Frequently Asked Questions
Am I ready to be a homeowner?
Are you currently paying rent? Do you want something that is truly YOURS? More than likely you could afford a home for what you are paying in rent There are many 1st time home buyers programs available to qualified buyers that allow you to finance 100% with no money down. When you own a home, you are not only able to take pride in home ownership, but you are also establishing yourself in a community, building better credit, & building equity and wealth in your portfolio. Homeownership is a commitment and if you’re ready to make the leap, then we are here to help.
Is renting or buying better?
When you rent, your landlord wins. You get the pleasure of paying the rent each month but you have nothing to show for it other than, essentially, the roof over your head. Home ownership allows you to build equity and wealth for your future, while also establishing better credit, & stability. In addition, home ownership allows for more freedom and choice. When renting, you typically have very little say over any changes at all made to the property. When you own your own home, you can personalize however you see fit and truly make it your own. Of course, with home ownership comes the responsibility and upkeep of a home. However, if maintained properly, you should see your home’s value rise in the future.
What is the lender's formula?
The lender’s formula takes into account your income and debt obligations on a monthly and annual basis and determines what you can afford in a house payment. Ask any qualified lender from the links provided & get started on your path to home ownership!
What do I look for in homes?
Before searching listing services for a home, you will first want to get pre-qualified with a lender. You may use any of the lenders featured HERE under our financing tab or you may choose to work with your personal bank or perhaps any other lender you feel comfortable doing business with. Either way, Knowing what you can afford & the type of loan you qualify for are the very important first steps. The type of loan you are qualified for will dictate what type of homes you can look for. there are loans out there for about anything so it’s important to understand what you qualify for. For example, a first–time home buyer USDA 100% loan may exclude certain zip codes. Some loans may prohibit double-wide homes as an option you are looking for a fixer-upper, you may need far more cash because not all loan programs will finance a home that is in need of repairs.
Do I need a home warranty?
If you are purchasing a new construction home, the builder is required to provide a 1 year home warranty. If you are purchasing an existing home, a home warranty may be a good investment (typically costing less than $500 per year) & will cover certain components of the home with a low deductible.
What should I expect at closing?
Closing day is an exciting day wherein you’ll sign the loan papers & get the keys to your new home! Remember to bring proper ID with you. At closing, you will be required to provide proper ID (Like a driver’s license) before signing any documents. The sellers typically will sign their documents separate from the buyers. Plan on this process taking approximately 1 hour on average.
What is pre-approval?
When you are ready to purchase a home & have met with a your loan officer of choice, the loan officer will then provide you with a pre-approval letter. This is a document that states the amount of money you are qualified to borrow for a home purchase and the type of loan you qualify for. This is important to have for two reasons:. One, you want to look at homes within your price range & loan approval. And Two, a pre-approval letter makes any offer that much stronger, showing the seller you are qualified to purchase. The pre-approval letter will accompany any offer sent to a seller.
What should I offer?
The amount of the offer really depends upon a few factors, the most important is being market conditions. How competitive is the market place? Is it a seller’s or buyer’s market? Are there more buyers than homes available in your price range? Or more homes than buyers? A comparative market analysis will show what the trends in sales are in a particular subdivision or neighborhood & is a useful guideline in making an educated decision on what to offer.
Can I ask you for advice?
ALWAYS ask! No questionis a bad question. It’s better to ask too many questions than not enough. The purchase of your home may be the single largest investment you make in a lifetime. Make sure you understand everything, even if you have to ask it again.