FAQs For First-Time Buyers

Dated: February 3 2021

Views: 140

FAQs For First-Time Buyers

It’s tough to decide whether it’s time to get out of the renting game and buy, especially in this market. There are pros and cons to buying, and we’re here to answer all your questions.

Do I need to have the full 20% down payment?

Nope! There are several options for you to buy a home without paying 20% down. If you have excellent credit, you may be qualified for as little as 3% down. However much you decide you can put down may impact whether you need Private Mortgage Insurance or PMI, PMI is required for down payments below 20%.

Do I need a Realtor when buying a home?

Yes, I strongly recommend hiring a Realtor. A Realtor will represent your best interests, and not having one can make the buying process more difficult. 

Who pays the Realtor fees when buying a home?

In most cases, the seller pays the Realtor fees. 

How much should I offer the sellers?

You decide! Your Realtor can offer advice, but you determine how much you offer. If your offer is rejected, you may be able to come back with a counteroffer. 

How long does the seller have to respond to my offer?

It can vary from 12 hours to 3-4 days. 

What do I need to qualify for a loan?

Mortgage lenders consider employment history, credit score, how much you’re putting down, and your debt-to-income ratio to determine if you qualify for a loan. You should have a stable employment history, a good credit score, and little debt. Debt can make the process of getting a loan more difficult because lenders aren’t 100% convinced you’ll be able to pay your mortgage consistently. If you have a credit score of at least 620, you will meet the most popular first-time homebuyer programs’ requirements. 

Will I have to pay closing fees?

Every mortgage lender is different, so check with them to know the details about closing costs. Closing costs include things like an appraisal, attorney, title insurance, and documentation fees. 

What is pre-qualification?

Pre-qualification is an estimate of a mortgage you can afford to pay. It doesn’t guarantee a loan but can give you a better idea of your options.

Do I need a home inspection?

Some lenders require you to get a home inspection to make sure the home meets safety requirements. If your lender doesn’t require an inspection, you should still get one. The inspection will inform you of any problems you want to be aware of, like an outdated HVAC system or structural issues. Inspections take place after you go under contract on a home. 

Do you have more questions? We’re here to help. Contact us for more information about buying your first home, realestate@thecouturegroup.com or via phone at 303-459-2162. 

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Holly Couture

At The Couture Group we are a team of experienced and dedicated professionals who bring a wealth of knowledge and expertise to buying and selling real estate! Holly Couture founded The Couture Grou....

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