FEQUENTLY ASKED QUESTIONS

First, you need to know how much you can borrow! Knowing how much home you can afford narrows down online home searching to suitable properties, thus no time is wasted considering homes that are not within your budget. Second, the loan estimate from your lender will show how much money is required for the down payment and closing costs. Being pre-approved for a mortgage demonstrates that you are a serious buyer to both your real estate agent and the person selling their home. Most real estate agents will require a pre-approval before showing homes!

The first out of pocket expense that you’ll have is the earnest money - this is dependent on the sales price of your new home - typically 2-3% of the purchase price. If a home inspection is issued this is another cost to the buyer (typically $300-$400). Other fees due at the time of closing include the down payment for your loan, and closing costs - these are fees paid at the closing of a real estate transaction.

This varies in terms of your financing! From start (searching online) to finish (closing), buying a home takes about 10 to 12 weeks. Once a home is selected and an offer is accepted (HAPPY DANCE), the average time to complete the escrow period on a home is 30 to 45 days (under normal market conditions). Though, home buyers who pay cash have the opportunity to purchase a property at a faster rate. Market conditions are a major factor in how fast homes are sold. In hot markets with a lot of sales activity, buying a home may take a little longer than normal. That’s because several parties involved in the transaction get behind when business suddenly picks up. For example, a spike in home sales increases the demand for property appraisals and home inspections, yet there will be no increase in the number of appraisers and inspectors available to do the work. Lender turn-around times for loan underwriting can also slow down. If each party involved in a deal takes a day or two longer to get their work done, the entire process gets extended.

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. 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. buyers 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, A buyers agent is a free service to you as a home buyer!

Down payments can be as little as no money down! Buying a house does not take a minimum 20% like you may have been taught to believe! I highly advise you to reach out if you have any further questions and I will get you in contact with a few local lenders available!

Selling your house before buying a new one is the more practical solution for most people, but it’s not always the most convenient. Selling first is beneficial if you need to access your current home equity to buy your new home. However, selling first may require temporary housing while buying your new house. From a real estate market standpoint, selling before buying makes the most sense for people who are selling in a buyers market. In this situation, you know the your current home may take longer to sell, and you probably don’t want to or can’t afford to pay for two homes for an extended period of time!

Earnest money is essentially a down payment/ made in good faith to demonstrate to the seller that your offer is genuine! The deposit can be as little as 1%-3% of the purchase price. The money is deposited in a trust or escrow account for safekeeping. If a deal is struck, the earnest money is applied to the down payment and closing costs. If the deal falls through, the money is returned to the buyer if stated in the purchase agreement.

Yes! Home inspections are highly recommended because they can reveal defects in the home that are not easily detected. They bring peace of mind to one of the biggest investments of a lifetime and may just protect you in the long run!