10 Most Common Home Buyer Questions

10 Most Common Home Buyer Questions

Buying a new home is exciting and confusing. There are a lot of steps to buying a home, and people have questions. Here are the answers to the most common home buyer questions.

1. How do I get started?

– The first step is to speak with a lender and get pre-approved. This will tell you, and potential sellers, how much you can afford.  Knowing how much you can afford makes the home search much easier.  You don’t want to find a home you love only to find out you can’t afford it.   Also, most sellers will require proof of funds to be included with your offer.

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. If there is no financing involved -2 weeks is typical.

3. What does my agent do?

– A buyer’s agent will negotiate terms and manage the closing process from start to finish.  They will help locate the property you desire, help you construct  and submit a strong offer, negotiate any repair or appraisal issues and coordinate all the moving parts of the transaction.

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?

– A 620 FICO score or higher is required for most home loan programs but not always.  Talk to a lender. There are many different types of loan programs available,  some of which may have lower score requirements.

  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.  VA loans offer 0% down payment loans.

7. What other fees will I need to pay? – Closing costs and loan origination fees will add another 2-4% to the costs.  Speak to your lender about the full list of fees.

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. Texas offers an option period.  This is an (optional) time period that the buyer pays the seller for.  During the option period the buyer can cancel the contract for any reason.  Home inspections and insurance quotes are usually done at this time.

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.