Frequently Asked Questions

Do I really need a real estate agent?

Yes! Purchasing property is a large investment. Unless you are an agent yourself, it can be very overwhelming to keep up with all the steps, dates, and real estate language involved with the transaction. In addition, negotiations take professional experience and real-time knowledge of the market to be successful. Lastly, to view properties outside of an open house time, an agent is required.

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What is the first step to buying?

You will need a pre-approval to begin looking at property. Speak to a mortgage broker, or loan officer. The lender will evaluate your financial portfolio to determine how much of a loan you qualify for. 

What is a pre-approval?

A statement letter from your lender with the specific budget loan amount you qualify for to buy a home. This is based off of your credit score, and other specific financial criteria.

What is the difference between a pre-approval and a pre-qualification?

A "pre-qualification" is your estimated loan approval amount determined by the stated information you shared with your lender. The "pre-approval" is a preliminary letter with the budgeted loan amount that will be awarded to you that has been verified with documentation.

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What out of pocket costs will I have to pay?

Inspection, down payment, and closing costs. As a first time home buyer a down payment costs of 3-5% of the purchase price will be paid by the closing day. Closing costs will be paid on closing day. You will make a deposit from that down payment at the time of the initial offer, and again when signing the P&S. 

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How much money will I need at closing?

Closing costs consist of title fees, attorney fees, commission fees,

Ask your lender.

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What is the difference between a title and deed?

The title of a property is simply the ownership. The deed is the actual document

What is PITI?

The different categories that make a mortgage payment. The loan principal, Interest, property taxes & home Insurance.

What is closing?

The day you “close the deal” on the property. The transaction takes place with an attorney or title company in which you submit your approved loan and any fee payments & receive the deed and keys to the home. 

What are mortgage points?

Also known as discount points. It is an amount paid to the lender to “buy down” the interest rate on the loan. One discount point is equal to 1% of the loan amount.

What are contingencies?

Specific conditions in which the offer is dependent upon. If the condition implied is not met, you have the option to opt out of the agreement.

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How long will the buying process take?

This is dependent upon multiple factors. In a perfect scenario, it can take 30-45 days to close on a house from the time you put the offer in.

But of course, we don’t live in a perfect world. To make the best of your time make sure to see 3 or more properties at a time to compare the options. Keep consistent communication with your real estate agent and stay prepared to submit any necessary documents your agent or lender will require from you.