When buying a home, or even considering it, there are a lot of questions that typically come up. Whether it is your first time as a homebuyer or you have bought a property in the past, there are a lot of questions that may arise when purchasing a house. We have compiled 10 of the most common questions that homebuyers have about the process and details of buying a home. Check out our Q & A below of these frequently asked questions when purchasing real estate!
Answer: Get your mortgage pre approved
You will probably find it necessary to get a mortgage when buying your home, unless you are purchasing it in cash. Before you know what house you can afford, you need to make sure you can get a loan and get pre-approved for it.
Answer: Usually around 30-45 days
The length of time it takes to buy a home changes depending on the person and situation, but the average amount of days is 30-45. That is the usual amount of time it takes for a house to close after there is an accepted offer on the home.
Answer: Pretty much everything you can imagine
Having a Realtor on your side when buying a home is an incredible asset. Your Realtor will walk with you during every step of the way when buying a home. They will help you understand the market and inform you of all your possibilities. They will fight for you when you find your home and make the big step of purchasing it, and be with you to figure out all the details of completing the transaction, and more.
Answer: Typically $0
It is very common for the Realtor fee to be encompassed by the seller’s costs, not the buyer’s. The listing agent working with the seller usually pays the buyer’s agent out of the costs of selling the home. So typically, you as a homebuyer do not have to pay your Realtor to help you.
Answer: Rely on experienced professionals
When you are a homebuyer, especially for the first-time, you do not want to leave anything to chance. Instead of taking guidance from inexperienced people who do not know the industry as a career, take it from Realtors who have many successful home transactions in the books. Experienced, good Realtors have a keen eye for what to beware of when buying a home, and how to avoid those situations. Hire a Realtor, and in doing so you will have a professional on your side helping you confidently find your dream home.
Our team here at Montgomery Real Estate Group has overseen over 221 Million in real estate sales. We have over 16 years of experience and are dedicated to helping people find and purchase their dream home. Go ahead and contact us today for help buying a home, or even to answer more questions you may have! We can't wait to hear from you!
Answer: Usually at least 620
It is suggested that you have a credit score of 620 or higher. Some lenders only require a credit score of 580 or sometimes lower. Still, the higher your credit score, the better the lending terms. That being said, you should ask your loan officer the current standings of credit scores and lending requirements.
Answer: Yes
There are many options to look into for some great home buying programs. Some major ones include VA loans, USDA loans, and FHA loans. It is very important to recognize the difference between loan types. If you are interested in finding homebuyer programs, please reach out to us! Many of our preferred lenders specialize in homebuyer programs for the area.
Answer: Depends on your loan type but is typically 3-5%
Typically, the down payment is 3% to 5% down of the purchase price. Recently, FHA loans dropped their percentage requirement from 3.5% to 3.0%. In some specific cases such as for veterans or properties in rural areas, a VA loan or USDA loan may be available, in which no money is required as a down payment.
Answer: Mostly loan origination and costs from closing
Usually, the down payment is the largest payment connected with purchasing a house. Second to the down payment costs are the lending fees. Usually the lending fees are around 2% to 4% of the loan amount, but it is dependent on the type of loan you get. You can ask your loan officer for a more accurate expectation of how much you will need to pay for closing costs and loan origination.
Answer: When the house closes
Normally, you will receive the keys at the closing of the house. The closing usually lasts around an hour. Sometimes, you will pick up the keys after your lender has funded your loan. In most scenarios, though, you can pick up your keys at closing. We would just advise to have your closing and loan funding lined up so that you can get your keys on the same day.
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