5 Frequently Asked Questions From Home Buyers
Even for the seasoned buyer the home buying process can prove to not only be stressful, but filled with questions and many moments of uncertainty. The best thing you can do as a buyer is to arm yourself with information prior to beginning your search so you can walk in as prepared as possible.
Below we dive into 5 frequently asked questions that many home buyers have and provide information on each topic. Let’s jump in:
What is the first step in the home buying process?
Mortgage pre-approval.
The first step in the home buying process is to get pre-approved for a mortgage. Getting pre-approved for a loan will allow the buyer to understand exactly how much home they can afford and search for houses within their set budget. Buyers will need to provide proof of income, proof of assets, employment verification, good credit and other documentation when applying.
What can I expect my real estate agent to do during the home buying process?
A lot.
When it comes time to buy a home, your real estate agent will become your new best friend and biggest advocate. They are the most valuable asset you have as their knowledge and expertise will help you navigate each aspect of the home buying process. Throughout the entire transaction your realtor will not only represent you, but they will be there to educate you on all of your options and answer any questions you have (because there will probably be lots of them!).
How long does the closing normally take?
It depends.
Typically you can expect the closing process to take around 30-45 days if you have a conventional mortgage, but every situation is different and timelines can vary. While there are some delays that unfortunately are unavoidable (and frustrating) there are a few things you can do to help ensure things run smoothly including depositing the down payment on time, making sure the loan application is complete and fulfilling all unpaid debts.
Is it necessary to get a home inspection?
Yes.
Any time you are purchasing a home you should always get an inspection, even if it’s a new construction. Inspections are relatively inexpensive and will provide you with useful knowledge such as structural issues, safety problems, any unwanted pests and/or insects, and overall peace of mind and protection on your largest investment.
How much should I be saving for a down payment?
Aim for 20% of purchase price.
The magic number many experts say to aim for when it comes to a down payment is at least 20% of the purchase price as it lowers the buyers lending risk. This will allow you to avoid paying for private mortgage insurance (PMI) and added interest to your mortgage payment. As an example, if your dream home is $350,000 you should plan to save around $70,000 for a down payment.
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