BUYER COMMONLY ASKED QUESTIONS //

Am I ready to buy?

Ask yourself these questions:

• Do I have a steady job?

• Have I been steadily employed for the last two to three years?

• Is my current income reliable for the foreseeable future?

• Do I have a positive bill-paying history?

• Do I have few outstanding long-term debts, like car payments?

• Have I saved for a down payment?

• Can I afford to pay a mortgage, taxes, utilities, and insurance?

What is the first step of the home buying process?

THE MORTGAGE PRE-APPROVAL: Unless you are paying cash for a house, you will 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.

What’s the difference between a pre-qualification and a pre-approval?

Pre-qualification: Getting pre-qualified for a mortgage gives first-time homebuyers an indication of how much they “might” qualify to borrow. This mortgage amount is not guaranteed because no information has yet been verified. A letter from the lender may only state that you are “likely” to be approved for a mortgage.

Pre-approved: Better yet is getting pre-approved for a mortgage, which is based on a real credit score, and it also puts real estate agents and home sellers at ease. The buyer has more to offer when making a deal and in a competitive market this can be a definite plus.

How long does it typically take to close on a home once under contract?

30-45 days if financed. 2-3 weeks if cash.

What does a real estate agent do for me?

Your agent is your most valuable asset when buying a home. They will walk you through every part of the home buying process, advise you on homes you like, negotiate on your behalf, manage contract deadlines and protect your interest throughout the transaction!

What’s your best advice for first-time home buyers?

TRUST THE PROFESSIONALS: Beware of advice from people who do not work in the industry. Real estate is a popular topic and almost everyone feels like they have some great insight to offer. In reality, the people who know best are the people that work in the business.

What kind of credit score do I need to buy a home?

Ideally a 640+, but if you have lower, do not let that deter you. There are many programs out there for First Time Homebuyers. At least take the time to speak with a lender to know and understand your options.

What other fees should I be aware of?

Earnest money, closing costs, moving expenses, home inspection. For more information on this, contact me for a more detailed outline of fees.

When do I get the keys?

Under normal circumstances, you will be handed the keys at the closing table. Typical closings take about an hour. Be prepared to sign your name a lot!

What’s included in my mortgage payment?

Principal, Interest, Taxes & Insurance

What are the homeowner’s tax benefits?

• Typical deductions are mortgage interest and real estate taxes.

• In most cases, loan discount points and origination fees are deductible.

• There are capital gains benefits, but don’t worry about that until you buy your first home.