If you are getting ready to buy a home, like many, you probably have a few questions as to how the process works, what your options are, and what kind of assistance is available to you.
At Key Realtors, we understand that the home buying experience can be overwhelming and even complicated. So to offer some useful guidance, we’ve put together these home buying FAQs to help you feel more informed and at ease.
Let’s begin –
Should I hire an agent to help me buy a home?
We started out with this question because it is one of the most important. A real estate agent will have a good understanding of the current housing market as well as inside information on listings you may be interested in. An agent’s job is to support you throughout the home buying process to ensure that a fair purchase is settled in your favor.
How long does it take to buy a home?
The timeline for the final settlement of a home purchase really depends on the situation, as there are many factors that can either speed up or delay the process. But in general, most home purchases can be finalized within 30 to 45 days.
Are there best practices for negotiating a home purchase?
Of course –
Hire an experienced agent for support and representation, do your research, choose a reputable home inspector, request a home warranty, and negotiate your deal based on total costs rather than list price.
For more details on negotiating a home purchase, click here!
Do you really have to put 20% down to buy a home?
This is a common misconception that is widespread among uninformed buyers.
Although all home loans are different, the average down payment required of today’s home buyers is around 3-5%. And if your home purchase qualifies for a VA or USDA loan, then your down payment fees are waived completely.
Does credit score affect your ability to buy a home?
Yes, credit scores are still factored into buying a home.
When it comes to getting a home loan, the higher your credit score is, the more likely your chosen lender is to approve your home loan application.
To a home loan lender, a low credit score indicates that a buyer may be at a higher risk of missing payments on their mortgage.
What fees should I be prepared for when buying a home?
When buying a home in the state of Texas, you can expect your overall fees to include:
– Your Down Payment
– Property Taxes
– Homeowners Insurance
– Additional closing costs (lender fees, title company fees, appraisal fees, inspection fees, etc.)
What determines whether or not you are a first time home buyer?
The term “first time home buyer” doesn’t necessarily mean “the first time you’ve ever purchased a home.” In fact, in the state of Texas, you qualify as a first time home buyer if:
– You have not owned a home within the last three years.
– If you have never owned a principal residence, even though your spouse may have.
– You are now a single parent who previously owned a home with your ex-spouse.
– An individual who has only owned property that did not comply and cannot be brought into compliance with the local/state building codes without building a new permanent structure.
Are FHA loans only for first time home buyers?
No. Although some FHA (Federal Housing Administration) loans are specifically tailored to first time home buyers, most are available to all. For instance, the 3.5% down payment program is open to all individuals, regardless of their status in the home buying process.
What determines DPA eligibility?
Numerous factors determine DPA (Down Payment Assistance) eligibility, and although all programs are different; some common eligibility requirements to expect may include:
– Income & Debt-to-Income Ratio
– Credit Worthiness
– Cost of the Home
– Occupancy Timeline
– Prior Homeownership
– Lender Required Homebuyer Education Courses/Certification
Take on Your Home Buying Experience With Confidence
Like many aspects of life, when it comes to buying a home- knowledge and experience really are power.
Although you may not be a real estate professional yourself, you can always count on Key Realtors to guide you to your dream home and help you close the deal with pride.
Give us a call today to begin your home buying journey; we’d love to help!