Here are some of the most commonly frequently asked questions when you are buying a home or financing a property
1. How long does the buying process take?
Answer: 21-30 days on a previously built home or 7-12 months on a new built home,
2. How many properties does the typical buyer look at?
Answer: This will depend on how detailed and thourough your online search is. Some cleints find their home in the first 2-3 visits and others may take 10-15 depending on if their search is accurate and if their expectations change.
3. When should I make an offer?
Answer: If the home meets most if not all of your expectations, place an offer. If not, lets modify the search so you are only spending your valuabe time in homes that will interest you.
4. How much should I offer?
Answer: This will depend on the value that you see in the home, market conditinos, time on the market, previous pricing adjustments, your loan type as well as the sellers situation and how willing they are to get the home sold.
5. Should I lock in my interest rate or should I float?
Answer: There are so many things that you will be keeping track of. The mortgage rate market is ever changing and I would advise you follow the advice of your loan officer. Floating the rate may cause risk which may make you ineligible for the loan you are applying for where Locking your rate allows you peace if mind to focus on other items you may view more important.
6. When will I get the keys?
Answer: The keys are given to the buyers agent after the deed of mortgage is recorded at the county.
7. What happens at the closing?
Answer: 3 days before closing you will receive a summary of your loan documents to assure what was promosed to you up front from your lender did not change without your knowledge, You will also have a final walkthrogh 3 days before closing. At closing, you will be required to bring your State issued ID and sign with a notary all of the loan documents so they may get them back to the lender and release the funds, the title agent then records the mortgage deed with the county and the keys are released.
8. Is the closing date on my contract guaranteed?
Answer: No, expect that some of the dates and terms may change throughout the home buying process.
9. How much earnest money should I put down?
Answer: Only put down what you are comfortable with but put enough down that the seller is comfortible with accepting your offer to buy their home.
10. What happens to my earnest money?
Answer: The Earnest Money Deposit (or EMD), is held at the title company and is held as colatteral that you will fulfill your end of the purchase contract. In some instances (contingencies) it is refunded if you fulfill your end of the contract but inspection or appraised value can not be negotiated. On the opposite end, if you do not perform there are instances where the seller may receive your forefited earnest money deposit.
11. Will I get my earnest money back if the contract is not accepted?
Answer: The earnest money is only deposited AFTER the contract is initially accepted.
12. What is the process to get my earnest money back if the contract has been accepted but the home inspector finds an issue?
Answer; After the home inspection we will receive a detailed report listing everything the inspector found on the home. We will review the report and assess the items you feel are most important. We then write a reply to the seller requesting them to repair those items or compensate you for the repairs needed. If we do not come to an agreement, the contract is void and the earnest money is returned.
13. How often do you find the perfect property on the first day (80-10-10 rule)?
Answer: It happens more often than not. If the cleint is being truthful with their search criteria and is forthcoming with the agent it allows them to find the most qualified homes.
14. Is there anything I should not do during the house hunting process?
Answer: Yes, there is a compelte section of things you should not do during the home buying process titled “Top Mistakes you can make when shopping for a home” on this website. I would recommend courtesy and common sense which will aleviate you from most of what is on that list.
15. What is the likelihood of a multiple offer situation?
Answer: In what we refer to as a “Seller’s Market” chances are high. Other triggers of multiple offers can include New to market listings, price drops or concessions being offered by the seller.
16. What monies will I need to come in with?
Answer: The funds you will need at closing will be determined a few days before closing. During this time always consult with your mortgage loan officer before moving money or accessing any funds.
17. How long does the home inspection take?
Answer: Depending on the size of the home and what is included in the home inspection it can take 4-6 man hours. Some inspection companies use 2 man teams for safety and to cut the inspection time down. After the property is inspected the report and finding will be reveiwed with you as a buyer.
18. Do I really need a home inspector?
Answer: Home insepctions are important and highly recommended but are not required by law. Your Realtor can better advise you of the pros and cons of home inspections. The are happy to provide you with a few locally recommended Licensed Home Inspectors.
19. Can you recommend an attorney, home inspector or a lender?
Answer: Yes, we can recommed and refer you out to interview Attorneys, Home Inspectors, Lenders, Insurance Agents, Contractors. We do not endorse these individuals but they have some degree of vetting and will try to pair you with the professional that best suits your needs. We do this to allow you to interview them and make the best decision of whom to hire.
20. What is a preaproval and what documents are needed?
Answer: A preapproval is a fully underwritten conditional approval on a mortgage but lacks the property address. This allows you to avoid surprises when you obtain the mortgage.
The documents needed are usually:
- Clear scanned copy of Driver’s License, state or federally issued iD.
- Recent (30 days) paystubs, and paystubs as you move through the process
- 2 months of most current asset statements for all accounts, including blank pages
- Most recent statements for retirement accounts (401(k), money market, stocks, bonds, mutual funds, etc.)
- 2 years W2’s for all borrowers
- 2 years Federal tax returns with all schedules
- YTD Profit and Loss statement for self-employed borrowers
- Mortgage statement, tax statement, insurance statement and HOA statement for all properties owned,