Buying a home is one of the biggest decisions in a person’s life so our agents are doing their best to share knowledge that will give confidence and understanding for the clients throughout the entire process.
This article will tackle the commonly asked questions from first-time home-buyers.
- Where do I start?
Most first-time homebuyers start on some of the online real estate websites just to kind of see what’s out there but really the very first step when purchasing your first home is to get with a local bank or mortgage company to get what’s called pre-approved or pre-qualified.
- What out-of-pocket expenses should I expect?
when purchasing a home there are definitely out-of-pocket expenses that you will have but not as much as you think.
Here are the out-of-pocket expenses that you should expect when buying a property:
A. Earnest money – A fancy word for deposit now that earnest money is due at the time of contract it actually doesn’t go to the seller it will be credited back to you once you close.
B. Home inspection – Home inspections are very very important when purchasing a home and the cost can vary depending on the age of the home or the size of the home.
C. Home Appraisal – The appraisal can vary depending on the lender.
D. Closing Costs – These are made up of your lender fees, attorney fees, your homeowner’s insurance, and your property taxes. Now the cost can vary depending on who you choose for those things.
E. Down Payment now we always get the question of “Do I need to put 20 down when purchasing a home?” The answer is NO. There are loan programs out there that allow you to put as little as 0 down which is awesome but I will say the bigger down payment you put on your home will result in a lower monthly payment.
- What credit score do I need to qualify?
This is one of the most commonly asked questions. There are loan products out there that can go as low as they can be but we recommend our clients aim for a higher loan. The higher your credit score the lower that interest rate will be.
- How long is the home buying process?
If you’re not doing new construction the home buying process can take anywhere between 30 to 45 days from contract to close.
- What’s the most important thing to keep in mind?
The most important thing we tell first time home buyers is that you need to remember that this is an investment. statistics show that first time home buyers only stay in their house between five and seven years so with that in mind you definitely want to consider resale value so that when it’s time to sell your home you can make money.