What’s the first step in the buying process?

The mortgage pre-approval! Unless you are paying cash for a house, you will need to get a mortgage. In order to know how much home you can afford, you will need to get pre-approved for a loan.

How long does it take to buy a home?

Around 30-45 days. The timeline for finding a house varies greatly from person to person. Once you find a house and have an accepted offer, it usually takes around 30 days to close.

What does a REALTOR® do?

Almost everything! A REALTOR® is your most valuable asset when buying a home. They will walk you through every part of the home buying process. They will educate and inform you of all your options. They will represent you throughout the transaction and beyond.

How much do I have to pay a REALTOR® as a home-buyer?

In most cases, you do not have to pay your REALTOR® anything to help you purchase a home. The sellers pay both their listing agent and the buyers agents commission.

What kind of credit score do I need to buy a home?

A 620 credit score, or higher, is recommended. As you are probably aware, a higher credit score offers better lending terms. This is an ever-evolving topic, however, as loan requirements are constantly changing. There are some lenders who will approve buyers with a 580 score, sometimes even lower. Your loan officer will be the best source to give you a current answer for today’s lending requirements.

Are there special home buying programs that I should know about?

Yes! There are some great home buying programs to research. The main ones would be VA loans, USDA loans, and FHA loans. Knowing the difference between these loan types is very important.Be sure to speak with your lender to see what loan type best works for you.

How much money do I need for the down payment?

Usually 3% to 5% down. The most common answer is 3% to 5% of the purchase price. There are also some conventional loans that only require 3% down. Veterans are usually eligible for a VA loan, which in some cases requires no money down.

What other fees are there, besides the down payment?

Mainly loan origination and closing costs. The down payment is usually the largest cost associated with buying a house. Lending fees are the second largest costs to home buyers.