When should I start looking for a home?
When the time is right for you! Let us know when you're ready & we'll help you form a game plan.
We will alway advise you to speak with a qualified lender early in the process to crunch numbers and know approximately how much you'll need to save to bring to closing as well as different loan options.
We will help you get pre-qualified with a qualified lender before you view homes in person. It is important make sure that you are comfortable with payment amounts before you fall in love with a home. We don't want you to fall in love with a home that's payments would stress you out each month. Life is more than stressful mortgage payments!
How much will I need for a down payment or closing costs?
There are several different loan options that are available. If you're eligible for a VA loan there might be a 100% financing option available to you. If you qualify for a USDA loan & the house we find that you love qualifies for it too then 100% financing may be available too. With a 100% financing loan program you wouldn't have a down payment.
There are other loan programs that have low down payment amounts, it could be as low as 3.5% or 5% or go up to 20%. Each loan does have different qualifications, terms, & options.
A knowledgable loan officer will be able to analyze your information and recommend the best loan program for you.
There will be expenses to purchase a home. Those include the appraisal & home inspection (usually paid up front), a survey, pest inspection, legal costs, & lender fees. The lender will be able to give us a good estimate of how much to expect for your closing expenses.
Once we find the right property for you we can negotiate to see if the Seller will cover your closing expenses.
It's rare yet I have had transactions where the buyers either brought nothing to closing or every now & then they might even get a check back.
How would a Buyer walk away with a house & a check?? When the Sellers cover all or the majority of the closing expenses & there is a 100% loan. The buyer gets a credit at closing for any Due Diligence & Earnest Money that was paid up front towards a property with the contract. It's this Due Diligence fee or Earnest Money that sometimes causes the overage and ends up with the Buyer walking away with a check & keys. Any amount back of course has to be with lender approval.
When should I get pre-approved for a loan?
The best time to talk to a lender is immediately. Even if you're not ready to purchase a home yet it's a great idea to talk to them & have them take a look at your financial status so they can advise you of any steps you can take to improve your credit score and get a better rate. They can also let you know approximately what your down payment will be so you know how much to save & be prepared for.
What is Title Insurance?
Title Insurance protects the home buyer from any issues with the title that were not caught before the closing/recording happened. This is paid at closing & included in the closing costs.
What is PMI?
PMI means Private Mortgage Insurance. It protects the lender from you defaulting on the loan. This is required by lenders for loans that are less than 80% Loan To Value. If you're putting less than 20% down on a loan to purchase a house then you will have to pay PMI either up front or more commonly combined with the monthly loan payment.
Why should I work with a Buyer's Agent? Would I save money if I don't use a Buyer Agent or I deal with the Listing Agent directly?
A Buyer Agent will work only for you & is obligated to look out for your best interests. They will guide you through the process to make it go as smoothly as possible. They will also have a vast network of qualified professionals to not only recommend but to reference & seek advice from or professional opinions on when needed. It is extremely important to have your own representation on every new construction home purchase & resale home purchase. The listing agent represents the Seller & is obligated to look out for the Seller's best interests, not yours.