Frequently Asked Questions
Am I Ready to Be a Homeowner?
Nobody besides you can make this decision, but factors like your ability to obtain and pay a mortgage, the amount of time you plan on living in the home, your ability to maintain it, and other personal or family needs are all important factors to consider.
What Should I Expect at Closing?
As long as the title company has received all the necessary documentation prior to the closing, it is a short and simple process that usually takes less than an hour. Before closing a preliminary settlement statement is issued by the title company detailing all the expenses a credits of both parties.
Is Renting or Buying Better?
Buying a home can be one of the most powerful ways for an average person to build wealth through equity (both the money paid towards a mortgage’s principal and the home’s price appreciation). However the costs associated with selling a home will reduce a homeowner’s amount of equity at the time of sale, making short term ownership much less advantageous, or even costly.
What Is Pre-approval?
Pre-approvals (or pre-qualifications) are usually letter issued by lenders that state a homebuyer’s ability to obtain financing and in what amount. A variety of factors are considered including credit scores, income, and existing debt, among others. For more detailed qualifying criteria speak to an agent or consult your mortgage lender.
How long does the process take?
Once a home is under contract the majority of closings occur within 30-45 days. This typically provides sufficient time for inspections, appraisals, any required repairs, title work, and final lender approval of the new mortgage (when applicable).
What Should I Offer?
This is a question without a simple answer. A variety of factors can lead you to a best guess including the current state of the local market, the home’s list price relative to the sale price of similar properties, and the amount of time a listing has been on the market, among others.
Do I Need a Home Warranty?
Home warranties can offer a period of protection against unforeseen repairs. They can be purchased either by the buyer or the seller and cost between $300-600 per year on average. Factors like the condition of a home or your ability to absorb the cost of a major repair should inform your decision.
Who do I call when I'm interested in a home?
Any Realtor can show any home with very few exceptions so call whoever you feel most comfortable working with. The listing agent works on behalf of the seller and typically a cooperating agent will represent the buyer, however in some situations the same agent will represent both parties in what’s known as a limited agency situation.