Is this your first time buying a home? Well, congratulations! The venture towards home ownership is no small feat and comes with a lot of information thrown at you at once. There’s a lot of questions you might have, so we took the time to answer some of the most common ones for you. Here are a few things you need to know.
Where do I start?
Saving up money and looking into mortgages is step one and two in a home buying process. You want to find out what your lending options are and get pre-approved for a loan. Once you know what your budget is going to be then you can start looking for homes.
What if I don’t have stellar credit?
Your credit score impacts the interest rate you will have to pay for your loan. If your credit score is below 700, you’ll be at a slight disadvantage when it comes to the interest rate. If you have poor credit that is still above 580 you’ll still be able to qualify for an FHA loan but will need to pay for mortgage insurance (protects the lender) which will, unfortunately, be an extra charge.
Who pays the realtor?
Generally, the seller is responsible for paying the Realtor’s fee and commissions. The reason is that they represent and help them make the sale. On the other hand, your realtor usually will split the commission with the buyer’s realtor.
How Much Does the Inspection Cost?
The average cost of a home inspection according to a 2016 study is $318 but can range anywhere from $200-$470.
When Do I get the Keys?
You will receive your keys either at closing or after your county official records the title. If it is the latter then you might have to wait a few more days. Another instance that can hold up the process of you receiving your keys is if there’s a delay in your loans.
Do I need Homeowners Insurance?
Although not always required, homeowners insurance should be on your list of things to get. Insurance can help your home in case of fires or natural disasters like earthquakes. Another important thing homeowners insurance covers are the liability from someone who might get injured on your property.