When it comes to buying a home it may seem intimidating, but a good realtor will make the process a lot more manageable and more efficient. They will walk you through every step of the way so that they can best represent you and ensure a smooth transaction. The Home Buying process comes with a lot of unknown and creates questions throughout the entire process.
Common questions a buyer may have:
What is the first step in the home buying process?
The first step is to get in touch with a lender to review the financing side of the process and get in touch with a realtor for the contract and negotiation side of the process.
How long does it take to buy a home?
It depends on a few variables, the average closing date is 30-45 days to close on a home.
What does a realtor do? Why do I need one?
A realtor represents you and has your best interest in mind when navigating through the transaction. They will handle everything from the shopping part to the negotiations and the contracts. Your Realtor will be able to help connect you with an amazing lender, local inspectors, contractors and even a great title company. Having a realtor ensures for a more smooth transaction.
How much does a realtor cost?
Typically, more often than not the sellers pay the buyers agent commission through their agreement when listing their home. As always, please check with your Realtor for their fees and charges since everyone is different.
Which lender do I choose?
Your realtor should have a list of preferred lenders that they work with and would suggest for you. It is ultimately your decision who you choose.
What should my credit score be?
Depending on the type of financing that you may need will determine the credit score requirement. Most lenders will tell you that you should
Are there any first time home buyer programs/credits?
Since this varies upon states and regions, check with your lender as to the requirements for such things.
What are closing costs?
Closing costs are paid at the close of your real estate transaction and may include your home inspection, realtor and lawyer fees, title search, pest inspection, home warranty, loan origination fees, escrows, prepaid items, homeowner’s insurance, title insurance, etc...
Do I need inspections?
Inspections are not always a requirement but are always recommended.
What is a Title company and what do they do?
The role of a title company is to verify that the title to the real estate is legitimately given to the home buyer. Essentially, they make sure that a seller has the rights to sell the property to a buyer.
Do I need title insurance?
If you are getting a mortgage your lender will require a lender policy. While you don't HAVE TO get an owner's title insurance policy, it is highly recommended. It is only a one time fee that lasts the entire length of the time you own the home and helps ensure your investment is protected
When can the homebuyer move in?
Depending on the terms of the contract will determine when you will be able to move in. Commonly the buyer takes possession of the home at the time of settlement. However, sometimes there is a Post Settlement Occupancy Agreement that dictates other arrangements with a timeline of a few days or even a couple months that the seller can stay (rents back) in the home before the buyer will take possession.