FAQ
FAQ
Frequently Asked Questions
Am I Ready to Be a Homeowner?
Purchasing your first home is a major milestone and not a decision to be taken lightly. It’s a huge financial commitment that can take months of preparation—searching for the right home, making an offer, going through the mortgage application process and closing on the home. Then you have the actual business of home ownership, which is a whole different story.
If you’re a first-time home buyer, you’ve probably asked yourself, “am I ready to be a homeowner?” Don’t worry—homeownership is a big step and I would love to help you decide.
Is Renting or Buying Better?
Unfortunately, a Realtor really can’t answer that question for you. There are too many factors to consider and both renting and buying have their pros and cons. Your first stop might be to a financial advisor to discuss which makes more sense financially for you.
What Is the Lender's Formula?
At the end of the day, the bank wants a loan that’s safe. To avoid taking on any unnecessary risk, they’ll review your financial history, and what they’re really looking for is stability.
Typically, they’ll want to see proof of a two-year employment history (pay stubs and W2s) showing that your income is consistent, as well as a two-year record of your occupancy status showing that you’re not constantly moving around.
Some lenders may make exceptions for the two-year employment history if you were in school for part of that time pursuing the career you are now working in.
Of course, there’s also your credit history. Usually, the higher your credit score, the lower the interest rate you’ll qualify for. That said, there is almost always a minimum credit score requirement to qualify.
What Do I Look for in Homes?
Purchasing a home is one of the biggest financial decisions a person will make. Making sure the home you are considering is a good financial investment should be your primary concern. Beyond that, the type of home you purchase comes down to a lot of personal preferences. Sitting down with a Realtor to discuss all those preferences can help them to point you in the right direction.
Do I Need a Home Warranty?
A home warranty is a contract between a homeowner and a home warranty company that provides for discounted repair and replacement service on a home’s major components, such as the furnace, HVAC, plumbing, and electrical systems. A home warranty may also cover major appliances, such as washers and dryers, refrigerators, and swimming pools.
What Should I Expect at Closing?
You’ll sign many documents. Rely on your buyer’s rep to review these documents and answer any questions you may have. Once all documents are signed and all monies have been paid, possession is transferred and you receive the keys to your new home. Be sure to keep your closing documents in a safe place for future reference. Some of the expenses associated with your home purchase are tax-deductible.
What Is Pre-approval?
A pre-approval is a preliminary evaluation of a potential borrower by a lender to determine whether they can be given a pre-qualification offer. Pre-approvals are generated through relationships with credit bureaus which facilitate pre-approval analysis through soft inquiries. Pre-approval marketing can provide a potential borrower with an estimated interest rate offer and a maximum principal amount.
Am I Ready to Rent?
Although you may feel ready to get out on your own, or get back out on your own, make sure your finances are in order before you take the leap. Take a look at some rental listings in the areas in which you are interested in living and get an idea of how much you’ll have to pay to live there.
What Should I Offer?
As your agent, my advice on what amount you should offer when purchasing a home is based on several factors, many of which are fluid based on the economy, the area in which you are purchasing, and whether this will be your long term residence or an investment property.
Can I Ask You for Advice?
Of course you can ask me for advice! As long as that advice is limited to the real estate process. Realtors cannot give advice regarding anything other than the real estate purchase and selling process. Any construction, inspection, financial, tax, etc advice should be referred to the expert ion those fields