- WHAT’S THE FIRST STEP OF THE HOME BUYING PROCESS?
The Answer: The mortgage pre-approval
Unless you’ve been saving your pennies for a while and can pay cash for a house, you will need to get a mortgage. In order to know how expensive a house you can buy, you will need to get pre-approved for a loan. This is the first step in the home buying process.
- HOW LONG DOES IT TAKE TO BUY A HOME?
The Answer: Between 30 and 45 days
The timeline for finding a house varies greatly because there are so many variables. Once you find a house and have an accepted offer, it usually takes around 30 – 40 days to close.
- WHAT DOES A REALTOR DO?
The Answer: Almost everything involved in the home buying (or selling) process
A realtor is your most valuable asset when buying a home. They will walk you through every part of the home buying process and will do much of the grunt work for you. They will educate and inform you of all your options. And finally, they will represent you throughout the transaction and beyond.
- HOW MUCH DO I HAVE TO PAY A REALTOR AS A HOME BUYER?
The Answer: In most cases The sellers pay their realtor a fee, and then that listing agent pays the buyer’s agent for bringing the buyer and facilitating the transaction. We will go over the NC buyers agency agreement with you and answer any questions you may have.
- WHAT’S YOUR BEST ADVICE FOR A FIRST TIME HOMEBUYER?
The Answer: Trust the professionals!
Beware of advice from people who do not work in the industry. Real estate is a popular topic and almost everyone feels like they have some great insight to offer. In reality, the people who know best are the people that work in the business. Good realtors have sold hundreds (or even thousands) of properties. They know what to expect and what to look out for.
- WHAT KIND OF CREDIT SCORE DO I NEED TO BUY A HOME?
The Answer: Talk to your lender
As you probably know, a higher credit score offers better lending terms. Your loan officer will be the best source to give you a current answer for today’s lending requirements.
- ARE THERE ANY USEFUL PROGRAMS TO HELP ME AS A HOME BUYER?
The Answer: Absolutely!
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 types of loans is very important. There is also Ownify which is a home equity share program.
- BESIDES THE DOWN PAYMENT, ARE THERE OTHER FEES?
The Answer: The loan origination and closing costs, as well as Due Diligence Deposits, Earnest Money Deposits and Inspection fees.
The down payment is usually the largest cost associated with buying a house and lending fees are the second largest. Most lenders will charge between 2% to 4% of the loan amount for loan origination fees, depending on the loan type. Conventional loans usually have lower loan origination fees, but require more money down. Your loan officer will be able to help you determine how much you can expect to pay towards loan origination and closing costs.
- WHEN DO I GET THE KEYS?
The Answer: At closing
Usually, you will get the keys at the closing which typically takes about an hour. In some cases, the lender will need time to fund the loan and you will need to pick up the keys after the loan has been funded. If you have a Friday evening closing and the loan cannot fund until Monday, you may not get the keys until Monday. Make sure to coordinate your closing to get the keys on the same day, if that is what you want or need.