BUYERS' FREQUENTLY ASKED QUESTIONS

Q. Should I buy or keep renting?

A.  Buying is usually better if you:

• Plan to stay 3-5+years
  Want to build equity
  Prefer stable payments

Rentng may make more sense for flexibility or short-term plans

 

Q. How much home can I afford?

A.  Affordability depends on your income, debt, credit score, and current interest rates.  Most lenders follow the 28/36 rule:

• Max 28% of gross income on housing
• Max 36% on total debt

A lender pre-approval gives the most accurate number - but comfort level matters just as much as qualification.

 

Q.  How much do I need for a down payment?

A.  It varies widely:

• Conventional loans:  3%-20%
• FHA loans: ~3.5%
• VA/USDA: 0% (if eligible)

Putting less than 20% down usually means paying private mortgage insurance (PMI)

 

Q.  What is pre-approval and why do I need it?

A. Pre-approval is a lender verifying your financials and approving you to to a loan amount.  It:

• Shows sellers you're serious
• Stregthens your offer
• Speeds up closing

In competitive markets, it's essential, and even in other markets, most sellers will not execute a contract without first seeing a pre-approval.

 

Q.  What are closing costs?

A.  Closing costs are fees paid at the end of the transaction, typically 2%-5% of the purchase price including:

• Loan fees
• Title insurance
• Appraisal
• Escrow fees

Some sellers may help cover these depending on negotiations.

 

Q.  How long does the buying process take?

A.  On average:

• 1-4 weeks to find a home
• 30-45 days to close after going under contract.

Cash deals can close faster; financing and contingencies can extend timelinesQ. Should I buy or keep renting?

 

 

 

 

 

 

Q.  What credit score do I need to buy a home?

A.  Typical minimums:

• Conventional: ~620
• FHA: ~580 (sometimes lower with conditins)
• VA/USDA: flexible but generally 580-620+

Higher scores = better rates and lower monthly payments.

 

Q.  How do I choose the right neighborhood?

A.  Consider:

• Commute time
• Schools
• Safety
• Property values and future growth
• Lifestyle fit (walkability, amenities)

Visit at different times of day and research local trends. 

 

Q.  What happens during a home inspection?

A.  A licensed inspector evaluates the home's condition:

• Structure
• Roof
• HVAC
• Plumbing & electrical
• Addtional items and systems

Afterward, you can:

• Accept the home
• Negotiate repairs/credits
• Walk away if still during the Option Period

 

Q.  How much will my monthly payment be?

A.  Your payment typically includes:

• Principal + interest
• Property taxes
• Homeowners insurance

This is often called PITI.  Your lender will give you an exact estmate.  There are also HOA fees outside of the payment amount which could be paid monthly, quarterly, simi-annually or annually.

 

Q.  What is a Termination Option?

A.  A part of the contract where a buyer:

• Has the unrestricted right to terminate
• Has a negotiated period of time for the Option Period
• Pays a negotiable fee to the seller for the right to have the Option Period

During the Option Period, a buyer should negotiate any needed repairs/credits.