By James Planning to buy a new home or any real estate property can be troublesome yet exciting. Many questions arise while buying a real estate property. The article quotes a list of common questions asked by the buyers. Knowing their answers could ease the pressure and make your home buying enjoyable.
Common Questions that First Time Home Buyers Have
1. What’s the first thing to do?
Get a Pre-approved Loan. More than 70% of first-time buyers consider a mortgage loan for buying a house. To know about your affordability, you must consult a mortgage expert first. The mistake that most buyers make is that they start searching for property. Ignoring the finances and without even knowing how much they can afford.
It only takes a few minutes to consult a lender. They usually like to see if you can spare 25-30% of your monthly income towards your house payment. So make sure you get this done first.
2. What’s the ideal credit score required?
An individual’s credit score is a crucial factor in acquiring a loan. The least score that is acceptable by lenders is 580. An ideal credit score should be 620 or more.
3. Amount of money required for Down Payment
The down payment depends on the type of loan program you choose. Generally, lenders need you to make a down payment between 3-5%. Factors that determine down-payment depend on the property type and credit history. Down payment can also vary if the reason for buying is an investment or not.
4. Should I consult an Estate Agent?
Yes. Estate agents are professionals who deal with property buyers and sellers every day. They are trained for this job and deal with all the complications with ease. An experienced estate agent can identify when the deal is good and when it’s not.
The real estate industry has fierce competition. With that said, an estate agent is the professional that you would love to have on your side.
5. How much will the Real Estate Agent charge me?
Nothing. All the charges are paid by the seller only. Then this commission is split between the buyer’s agent and the seller’s agent. So you have a professional working for you at no extra cost.
6. How to know about the Neighboring area?
The best way to know about the neighborhood is by doing your due diligence. Visit the area at different times, even at night. Explore online for the reviews of your prospective locality. Even Google searches can tell you every little thing about the vicinity.
7. Is Home Inspection necessary?
A Definite Yes. “You can’t judge a book by its cover” this quote is justified when dealing with real estate purchases. Paying some hundred dollars for home inspection now is reasonable. It can save you thousands of dollars in the future.
There are no excuses for doing a home inspection. It is the only thing in your hands that will safeguard your new home buying. Even if you are considering buying new construction, a home inspection is required.
8. How much will it cost me for a Home Inspection?
The actual cost of getting a professional inspection is pennies in dollars. Compared to the ultimate amount you spend on the house. An estimated cost will somehow range between $300-$500, depending on the area of the property.
You will get a detailed report covering all the issues that need repairs in the home. Professional home inspectors even provide photographic proof of problematic areas in the property.
‘Better be safe than sorry’ is best suited for getting a Home Inspection done before buying your home.
9. How much time does it take to close a home deal?
Time taken varies from case to case. It takes around 30 – 40 days to close a deal if you have a pre-approved conventional loan. But for a VA or an FHA loan, it would take 5 – 7 more days to complete a deal. Dealing in foreclosure will take a couple of months and a time of 2 to 4 months to close a short sale deal.
10. Is it possible to back out from the deal?
Once all the parties have agreed upon all the terms and sign the legal contract, it is tough to back out. Yet, many conditions within the contract need to be done first, like a home inspection. It’s not simple to walk out of the contract without the penalty, but some clauses will defend you. For instance, if both parties disagree on the repairs shown in the inspection report. You can back out from the contract without getting penalized.