Frequently Asked Questions

Find quick answers to your real estate questions in our FAQ section, covering topics like getting started, property types, and commission rates.

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Why do I need a real estate agent?

There are several reasons why working with a real estate agent can be beneficial: Expert knowledge, negotiation skills, access to listings, paperwork and legalities, time and stress saving, market insight, recommendations for services, emotional support.

What is the first step in buying a home?

The first step in buying a home is getting pre-approved for a mortgage. (Understand Your Budget, Know Your Financing Options, Strengthen Your Offer, and Save Time)

What kind of credit score is needed to buy a home?

The credit score needed to buy a home can vary depending on the type of loan you're applying for, but here’s a general guide:
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● 620 or higher is typically required for conventional loans.
● 580 or higher is acceptable for FHA loans.
● 620 or higher for VA loans and USDA loans (with some flexibility).

How long does the process take to purchase a home?

While 30 to 60 days is typical, the process can take longer if there are complications or if you're taking your time finding the right home. If you're in a hurry, some steps, like pre-approval and making offers, can be expedited.

Should I sell my home before buying a new one?

Whether you should sell your home before buying a new one depends on your personal financial situation, the local real estate market, and your level of comfort with risk. There are pros and cons to both approaches.

What are "closing costs"?

Closing costs are the fees and expenses that both buyers and sellers need to pay when finalizing a real estate transaction. These costs are paid at the "closing" or settlement, which is when the sale is officially completed, and ownership of the property is transferred.

Here’s a breakdown of typical closing costs:

For Buyers:

  1. Loan-related Costs:
    ○ Origination Fees: Fees charged by the lender for processing the loan.
    ○ Appraisal Fee: Cost of hiring a professional to appraise the value of the property.
    ○ Credit Report Fee: Lender’s cost for pulling your credit report.
    ○ Inspection Fees: Home inspection, pest inspection, or other types of property inspections.
    ○ Title Search/Title Insurance: Ensures the title to the property is clear and insures against any future title disputes.
    ○ Attorney Fees: In some states, buyers need to hire an attorney to review or prepare documents.
    ○ Mortgage Insurance: If applicable (e.g., PMI for conventional loans or FHA mortgage insurance).
  2. Prepaid Expenses:
    ○ Property Taxes: Buyers often have to reimburse the seller for taxes they've already paid, or you may prepay taxes for the first year.
    ○ Homeowners Insurance: Buyers may need to pay the first year's premium upfront.
    ○ Interest: Some lenders may require that you prepay the interest from the closing date to the end of the month.
  3. Down Payment: This is the money you put down upfront toward the purchase price of the home, usually a percentage (e.g., 20%).

For Sellers:

  1. Agent's Commission: This is usually the largest cost for sellers, typically 5–6% of the sale price, which is split between the seller’s and buyer’s agents.
  2. Repairs: If the home inspection reveals issues, the seller might agree to pay for repairs or offer a credit to the buyer.
  3. Title Insurance: In some areas, the seller is responsible for purchasing title insurance for the buyer.
  4. Transfer Taxes: Some localities charge a tax to transfer the title of the property from seller to buyer.
  5. Outstanding Liens or Mortgages: If the seller still owes money on the property, that amount is paid off at closing.

What is earnest money?

Earnest money is a good-faith gesture that shows you're serious about buying the home. It’s typically refundable if the deal falls through due to contingencies, but if you back out for other reasons, you could lose it.

How much do I have to pay an agent for commission?

Commission is negotiable, there are no set fees. However, every agent should be able to give you a value proposition when discussing what they charge to list your home or assist in finding you a home.

Do I need a home inspection?

While a home inspection is not legally required, it’s highly recommended and often considered essential when buying a home. Here’s why:

Why You Should Get a Home Inspection:

  1. Uncover Hidden Problems
  2. Negotiation Leverage
  3. Peace of Mind
  4. Lender Requirements
  5. Protect Your Investment

Types of Inspections You Might Consider:
● General Home Inspection
● Termite Inspection
● Radon Test
● Mold Inspection
● Sewer Line Inspection

How Much Does It Cost?
Varies by location, size of the home, and the type of inspection(s) needed.

How much is my home worth?

The value of your home in your current market can be determined by a Realtor completing a Comparable Market Analysis. This is a process where your home is compared to recently sold homes in your area. This is not an appraisal. Appraisal must be done by certified appraisers.