Buying a home is an exciting time, but it also can be overwhelming.
Buying a home is an exciting time, but it also can be overwhelming. Laura works to try to take some of the stress out of the home-buying process, by helping you every step of the way, from searching for that perfect home, getting a pre-approval from a reputable mortgage company to home inspections, closing and moving in. Here are some of the most often asked questions from buyers, and answers. Don’t see your question here? Give Laura a call at (317) 702-0058 or send an email to Laura@talktotucker.com.
Q:
I’m ready to buy a house, what should I do first?
A:
The first step in buying a house is getting a pre-approval from a reputable lender, preferably someone you can meet with personally (not someone in a call center a million miles away). The pre-approval will help you determine how much house that you not only can afford, but you can afford comfortably. If you don’t have a lender, I can provide you with names of reputable, local lenders, just call me at (317) 702-0058 or email, Laura@talktotucker.com).
Q:
How many houses do I need to see before I get serious about making an offer?
A:
Do you believe in love at fist sight? That’s how it happens some times with home buyers. I’ve have several people see one house, and instantly fall in love without looking at any more houses. Now, that’s the exception, but it happens more often than you may think. When you start looking, you have to be open to the fact you may find a house quickly, yet, it could take several weeks or even months, and that’s OK. The key is understanding what you can afford, knowing what’s important to you for your next house, and being ready to make an offer when you find the house that meets all those needs.
Q:
How long does it take from the time I find a house until I move in?
A:
Like most things in real estate, the answer is – it depends. But, here are some general rules of thumb: As long as you have your pre-approval letter from your lender, it takes less than 30 minutes to write up the actual offer. Typically, buyers will give sellers 24 to 48 hours to respond to the offer. In some instances, the offer is accepted that day, but most of the time, it takes two to three days before terms are agreed upon by both the buyers and the sellers.
Part of your offer will include when you want to close on the purchase. This typically is 30 to 45 days. This could be sooner, if you are offering cash, or even longer if you are using special financing, such as rural housing. No worries, your lender and I will go over all those timelines before you ever sign on the proverbial dotted line.
Q:
Shouldn’t I have the inspection before I make an offer?
A:
In most cases, the inspection comes after you have a signed agreement on the purchase of the house. The purchase agreement will be contingent upon the inspection, and you will have a specified number of days (usually about 10) to have an inspection and then respond in writing to the seller if there are any major defects found during the inspection.
Q:
How much do I need for a down payment?
A:
The first step in buying a house is talking to mortgage lender that you trust to help you determine not only how much house you can afford, but the amount that is most comfortable for you. A good lender will give you options on the types of mortgages that may be best for you. Generally, however, you can put down as little as 5 percent for an insured conventional mortgage or even 3.5 percent for an FHA mortgage. The only two loans available that do not have a downpayment requirement are Veteran Administration (VA) loans and rural housing loans. Only veterans are eligible for a VA loan, while rural housing locals – also known as USDA – are only available in specific areas, and Laura can help explain which areas will qualify.
Q:
What other fees will I have to pay?
A:
This all depends on your purchase agreement. One thing to keep in mind is that buyers do not pay any real estate fees – even if you are building a new home. In Indiana, real estate fees are paid by sellers. It’s important that you get a “Good-Faith-Estimate” from your lender, so you will know up front all the fees associated with purchasing a home.
Some common expenses include:
Closing costs. This is the amount the title company charges, which typically is split with the seller, so that each side pays $150 to $200.
Costs of obtaining financing. These are fees that are charged by your lender, so it’s important that you get a Good Faith Estimate from your mortgage company, so you will know all the costs associated with obtaining a mortgage, which will include an origination fee, credit report, title policy and home appraisal.
Home inspection. Buyers should hire a home inspector to make sure there are no major defects. Buyers pay the home inspector at the day of the inspection.
Homeowner Association transfer fee. If you are buying a house in a neighborhood that has a property management association, it’s likely the property manager and/or Homeowner Association (HOA) will charge a fee to transfer your name as the new owner. This fee varies by neighborhood, and is split between the buyer and the seller.
Recording fees and other miscellaneous expenses. A recording fee is the amount charged for the title company to record your mortgage and deed with the county treasurer’s office.
Q:
Can’t I ask the seller to pay for closing costs?
A:
Yes. Often, buyers will ask sellers to provide a specific amount of money to pay for buyers’ closing costs and prepaid expenses. As we are preparing to write a purchase agreement, we’ll talk about whether it’s in your best interest to ask that the seller pay for your closing costs, costs of financing and pre-paid expenses that are part of your loan agreement. This amount will vary based on your lender, the type of loan that you have and house price.