. There are some great home buying programs to research, the main ones would be V.A. loans, U.S.D.A. loans and F.H.A. loans. Knowing the difference between these loan types is very important. Other local options would include S.H.I.P. and some down payment assistance programs, a well versed competent Realtor® can guide you in this process as well as the lender you’re dealing with.
8)HOW MUCH MONEY DO YOU NEED FOR A DOWN PAYMENT
Well that depends on your loan usually three to five percent down. The most common answer is three to five percent of the purchase price. F.H.A. just dropped the requirements from 3 ½% to 3%. There are also some conventional loans that only require 3% down veterans are usually eligible for a V.A. loan which requires no money down and there are properties in rural areas that are usually eligible for a U.S.D.A. loan which also requires no money down.
You also have to take into account that there are some closing costs that have to be covered and sometimes they can be included in the closing.
9) WHAT OTHER FEES ARE YOU RESPONSIBLE FOR BESIDES THE DOWN PAYMENT
Mainly loan origination and closing costs the down payment is usually the largest cost associated with purchasing a home. Lending fees are the second largest cost to homebuyers. Most lenders will charge between 2% – $4% of the loan amount for loan origination fees. Depending on the loan type conventional loans usually have lower loan origination fees but require more money down, your loan officer will be able to help you determine how much you can expect to pay towards your loan origination and closing costs.
10) WHEN DO I GET THE HOUSE
Keys, garage door closer warranties (if applicable) would be given at closing under normal circumstances and a closing typically takes about 1 – 2 hours 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.
For example if you have a Friday evening closing and the loan cannot fund until Monday you may not get the keys until Monday. If the owner of record is Fannie Mae or another type of agencies they normally do not release keys until the day after closing. Make sure to coordinate your closing to get the keys on the same day if at all possible