Frequently Asked Questions
Am I ready to be a homeowner?
Are you paying rent? Do you want something that is truly YOURS? Do you know that you could afford a home for what you are paying in rent? Do you realize there are 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 not only take pride in home ownership, but you are establishing yourself in a community, building better credit & building equity and wealth in your portfolio. Home ownership is a commitment. Are you ready to make the leap?
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, build better credit, & stability. Besides, ever want to make changes to your home? When renting, you typically cannot make any changes at all to the property. When you own your own home, you can personalize it by adding color and texture to walls, changing flooring, etc. Of coarse with home ownership comes the responsibility of the upkeep of a home but if you maintain your home properly, you should see your 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 determine what you can afford in a house payment. Ask any qualified lender on the link provide & get started on your path to home ownership!
What do I look for in homes?
FIrst of all, get pre-qualified with a lender. You may use any provided on the link on this website or your bank or any other lender you feel comfortable in doing business. Knowing what you can afford & the type of loan you qualify for are the first steps. The type of loan you are qualified for will dictate what type of homes you can look for. But, there are loans out there for about anything so its 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. And, if you are looking for a fixer upper, you will need far more cash because not all loan programs will finance a home that is 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 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 & its time to 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 before signing any documents. The sellers typically will sign their documents separate from the buyers. Plan on approximately 1 hour on average.
What is pre-approval?
When you are ready to purchase & have met with a loan officer of choice, the loan officer will 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. Two, a pre-approval makes any offer stronger showing the seller you are qualified to purchase. The pre-approval letter will accompany any offer.
What should I offer?
The amount of the offer really depends upon a few factors, the most important is market conditions. How competitive is the market place? Is it a sellers market or buyers market? Are there more buyers than homes available in your price range? Or more homes than buyers? A competitive market analysis will show what the trends in sales are in a particular subdivision or area & is a useful guideline in making an educated decision on what to offer.
Can I ask you for advice?
ALWAYS ask! No questions is a bad question. Its 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.