Home Buyer FAQ

How Much Can I Afford?

• What you can afford depends on your income, credit rating, current monthly expenses, down payment, and the interest rate. Please use a loan calculators to get an idea of how much you can afford, but visit a lender to get pre-approval.

How Do I Get A Loan?

• Save money by shopping around. Shop different lenders, compare costs, interest rates, and negotiate to get the best deal. Once you have all the information consider getting pre approved for a loan. The buying process often goes much faster for buyers that are pre-approved than to someone who is not.

How Do I Shop For A Home?

• Choose an agent that you feel comfortable dealing with and that you trust.  Your agent is going to help you through the rest of the buying process.  So it is important to get someone you can work with.
• Next make 2 lists. The first should include items you must have (i.e., the number of bedrooms you need for the size of your family, a one-story house if accessibility is a factor, etc.). The second list is your wish list, things you would like to have (pool, den, etc.) but that are not absolutely necessary. Realistically for first-time buyers, you probably will not get everything on your wish list, but keep track of this you might be surprised at how much of your wish list you get.
• When you look at properties take notes on it so that you can compare them to one another.  Take the notes when you viewing the property not afterwards, this way you don’t forget something about the property.

How Do I Make An Offer?

• Once you find the piece of property for you, talk to your agent about making an offer.  Most likely the seller will counter your offer. You may need to negotiate until you both agree to the terms of the sale.
• When making an offer, make sure you understand what comes with the piece of property.

Should I Get A Home Inspection?

• If your offer is on a home, make your offer is contingent on a home inspection.  An inspection will tell you about the condition of the home, and can help you avoid buying a home that requires unexpected repairs.
• A home inspection is often required by lenders
• A home inspection my give you the leverage to offer less money
• Take more than one walk through the home including one right before closing, to make sure nothing has been altered.

Do I Need Home Owners Insurance?

• Lenders will require you to have homeowners insurance.
• Shop around and find out what deals they offer if you have security systems, smoke alarms, etc.  Some companies offer as much as 15 – 20% off your monthly premiums if you have systems that notify police if the fire and burglar alarms go off.
• Look at getting your home and automobile policies from the same insurer.  Most offer discounts if you carry both through them.

What Happens At Closing Time?

• In most cases, closing involves signing many documents. Don’t get overwhelmed, as this is a normal process. Don’t hesitate to ask questions at this time because these documents are binding.

Who Pays The Commission?

• As a buyer, the price you agree to is the price you pay. All commissions are deducted from the amount of money that the seller receives from you or your lender.

What Other Costs Can I Expect When Buying A Home?

• If you are a first time home buyer, there may be expenses you have not had before including phone, internet, cable, utilities and maintenance costs.
• There are also costs that are often added (ESCROW) into your monthly loan payment. These costs usually include closing costs, home insurance and title insurance.