Buyers Guide

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.

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. This is the first-step in the home buying process.

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 to 45 days to close.

It depends on the type of loan you’re applying for and your personal financial situation. The most common answer is 3.5% to 5% of the purchase price. Veterans are usually eligible for a VA loan, which requires no money down. Properties in rural areas are usually eligible for a USDA loan, which also requires no money down. A 20% down payment is widely considered the ideal down payment amount for most loan types and lenders. Before you decide, you should weigh the pros and cons of making a large down payment, to see what is not only feasible for you, but what will work best with your finances and goals.

The loan origination and closing costs. 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.

An earnest money deposit is also referred to as a good faith deposit. When a buyer purchases a home, they provide the seller’s real estate company a deposit to hold in their escrow account. The primary purpose of this deposit is to show a seller you are serious about purchasing their home. The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.

This question is often asked. The answer is, there is no specific number of homes you should look at before buying a home. Don’t feel that if you were to purchase the first home you look at that you’re making a mistake. Same can be said if it takes you looking at 25 homes.

Yes and No. I recommend a buyer to perform a final walk-through. Generally when buying a home several weeks go by between when you last walked through your home. Lots of things can change during that time. When doing a final walk through a few things you should check is that the furnace is working, the toilets are flushing properly, there is hot water and repairs in the negotiations (if any) have been completed.

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.

In most cases, you do not have to pay your REALTOR® anything to help you purchase a home. 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.