As a realtor, you tend to hear the same questions repeatedly from people who are looking to buy a home for the first time. And, it makes sense, because making the leap to buying a home can be scary and confusing, and no one teaches you how the process works in school or at all until you are in the middle of doing it already. So, to help everyone out, we’ve compiled a list of the top 5 most frequently asked questions from homebuyers.
- What is the First Step in the Homebuying Process?
- The Mortgage Pre-approval – Before you can purchase a house, you need to know how much you can afford and if your bank can approve your mortgage. This means getting pre-approved for a loan before beginning your search.
- How Much Do I Have to Pay a Realtor as a Homebuyer?
- Nothing – Usually, you do not have to pay a realtor anything as a buyer. The way that we get paid is that the seller pays a realtor a fee, and then the listing agent pays the buyer’s realtor for bringing the buyer to the house and helping to facilitate the transaction.
- What Does My Credit Have to Be?
- Around 620 – it is recommended that all new buyers have a credit score of 620 or higher, and the higher the credit the better the lending terms become. However, it pays to do your research, especially if your credit is below 620. There are some lenders and programs who will approve lower credit, and your loan officer will be the best source of advice for lending requirements.
- How Much Do I Need for a Down Payment?
- Probably 3-5% – The answer to this question depends entirely on your loan type, but most of the time it is safe to be able to pay 5% of the purchase price down. Some conventional loans only require 3% down, and some government-backed loans require no money down at all. This is another category where it pays to do your research to see what types of loans you qualify for and what you will have to budget for a down payment.
- What’s the Best Advice for First Time Home Buyers?
- Trust the Process, and the Professionals – As soon as you tell friends and family that you are looking to buy your first home, you will be flooded with advice from everyone. Some of this might be good advice, but some of it might be based completely on personal experience and could lead you down a bad path. The people who know the business best are the people who work in the business, so if you have any questions or subjects that you are struggling with, they are the ones you should turn to first.