How long does it take to buy a home.
From start to finish (pre approval to closing) can take anywhere from 6 weeks or longer. Once under contract typically takes 30 days to close on a home
What is a sellers market?
When the demand for houses is higher than inventory can keep up with.
What is a buyers market?
When have declining home prices and reduced demand.
How much do I have to pay a real estate agent to help me?
Typically nothing!
Here’s why:
For most home sales, there are two real estate agents involved in the deal: one that represents the seller and another who represents the buyer.
Listing brokers represent sellers and charge a fee to represent them and market the property. Marketing may include advertising expenses such as radio spots, print ads, television and internet ads. The property will also be placed in the local multiple listing service (MLS), where other agents in the area (and nationally) will be able to search and find the home for sale.
Agents who represent buyers (a.k.a. buyer’s agent) are compensated by the listing broker for bringing home buyers to the table. When the home is sold, the listing broker splits the listing fee with the buyer’s agent. Thus, buyers don’t pay their agents.
What kind of credit score do I need?
Most loans require a score of 600 or higher. But the higher the score the better the interest rate can be. But the best way to find out is to call a reputable lender and talk with them about current rates and requirements.
What kind of downpayment do I need?
That depends on the type of the type of loan you are doing. Could be a low as zero for certain loan programs for First time homeowners. Again, best action is to talk with mortgage lender and see what the best option is for you.
Should I sell my current home before buying a new one?
If the built-up equity in your current home will be applied to the down payment on the new home, naturally the former will need to be sold first.
Some home buyers decide to turn their current home into an investment property, renting it out. In that case, the current home will not need to be sold. However, your loan advisor will still need to evaluate your risk profile and credit history to determine whether making a loan on a new home is feasible while retaining title to the old home. Buyers often have a short time frame to sell their current home when relocating to a new city because of a job transfer. If you are moving but taking a position with the same employer, check to see if they offer relocation assistance to help offset some of the costs.
What is Earnest money?
Earnest money is made in good faith to demonstrate to the seller your offer is genuine. The money is held in escrow until closing and is applied towards your downpayment and closing cost.
Should I have home inspections done?
It is highly recommended that you always have inspections done on a home. They can help reveal any defects with the home not easily detected. Certain loan types will require some inspections be completed, but for the most part they are all voluntary.
A good home inspection helps bring peace of mind to one of the biggest investments of your life.
Should I do a final walk through?
They are not required but should absolutely be done just before closing. You want to make sure nothing has changed with the state of the home, all repairs were completed to a satisfactory level, and the property is left in good standing.
