Common Questions Asked When Buying a Home

It is important to be educated about the home buying process before you embark on it. Being educated is essential. If you are able to get answers to some of the most common questions before you start looking for a home, it will create a smoother home buying process. Be sure to check out my recent post about questions to ask when buying a home. If you have just started to consider purchasing your first home, here are some things to think about.

Should I Purchase a Home or Continue to Rent?

This is a question that many homebuyers may be asking themselves, should I buy or should I continue to rent? Homeownership has many advantages. The goal when you invest in real estate is for it to appreciate over time. The best thing you can do is listen to your Real Estate agent about good locations that will meet your needs. Hopefully, your new home should increase in value over time. Ideally, you work with an agent who is familiar with the area and explain the benefits!

If you have recently moved away from home, renting may be more beneficial than buying. Additionally, you may not be able to qualify for a mortgage until you have an employment history, good credit, and money for a down payment.

Ultimately, renting a home may be a complete waste of money. You could be paying for a mortgage and yielding the benefits in lieu of making money for a landlord.

If you already know you want to own a home in the near future, then it is essential to start planning on transitioning from a renter to a homeowner. The more you are able to do to strengthen your financial position, the greater likelihood that you will be able to purchase a home.

Do I Need My Own Real Estate Agent?

You should always hire your own real estate agent. You might think you will save money without your own agent, but in reality, your agent will negotiate on your behalf. This is still the ideal way to purchase a home.

There are multiple reasons why you want to utilize your own real estate agent. You will want to hire one who is knowledgeable about the local area.

Additionally, there are many reasons why you need a buyer’s agent during the pandemic. Guidelines have changed for showing a home, and you want to work with an agent who is aware of the current guidelines to protect you.

Buyer’s agents are also recommended if you are considering purchasing waterfront homes or any other specialty type of property.

What is Earnest Money

When a seller accepts your offer to purchase their home, they will want to know that the buyer is committed. This allows the seller to take the home off the market and proceed with the sale to you. The listing agent will change the status from active to active under contract. The earnest money deposit demonstrates to the seller that you are committed to the purchase. It gives the seller a guarantee and means that buyers can’t just speculatively make offers on multiple homes. The earnest money deposit is generally approximately 3% of the purchase price. This money is deposited into escrow within a certain number of days specified in the purchase agreement. Escrow is considered to be a neutral party between the buyer and the seller.

What is the Amount of the Down Payment Needed?

For many people, the amount of money they can spend is dictated by their personal finances and what they are qualified for with their lender. Buyers are free to qualify with any lender who they feel most comfortable, however, be sure to choose a lender who is experienced and is be able to get the job done.

Even More Real Estate Questions by Sharon Paxson | Realty Biz News