BUYER FAQ
How do I know if I’m ready to buy a home?
If you have a stable income, strong credit, and enough savings to cover a down payment and closing costs, you might be ready to take the exciting step toward homeownership. But buying a home is more than just finances—it’s about aligning with your long-term goals and lifestyle. Consulting with a trusted real estate agent can help you assess your readiness, explore your options, and navigate the path to finding the perfect home.
Do I need a real estate agent to buy a home?
While it’s not required, working with an experienced real estate agent can save you time, stress, and money. They guide you through the process, negotiate on your behalf, and provide valuable insights.
What is the first step in the home-buying process?
The first step is getting pre-approved for a mortgage. This helps you understand your budget and shows sellers you’re a serious buyer.
How much do I need for a down payment?
The amount varies depending on the loan type, but it can range from as low as 3% to 20% of the home’s price. Some programs, like FHA loans, require lower down payments.
What’s the difference between pre-qualification and pre-approval?
Pre-qualification is an estimate of how much you can borrow based on self-reported information, while pre-approval is a more detailed process where the lender verifies your financial information.
What should I look for during a home viewing?
Pay attention to the condition of the roof, plumbing, electrical systems, and foundation. Also, consider the layout, storage space, and neighborhood to ensure they fit your needs.
How much can I afford to spend on a home?
A good rule of thumb is to spend no more than 28-30% of your gross monthly income on housing costs, including your mortgage, taxes, and insurance.
Should I get a home inspection?
Yes, a home inspection is essential to uncover any potential issues before finalizing the purchase. It protects your investment and gives you peace of mind.
What are closing costs?
Closing costs are fees associated with finalizing the home purchase. They typically include lender fees, title insurance, and property taxes and range from 2% to 5% of the purchase price.
What happens on closing day?
On closing day, you’ll sign the final paperwork, pay any remaining costs, and officially take ownership of the home. Your real estate agent will ensure everything goes smoothly.