Buying a home and taking out a mortgage is a big step. Whether it’s your first home or not, you have questions. We’re here to provide some insight into some of the top questions every buyer has.
Should I get pre-approved?
Absolutely. Getting pre-approved makes it a lot easier for you to buy a home. You will not only speed up the process but also be able to know exactly what you can afford.
What do I need to get pre-approved?
There are several things you will need to provide to get pre-approved:
- Bank statements
- Paycheck stubs
- Credit rating
Should I have a real estate agent?
Yes. A real estate agent is going to be able to help you in a variety of ways, including helping you to find a home, negotiate on the price, and walk you through the various options for obtaining a mortgage.
Will a real estate agent cost me?
A real estate agent typically isn’t going to cost you anything. In most instances, the agent fees are covered by the seller, which ensures you get the assistance without any of the expense.
What kind of offer should I put in?
Making an offer on a home is dependent on the condition of the house as well as the real estate market. You should always go in lower than what the home is currently listed at. Your real estate agent can help you with determining a fair offer amount.
Can I perform a home inspection?
There are various inspections that you can request to be performed, including pest, roofing, and more. You can even ensure your offer is contingent upon satisfactory inspections.
Are there any home buying programs I should explore?
You should explore several different home buying programs including USDA, FHA, and VA. You may not qualify for all of them, but it’s worth investigating to ensure you get the best possible mortgage on your home.
What kind of down payment is needed?
The amount you need for a down payment will be dependent on the type of loan.In most instances, you need between 3% and 5%. If you don’t have the full amount, you may be able to obtain PMI. However, if you want to avoid the cost of PMI, be sure to identify that during the pre-approval process.
What are the other fees I need to know about?
You may have closing costs and loan origination fees, but these aren’t always your responsibility. A bank may choose to waive the origination fees, and you may even get the seller to cover the closing costs.
When is the closing?
The closing is often 30 to 45 days after an offer has been accepted. It is during the closing that you will sign all of the documents and get the keys to your new homes.
It’s essential for you to ask all of the questions you have in regards to buying a new home. It will allow you to be more knowledgeable about the process so you can be sure you’re getting the best payment possible.
