Skip to main content

How to buy your first house in this crazy market! #firsttimehomebuyer

Do you have questions about buying a home? If you are a first time home buyer, the info contained here is a great start!




Q: What’s the first step of the home buying process?
A: Getting pre-approved for a mortgage. Unless you are able to pay cash for a house, you’ll need to get a mortgage. In order to know how much you can afford for a home, you will need to get pre-approved for a loan. This should always be the first step in the home buying process.


Q: How long does it take to buy a home?
A: The average time of closing on a home is around 30-45 days. The timeline is going to vary from person to person but once you find a house and get your offer accepted, it usually takes about 30 days to close.


Q: What does a Realtor do and do I need one?
A: A realtor is going to be your most valuable asset when it comes to buying a home. They are going to be there to walk you through every step of the home buying process. They will represent you in the transaction and beyond. They should also be there to educate you on all decision you’ll need to make and inform you of your options along the way.


Q: How much do I have to pay a Realtor as a homebuyer?
A: Nothing! That’s the great thing about being a homebuyer. You do not need to pay your realtor anything for helping you purchase your home. The seller pays their realtor a fee and then that agent pays the buyers agent for bringing the buyer and facilitating the transaction.


Q: What does my credit score need to be at in order to buy a home?
A: The recommended credit score is 620 or higher. The higher credit score you have, the better lending terms you get. This is an ever-evolving topic with requirements that are constantly changing. There are some lenders who will approve a buyer with a 580 score or sometimes even lower. Find a loan officer who will give you a current answer for today’s lending requirements. If you need a lender, let us know. We have some great lenders who we work closely with.


Q: What type of home buying programs are there?
A: There are several different home buying programs that you could use. The main ones we see are FHA loans, VA loans, and USDA loans. You’ll want to know the difference between these as you begin your home search.


Q: How much money do I need for a downpayment?
A: It all depends on your loan type. It can be anywhere from 3% to 20%. FHA loans require 3% down where conventional loans require 20% (there are some conventional loans that only require 3% down though). Veterans are usually eligible for a VA loan, which requires no money down. This is also true for USDA loans which are for properties in rural areas.


Q: What other fees will I have to pay other than the down payment?
A: You will have loan origination fees and closing costs. The down payment is typically the largest cost of buying a house. The second largest cost is the lending fees. Most lenders charge between 2% to 4% of the loan amount for the loan origination fees. Again, this depends on the type of loan you have. Conventional loans are usually lower when it comes to loan origination fees, but of course, conventional loans require more money down.

Please contact us for more information at 763-746-3997 and speak with one of our outstanding buyer's agents today!


Comments

Popular posts from this blog

10 Things Nobody Tells you About #BuyingaHouse

10 things that only Real Estate agents like us will tell you! Buying a house can be a very exciting time and you need to be prepared. Our agents are well versed in this process and are ready now to show you the way!
1. The average person looks at 15 properties before making an offer. That doesn’t mean that some people don’t fall in love with the first home they see and make on offer on that one. For others, it may take up to 40 houses, but trust us when we say you’ll know when you’ve found the right one.

2. You don’t pay your real estate agents commission. Luckily for the buyers, it’s the sellers that pay their commission. There may be some other fees that are tied in, but your agent will be upfront with you about that.

3. Even though you told yourself you shouldn’t and wouldn’t, you’re going to end up looking at homes out of your price range. Whether you’re just browsing online or out and about, you’re going to find homes that aren’t in your price range and you’ll probably fall in lov…

Q and A with Chris Fritch #heirs #taxes written by Benny L Kass

Q.
My wife and I are retired and are in our seventies. We have two children, and our house is currently worth approximately $300,000. We purchased the property many years ago for $32,000, and currently have a very small mortgage and a $40,000 home equity loan. We are debating on whether to sell the house and take the up-to-$500,000 exclusion of gain or to let our children inherit the house when we pass on.

What are the implications of all of this appreciation on our estate if we do not sell our house before we die. Must my heirs pay tax on the entire appreciation? How is this covered in the Tax Code? A.  This is a very complicated issue, and you must seek advice from your tax advisors. It is especially important now that Congress has enacted a major change in the tax laws -- much of which is still under review by the tax experts. You should also discuss your concerns with your children, although the final decision can only be made by you. Oversimplified, the basis of inherited property…