Here are some of the most fundamental and common first time home buyer questions I get asked regularly and my best shot at summarizing them so you can digest them.
Purchasing a home involves several steps, and it’s different for everyone. There are so many moving parts that can affect your experience, but to sum it up in a very watered down way, it goes like this…
1. Determining what you can afford. You might find this post helpful during this step.
2. Finding a real estate agent. Here are questions to ask when interviewing Realtors.
3. Locating a property.
4. Making an offer.
5. Securing a loan. Here are some mistakes to avoid.
6. Appraisal and inspection.
7. Closing on the home.
A mortgage pre-approval is a process that allows a lender to look at your financial history and verify your ability to pay back a loan. This process helps to ensure that you receive a loan that you will be able to repay.
A pre-approval letter is what they’ll provide to you once they’ve verified your financial history and agree to move forward in the home buying process.
A pre-approval is NOT a promise to lend to you however. It’s just a quick scan of your financial situation and basically says, looks good but we’ll need more info before we can give you the money.
A pre-approval letter is sufficient to offer on a home but a final mortgage approval is required to successful purchase (and close) on a new home.
Finding the right real estate agent is an important step in the home buying process. Be sure to do your research and ask questions. You can start by asking friends & family if they’ve had a great experience with anyone.
After you’ve found 1 or 2 viable options, here are a few questions you can ask.
– How familiar are they with the area in which you are buying?
– Are they knowledgeable about the market?
– Are they available when you need them?
– Are they willing to take time to explain things to you?
Closing costs are fees associated with the purchase of a home, and can include things like loan origination fees, appraisal fees, title insurance, and more. These fees can vary from state to state, and can range from 2-5% of the purchase price.
Your Realtor, Lender, and Title Closer will help you determine what your unique closing costs will be. You can also find a helpful calculator here.
This list of common first time home buyer questions is the tip of the ice berg and that’s why it’s so important to find a Realtor who is committed to educating you in the beginning stages, before you jump in head first.
I hope this information was helpful – it’s always my intention to educate and empower you to make the best real estate decisions for you.
If you’re ready to start your home search, reach out! I can set up your home search in minutes.
Have a home to sell? Start here & I’ll email you a free home valuation.
You can find more helpful information on my YouTube Channel At Home in Saint Paul.
Common First Time Home Buyer Questions