A list of the most common questions asked by both buyers & sellers—Answered!
What's 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.
How Long Does It Take To Buy A Home?
- Around 30-45 Days
The timeline for finding a house varies greatly from person to person. Once you find a house and have an accepted offer, it usually takes around 30 days to close.
What Does A Realtor Do?
- Almost Everything
A Realtor is your most valuable asset when buying or selling 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.
How Much Do I Have To Pay A Realtor As A Homebuyer?
- Nothing!
In most cases, you do not have to pay your Realtor anything to help you purchase a home. The sellers pays their Realtor a fee, and then that listing agent pays the buyers agent for bringing the buyer and facilitating 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. Good Realtors have sold hundreds (maybe thousands) of properties. We know what to expect and what to look out for. Friends and relatives have only bought and 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.
What Credit Score Do I Need To Buy A Home?
- Usually 620+
A 620 credit score, or higher, is recommended. As you are probably aware, a higher credit score offers better lending terms. This is an ever-evolving topic, however, as loan requirements are constantly changing. There are some lenders who will approve buyers with a 580 score, sometimes even lower. Your loan officer will be the best source to give you a current answer for today’s lending requirements.
Are There Special Home Buying Programs Available?
- YES
There are some great home buying programs to research. The main ones would be VA loans, USDA loans, and FHA loans. Knowing the difference between these loan types is very important. There could be local programs offered through your state or county as well. Local programs typically provide down payment assistance under certain conditions.
How Much Do I Need For A Down Payment?
- It Depends On The Loan Type. Usually 3% - 5% Down.
The most common answer is 3% to 5% of the purchase price. FHA loans just dropped their requirement from 3.5% to 3.0%. There are also some conventional loans that only require 3% down. Veterans are usually eligible for a VA loan, which requires no money down. Properties in rural areas are usually eligible for a USDA loan, which also requires no money down.
What Other Fees Are There, Besides The Downpayment?
- Mainly Loan Origination & Closing Costs.
The down payment is usually the largest cost associated with buying a house. Lending fees are the second largest costs to home buyers. Most lenders will charge between 2% to 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 loan origination and closing costs.
When Do I Get The Keys?
- At Closing
Under normal circumstances, you will get the keys at the closing. A closing typically takes about an hour. 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. If you have a Friday evening closing and the loan cannot fund until Monday, you may not get the keys until Monday. Make sure to coordinate your closing to get the keys on the same day, if that is what you need.
How Much Needs To Be Done Before Putting My House On The Market?
- In most cases, there's no need to panic —or to overshoot your goals. Often, there's far less to do than homeowners think. So before spending months and millions (figuratively) upgrading your place—or just throwing up your hands and giving up before you begin—show your home to a Realtor. They will educate you and inform you on the best course of action.
How Much Is My House Worth?
- It Depends
The exact price of your own home will depend on its size, neighborhood, and lots of other factors. Further complicating matters is your own skewed perspective: We tend to mentally inflate our home's positives and airbrush out the flaws that are all too apparent to the cold, calculating eyes of buyers.Instead, look at the prices of similarly sized homes that have recently sold in your area—data that agents call comparative market analysis, or "comps." Then, price your place strategically. "If you price too high, the home is likely to linger on the market.Meanwhile, pricing low can have major upsides, resulting in multiple bids that could ultimately jack up your price. So, do your homework. Then, discuss a number with your Realtor that feels right—and is realistic.
Should I Be Present When Buyers View My House?
- NO
Having the owner in the house makes the buyers uncomfortable. They feel as though they can't make comments or ask questions that could be offensive. The owner—who has a history and attachment to the house—has the tendency to argue if a potential buyer makes a comment that could be a little negative. This can turn off buyers and lose you offers.
Is Staging Really That Important?
- In Most Cases, Yes.
On average, a staged home sells 88% faster—and for 20% more money—than a home that's left as is. The reason it works, of course, is it gives buyers a "stage" onto which they can play out their home-owning fantasies and envision themselves living in your home. "Choose neutral paint colors and remove any family photos," says Johnson. Give would-be homeowners a blank canvass that they can mentally fill with their loved ones and themselves.
How Long Will It Take To Sell My Home?
- It Depends
The time varies wildly based on area and price. So, price competitively and make sure that your Realtor is getting the place in front of as many eyeballs as possible. Generally speaking, The higher the exposure, the faster the offers.
Do you have a real estate question that you would like answered? Contact me by filling out the form below, call/text me or use the chat function at the bottom right of the screen. Remember, a good Realtor is your best source of information when buying or selling a home. Once you have a Realtor that you trust, start asking as many questions as possible. They will gladly inform and educate you through each step of the home buying or selling process.
Remember to have fun. Buying or Selling a home should be an exciting process!