The 10 Most Common Home Buyer Questions
Home Buyer Questions
Buying a home is both exciting and terrifying, all at the same time. There are many steps to the home buying process and each step creates a new set of questions. Knowing the answers to the 10 most common home buyer questions can alleviate some of the stress that comes with buying real estate. Buying a home may seem intimidating, but a good REALTOR® will make it much easier. They will take care of you through each step of the process, and make your experience as smooth as possible.
#1 WHAT’S THE FIRST STEP OF THE HOME BUYING PROCESS?
Answer: The Mortgage Pre-Approval.
One of the first home buyer questions is how do I start? 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.
#2 HOW LONG DOES IT TAKE TO BUY A HOME?
Answer: Around 45-60 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 60 days to close.
#3 WHAT DOES A REALTOR® DO?
Answer: Just about everything.
One of the very common home buyer questions is what do I do for them. A REALTOR® is your most valuable asset when buying 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.
#4 HOW MUCH DO I HAVE TO PAY A REALTOR® AS A HOMEBUYER?
Answer: Nothing. Zilch. Nada.
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.
#5 WHAT’S YOUR BEST ADVICE FOR FIRST-TIME HOMEBUYERS?
Answer: 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 numerous 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.
#6 WHAT KIND OF CREDIT SCORE DO I NEED TO BUY A HOME?
Answer: Usually 620 or higher, but it depends.
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. I can connect you with both local and national lenders that can work with your specific situation
#7 ARE THERE SPECIAL HOME BUYING PROGRAMS THAT I SHOULD KNOW ABOUT?
Answer: Yes.
I am often asked about first time home buyer programs but these programs were dissolved a long time ago as they were considered to be unfair to individuals that were not first time home buyers. Don’t worry, 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. Again, you lender can expand upon these options and how to qualify for them.
#8 HOW MUCH MONEY DO I NEED FOR A DOWNPAYMENT?
Answer: It depends on your loan type. As little as 3% to 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 may be eligible for a USDA loan, which also requires no money down.
#9 WHAT OTHER FEES ARE THERE, BESIDES THE DOWNPAYMENT?
Answer: Mainly loan origination and closing costs.
The downpayment is usually the largest cost associated with buying a house. Lending fees are the second largest costs to homebuyers. 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. Attorney costs, home inspections, and appraisals would be the next largest costs. Your loan officer will be able to help you determine how much you can expect to pay towards loan origination and closing costs.
#10 WHEN DO I GET THE KEYS?
Answer: 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.
I hope this article covering common home buyer questions was helpful/ Do you have a real estate question that you would like answered? Does not need to be home buyer questions, could be anything. Feel free to contact me directly at (732) 236-8971, a good REALTOR® is your best source of information when buying 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 process.