Financing
What is the minimum credit score to qualify for a loan?
Generally you need at least a 600 score to qualify
What does a REALTOR do?
Having a good REALTOR makes all the difference, we can help you understand the market and find the right property in a sea of homes, help you structure the offer to get the home, give references to other professionals you might need, and work to overcome setbacks in the process.
During what period can you back out for any reason?
Due diligence, which typically ranges from 3-10 days
How long does it take to get prequalified?
Prequalification can take about 1-2 days but most of the time it can be done same day
What nonrefundable fees do you have to pay out of pocket?
Through the process you will pay for a home inspection (roughly $350-500) and an appraisal (typically $500)
What is earnest money?
These are funds you put down as a deposit on the home to show the seller you intend to purchase their home. The amount is typically 1% of the offer price and goes towards your funds needed at closing.
How do you determine what your monthly payment will be?
Your monthly payment consists of the loan (Principal and Interest), Taxes, and Insurance; your lender can put together a better estimate for you using the property address
How long does it take to purchase a home?
Purchasing a home takes anywhere from 25-45 days depending on the loan and how quickly you turn in paperwork to your lender
What is the amendment to address concerns?
After your inspection we will help you negotiate for the seller to make any major repairs or get you some additional funds to compensate for these items.
Will running my credit multiple times with lenders hurt my score?
No, you can have multiple mortgage pulls within a 45 day period and it's treated as just 1 inquiry
How does my agent get paid?
The standard commission of 3% is paid by the seller in almost every deal. Sometimes the seller will try to short the buyers agent by offering a reduced commission. In this case we would let you know before looking and try to negotiate the difference into the contract before having you pay the difference out of pocket.
What is a financing contingency?
Typically lenders are thorough when prequalifying you and it is rare a loan will fall through. With that being said if you are not able to obtain financing you will have the right to back out and retain your earnest money during this period.
Should I sell my current home before buying a new one?
It depends, if you have a considerable amount of equity built up in the home you may want to consider selling and using the proceeds as a downpayment towards another. You could always choose to rent your old home before buying another as long as your rent amount covers at least the mortgage.
How many homes should I view before buying one?
It is not uncommon for buyers to find a home after only seeing a few for the first time. As agents we do our best to narrow down what we show you based on your needs and budget.
What is an appraisal contingency?
If for whatever reason the home doesn't appraise for the offer amount, this period protects your earnest money if you choose to back out. Many times the seller will allow you to reduce the purchase price to that of the appraisal.