Buying a house raises a lot of questions. Over the years, we found that buyers we work with ask similar questions. We answer all of those questions (and more!) below.
What do I do first?
Speak with a lender and get prequalified.
How do inspections work?
You have an inspection deadline and within that time frame get a general inspector or specific inspectors, plumbers, electricians, etc. to inspect and point out any potential issues with the home. At that time, as a buyer, we submit any repair requests to the seller within the deadline.
What will my out-of-pocket costs be in the home buying process?
- Most offers include an offer of earnest money … it’s kind of like layaway since it applies to the purchase. This lets the seller know you are serious about their home. If they take your offer, to some degree, other buyer’s lose interest. Even though they do NOT get your earnest money, it at least lets the Seller know you are a serious buyer.
- If you’re getting a loan, you pay closing costs, these are the costs of securing the financing and include things like the appraisal fee. These figures are usually 2-3% of the purchase price. A $200,000 purchase may have closing costs of around $6,000. There are ways to ask the seller to pay these costs.
- Inspection fees run $250 - $600 on average but can be more depending on what the home demands. There is a way to ask the seller to pay these costs as well.
- Down payment: Depending on what type of loan you qualify for, you may need to have money down. 20% down is best in order to avoid other costs and yet there are programs that allow 0% down and others that require only 3.5% down.
How long does it take to get possession of the home I am buying?
Customarily, it takes 35 – 45 days from contract to closing which is normally when you get possession unless you and the seller have agreed to something else in the contract.