Home Buyer Questions & Answers

Buying a home is a big commitment. It can take decades to pay off a mortgage. Don’t over-extend yourself because that’s a long time to be chained to a mortgage you can’t afford. Buy a home that fits your budget without overextending yourself. It’s easy to upgrade.

Get an idea of how much house you can afford: Affordability Calculator

Financial experts recommend spending up to 28% of your monthly income on housing costs and keeping total debt under 36% of your income. Use an online affordability calculator to help with this.

First step? Call me. I will walk you through every step of the home buying process. After you call me, get pre-approved for a mortgage. If you don’t have or know a lender, I know one I trust to give my clients quality service and great rates.

A mortgage pre-approval will help you establish a budget.

For most loans, a credit score of 620 is the minimum. The higher your score is, the lower your interest rate. FHA loans might accept scores as low as 500 with a larger down payment.

To avoid private mortgage insurance (PMI) you will need to put down 20%. The good news is, PMI makes it possible for lenders to accept lower down payments. FHA loans require as little as 3.5%, and VA loans may need no down payment at all.

Some lenders require you to have a certain amount of money in reserves, ask your lender about that to avoid a surprise in the end!

Closing costs include fees for the lender, appraisal, title company, and more. They typically range from 2% to 5% of the purchase price. For a $300,000 home, expect to pay $6,000 to $15,000. Your lender will fully disclose the costs associated with your loan early in the process.

Again, some lenders will require a buyer to have a certain amount of money in reserve to close a loan.

From getting pre-approved to closing on your home, it usually takes 30–60 days. This varies depending on market conditions, your loan type, and how long it takes to find a home.

Cash buyers can close much faster because they aren’t working with a third-party lender. It still takes time to complete inspections, get a formal appraisal, complete a title search, and more depending on your unique circumstance.

Pre-qualification is an estimate of how much you can borrow, based on basic unverified financial information. Pre-approval is more detailed, involving a credit check and documentation. The pre-approval carries more weight with sellers.

Buying builds equity and can be a good long-term investment, but renting makes sense if you plan to move soon or can’t afford upfront costs like a down payment and closing costs. Consider your financial and lifestyle goals.

My advice? Get ready! Be ready when you buy so you can enjoy the experience without the financial headaches that come with overextending.

After you make an offer on a home, the offer is accepted and both parties sign, the due-diligence clock begins. The amount of time allowed for due diligence will be determined by the two parties.

During this period, buyers can back out of the contract for any reason (or no reason at all) and usually receive a refund of their earnest money deposit. A home inspection checks the condition of major systems like plumbing, electrical, heating/cooling, the roof, and the foundation. If the inspector identifies issues, you can negotiate with the seller for repairs or a price reduction.

I consider negotiation to be one of my best skills. Get pre-approved to gain trust with the sellers. I’ll help you determine the market value of the home and compare it to the asking price. Offer a fair price and earnest to show your commitment. I avoid waiving inspections unless absolutely necessary. My transaction coordinator, Nicole Baird, and I will help make yours a seamless transaction. We’ll do the work. You enjoy living without the headache.