10 frequently asked questions clients often have about the home buying process
The first step is typically getting pre-approved for a mortgage. This helps you understand how much you can afford and shows sellers that you're a serious buyer.
The traditional down payment is 20% of the home's purchase price, but many loans allow for much lower down payments. It's essential to consider additional costs like closing fees, moving expenses, and home maintenance.
Pre-qualification is a preliminary assessment of how much you might be able to borrow based on basic financial information. Pre-approval is a more in-depth process that involves a lender reviewing your financial documentation and confirming the amount they’re willing to lend you.
Look for an agent with a good track record in your desired area, who understands your needs and preferences, and with whom you feel comfortable. Personal referrals and online reviews can be helpful.
Pay attention to the condition of the home, including the foundation, roof, plumbing, and electrical systems. Also, consider the neighborhood, proximity to work or schools, and the home’s layout and size.
A home inspection is an assessment conducted by a professional to identify any potential issues with the property. It’s highly recommended to ensure you’re aware of any problems before finalizing the purchase.
Closing costs include fees for the mortgage application, appraisal, title insurance, and more. They typically range from 2% to 5% of the loan amount, and it’s important to budget for these costs.
Contingencies are conditions included in the purchase offer that must be met for the sale to go through. Common contingencies include home inspections, financing, and appraisal.
On closing day, you’ll review and sign the final paperwork, pay the remaining closing costs and down payment, and receive the keys to your new home. The transaction is finalized, and ownership is officially transferred to you.