Buying a home is a very exciting process, but one that comes with lots of unknowns and questions that can sometimes be difficult to give a clear answer. However, here are some of the most common questions I hear from home buyers:
How much should I spend on a home?
This is a tricky question to answer and varies dramatically from person to person. This will depend on income, current debt, credit history, and how much of a down payment to put down. One of the quickest ways to get a good sense of how much you can afford is to use an affordability calculator. A mortgage lender is going to be able to assess all aspects of your financial status to give you the best idea of what you can afford and provide you with a pre-approval letter.
How much money do I need to have ready to close on my home?
Most buyers need to be prepared with earnest money, closing cost, and a down payment. The down payment amount will depend on the loan, but the recommended payment is 20% of the sale price as the down payment. The closing costs are typically estimated at 3-4% of the mortgage amount. Finally, the earnest money is the money to show the seller that you are serious about the contract. This typically is about 1% but your realtor will be able to give you a better idea of what this will be specifically for your home purchase.
How quickly will I be able to close?
The average is 30-45 days for the mortgage to be processed and all the documents to be finalized. There are many variables that can make this run shorter or longer depending on the home, mortgage company, and paperwork processing. If you are choosing to pay cash for a home or property, the closing date could be less than the average of 30-45 days.
Should I get a home inspection?
Yes! I encourage all my buyers to get a home inspection. This will reveal any issues or concerns that may be going on with the home that may be invisible when you are walking around the home. A professional will be able to assess the home and tell you all that is wrong with the home. To find out more about what is inspected during a home inspection, check out my blog post here.
What happens if my offer is rejected?
This depends on from case to case, there are a few situations that can arise and no reason to panic quite yet. In some cases, there is still room for negotiation with the seller, other times it could be that you just had the lowest offer. In any situation, this is going to be the biggest perk of using a real estate agent— they will be able to negotiate and do all they can to get you the home of your dreams.
There are many different questions that I hear come up about buying a home. If you have another question about purchasing a home, or relocating to the North Texas area contact Sherry to get all your questions answered!
