Buying a new home is exciting and confusing. There are a lot of steps to buying a home, and people have questions. These are the most common questions home buyers have, and the answers:

  • How do I get started? – The first step is to speak with your trusted real estate adviser who can recommend you to a trusted lender so you can get pre-approved. This will tell you, and potential sellers, how much you can afford.
  • How long does it take to close on a home? – Typically, it takes about 30-60 days once contracts are signed to complete the lending, appraisal, and inspection processes.
  • What does my agent do? – A buyer’s agent will negotiate terms and manage the closing process from start to finish.
  • How much do I pay for a buyer’s agent? – Nothing. The seller’s agent gives the buyer’s agent a portion of their commission from the seller.
  • What credit score do I need to qualify? – A 620 FICO score or higher is required for most home loan programs. Talk to your trusted lender for other options for lower scores. 
  • How much money do I need for a down payment? – It varies. FHA loans start as low as 3% and most lenders offer standard programs for a 3-5% down payment. VA loans require a 0 down payment.
  • What other fees will I need to pay? – Closing costs such as mortgage applications, appraisal fees, title insurance, inspection fees, escrows, etc. Your real estate adviser can provide you with a list of closing costs for the price range and area you are considering.
  • What if I change my mind? – Your agent will work with you to build in contingencies for condition, loan terms/approval, and other protections to allow you time to evaluate the home during escrow. 
  • When do I get the keys? – Unless you’ve negotiated extra time for the sellers to move, you’ll get the keys at the closing.
  • What’s the best advice for home buyers? – Trust the experts and ask lots of questions.

Buying a new home is exciting. Reduce any anxiety by finding a trusted real estate adviser who can help you make the best choice for your needs.

What questions do you have about buying a home that you would like an answer to? Please put your questions in the comment section below and I will answer them for you.