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Real Estate FAQs
It’s our job to guide you through the process of home buying or selling. Whether you’re a first-time buyer or repeat buyer you, we can help you with some answers to the questions that come up most often.
What is the first step of the home buying process?
First, you need to know how much you can borrow, prevent wasting time
considering homes that are not within your budget.
Second, the loan estimate from your lender will show how much money is
required for the down payment and closing costs.
Finally, being pre-approved for a mortgage demonstrates that you are a serious
buyer to both your real estate agent and the person selling their home.
How long does it take to buy a home?
Once a home is selected the offer is accepted, the average time to complete the escrow period on a home is 30 to 45 days (under normal market conditions).
Though, well-prepared home buyers who pay cash have been known to purchase
properties faster than that.
How much do I have to pay an agent to help me buy a house?
For most home sales, there are two real estate agents involved in the deal: one that represents the seller and another who represents the buyer.
Listing brokers represent sellers and charge a fee to represent them and market
the property.
Agents who represent buyers are compensated by the listing broker. When the home is sold, the listing broker splits the listing fee with the buyer’s agent. Thus, buyers don’t pay their agents.
What kind of credit score do I need to buy a home?
Most loan programs require a FICO score of 620 or better. Borrowers with higher credit scores represent less risk to the lender, often resulting in a lower down payment requirement and better interest rate. Conversely, home shoppers with lower credit scores may need to bring more money to the table (or accept a higher interest rate) to offset the lender’s risk.
How much do I need for a down payment?
While the broad down payment average is 11%, first time homebuyers usually only put down 3 to 5% on a home. That’s because several first-time home buyer
programs don’t require big down payments.
programs don’t require big down payments.
Some programs require even less. VA loans and USDA loans can be made with zero down.
Some newer conventional loan programs are available with 3% down if the borrower carries private mortgage insurance (PMI).
Should I sell my current home before buying a new one?
Some home buyers decide to turn their current home into an investment property, renting it out. In that case, the current home will not need to be sold. However, your loan advisor will still need to evaluate your risk profile and credit history to determine whether making a loan on a new home is the best way.
