WHAT QUESTIONS SHOULD I HAVE BEING A NEW HOME BUYER
Buying real estate can be exciting and possibly terrifying, all at the same time. There are many steps to the home buying process and each step creates a new set of questions. In this part of my 3 part series we will be focusing on the new home buyer, if you missed part 1, please check it out here. 12 Mortgage Questions. Knowing the answers of the 12 most common new home buying questions can help with some possible stress you may be feeling. Buying a home may seem intimidating but a good Mortgage & Real Estate Advisor will make it much easier. I make it my mission to take care of you through each step in purchasing your first home. Contact Rich Surek Today.
1. What’s the first step of buying your first home?
The mortgage pre-approval should be the first place everyone starts. For a new home buyer this is by far the best method both Realtors and Mortgage Brokers alike will tell you to do. 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. Apply Here!
2. What does a Realtor® do?
The quick answer, a bunch! A Realtor® is one of your most valuable assets when buying a home for the first time. A good Realtor® will walk you through every part of the home buying process. They will educate and inform you of all your options. A Realtor® will represent you throughout the transaction and beyond. To fully understand what that means, you can reach out to me and we can help you get started. To learn more visit my full site here.
3. What does a Mortgage Broker / Advisor do?
The simplest answer, save you time and money! It can be quite frustrating and time-consuming to shop around for mortgage options. However, a mortgage broker can streamline the process by helping a client fill out a single application that can be passed on to multiple lenders. While the client is working or house hunting, the broker is hard at work as well. To learn more visit my page on why to hire a mortgage broker / advisor here.
4. How long does it take to buy your first home?
The usual time frame to purchase a new home is 30 to 45 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 30 days to close. Keeping some extra days to make sure all contingencies are planned for is something I highly recommend.
5. How much do I have to pay a Realtor®?
This answer always makes my clients smile, nothing. You usually do not have to pay them anything to help you purchase a home. Sellers are responsible to pay their REALTOR® a fee, and then that listing agent pays the buyers agent for bringing you, the buyer, that assisted with the sale of the home.
6. Do you have any great advice for a first time home buyer like me?
My obvious answer to this question, trust the professionals! Beware of the opinions of others. Real estate is a popular topic so usually 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. I’ve seen too many first-time home buyers become persuaded by well-meaning friends and family, only to be disappointed later. Be confident in your decisions and trust the professionals you hire. Having an experience with so many transactions leads to many referrals for a reason. If you’re friends or family are giving you the advice to seek a professional or possibly sent you to me, that’s the best advice they can give. Contact Rich Surek for the help you need.
7. Do I need to have amazing credit to buy a home?
For many years the answer was always yes, however now a 620 credit score, or higher, is what I recommend. You may be aware that a higher credit score grants you a better rate or term. However, loan requirements are constantly changing from year to year. There are some lenders who will approve buyers with a 580 score, sometimes even lower. There are also many more programs using FHA, VA or USDA to approve you to purchase your first home.
8. Are there any special programs to purchase a new home?
The answer, you bet! There are some great home buying programs to research if you would like before our consultation. The ones I recommend most are FHA & VA loans. Knowing the difference between these loan types is very important. Both provide down payment assistance under certain conditions. Also the USDA loan is a great product when looking in more rural areas of your state.
9. How much money should I have or save for a down payment?
The most common answer you hear is 20%; however, there is more possibilites out there for loan products. Now a common answer I give is 3% to 5% of the purchase price. FHA loans normally only require 3.5%. Veterans are normally eligible for a VA loan, which requires no money down. Properties in rural areas are usually eligible for a USDA loan, which also may require no money down. Let me help you research all the options available to you. Apply Here or Contact Rich to start the process.
10. What other fees am I going to get charged with a new home purchase?
The down payment is usually the largest cost associated with your first home. Closing costs are usually the the second largest cost to home buyers, they commonly include title fees, appraisals, and escrow fees for taxes. One of the best compliments I get is going through all of your fees from the beginning vs. surprising you at the end or while closing on your new home. If you don’t want to be surprised about fees, contact me today so you can get the facts.
11. Should I get a home inspection?
Absolutely yes! Your not just buying that beautiful living room with a fireplace. You’re also buying any problems that can be lurking in the attic, basement or crawl space. Sometimes a new home buyer can even get the home inspection to be paid for by the seller, but don’t always count on that. Figure it as a cost and protection before the transaction is final.
12. When do I get the keys to my new home?
You get the keys at closing. Normally a typical closing takes about an hour. Some inexperience can lead other brokers or realtors to schedule closings on Friday afternoon and the loan may not fund before Monday and you may not get the keys until then. This is just one more reason to have an advisor with experience on your side. I want you to have the biggest smile and be proud of your new home purchase the day you close so you can move into your new home right away.
Richard Surek | Senior Mortgage Advisor | 608-960-4363 | firstname.lastname@example.org | richsurek.com