Buying a Home
Buying a home is one of the most important decisions that you will probably ever make. Whether it is your first home or your tenth we will make every effort to make it as painless as possible. Listed below are some common questions and suggestions, however we would still like to talk with you, so give us a call, text or email today.
How do I buy a home?
- Meet with a Realtor and discuss your needs such as: location, number of bedrooms & baths, price range, school district and condition of the home
- Get prequalified (look at the vendors page for possible companies)
- Get signed up on a site to receive new leads as new homes come available
I have found my home what is next?
- The most important thing is to get the home under contract which will be agreeing on a price and closing date
- This will give up a set time that you have to close the property
- You will have to important dates to deal with first is the closing date or settlement date and the other is due diligence date, this is the time that you will get your home inspection done, financing arranged, appraisal completed, survey if needed, insurance in place, any zoning and or utilities arranged and pest inspection (WDIR)
- Up to any time before 5:00 pm of the due diligence date you may withdraw from the contract and can retain your earnest money but not your due diligence fee.
- Any discrepancies found in the home inspection can be negotiated between the buyer and seller
- Any wood destroying insects have to be treated by the seller before the property is transferred
What are closing Cost?
- Closing cost are made up of several different things but these are examples
- Loan origination fee or funding fees for FHA, VA and USDA loans
- Appraisal Fee
- Flood Certification Fee
- Insurance for one year and four months normally
- Property Taxes for one year and four months normally
- Home Inspection Fee
- Wood Destroying Insect Report (WDIR)
What is Escrow?
Escrow is added to the loan payment and includes Property Taxes and Homeowners Insurance, Escrow can change from year to year if there is an increase in the Property Taxes or Homeowners insurance. Escrow is not required if you finance less than 80% of the home value or the homes was a cash purchase
Can the seller pay closing cost?
- Yes it can be done at the time of negotiating the price of the home that the seller pay some or all the closing cost, however if you do not close then you are responsible for the cost that have been accrued up to the date of cancellation, however some loans limit the amount that the seller may pay, check with your loan officer
What is PMI ?
- Principle Mortgage Insurance (PMI) Is insurance that is required by lenders when the amount of the loan exceeds 80% of the loan amount. This insurance will go away at different times varying on which type of loan you obtain.
How long does it take to close?
- If it is a cash offer then it can close in as little as 10 days
- If it is a financing offer it normally takes 6 to 8 weeks to close
- Being prequalified will mean a shorter closer and the loan officer can start as soon as offer to purchase has been signed by buyer and seller