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Top 8 Frequently Asked Questions First Time Home Buyer

Top 8 Frequently Asked Questions First Time Home Buyer

 First Time Home Buyer Top 8 Frequently Asked Questions The Path to Homeownership

  1. Do I need a real estate agent?

While it is possible to buy a home without a professional real estate agent, It’s a lot harder to do on your own. A professional real estate agent is will represent you as a buyer while making an initial offer, negotiating on price, and at any other time during the home-buying process.

Not only have real estate agents received training and education, but they’re also up-to-date on current market conditions, real estate procedures, and the closing process.

They’ve also got helpful industry contacts, like lenders, appraisers, and other service professionals that can make the buying process go more smoothly.

  1. Can I buy a house with average credit and/or little or no money down?

A buyer’s credit score and down payment may impact the amount they’re approved to buy or their financing rate, but there are typically mortgage options to meet many financial situations.

  1. How much money do I need for a down payment?

The amount of money you’ll need to put down on a new home depends on the price of the home you select, along with the mortgage terms that you’re approved for. There are different loan options that may allow a buyer to put as little as 3-5% down or even less.

  1. How do I find the right lender?

Many buyers often start with their own personal banking institutions or credit unions. When it comes to financing a home, it is a good idea to shop around for the best mortgage terms. Buyers are able to seek out mortgage rates from several lenders before selecting the one that is best for them.

  1. What does a monthly mortgage payment cover?

Monthly mortgage payment covers the principal amount borrowed, homeowners insurance, property taxes, interest fees and PMI, if applicable. Monthly mortgage payments do not cover things like utilities, cable and internet service or homeowners association fees.

  1. What is PMI?

PMI (Private Mortgage Insurance) is money a buyer pays along with their principal and interest to reimburse a lender in case they default.

This fee is usually lumped into a buyer’s monthly mortgage payment until about 80% of their home is paid off, at which point PMI is typically canceled.

  1. What happens during the closing process?

After buyers and sellers agree on a home’s price and terms, the closing process begins and it typically lasts between 30-60 days.

Home inspections and appraisals are completed and financial documents are finalized. On closing day, both buying and selling parties meet at the Title Company to sign final documents. After the Final Documents are Recorded then you get the keys.

  1. How do I get started looking at Homes?

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