Frequently Asked Questions

Am I ready to be a Homeowner?

Owning a home is not all about affordability like some would lead you to believe.

Answer yes to the following three questions before you start looking for property and you will eliminate the primary reasons people regret buying a home.

Can you imagine living in the same place for a minimum of
5 years?

2. Do you have a secure job or have the ability to change jobs and earn the same or greater income as your present occupation?

3. Are you prepared to take on home repairs and maintenance?

If you answered yes to these questions, Congratulations. You’re on your way to being a happy homeowner.

What Is the Lender's Formula?

Most lenders like to see a payment not to exceed 28 % of your net monthly income. As a check and balance the lender will also add up all your monthly instalment debt, such as car payments, credit card payments, loans, etc., plus the estimated monthly mortgage payment.

This will give the lender an understanding of your debt-to-income ratio.

A percentage most lenders consider acceptable is 42% of your net monthly income.

What should I consider when shopping for a home?

There are many factors to consider, the top four are location, quality of construction, age of all features and Holding cost.

Location is the first thing you want to check off as Ok. The next is the quality of the structure. Third, learn the age of the roof, windows, hot water heater, plumbing, etc. and the last of the top four is finding out the current holding cost, such as utilities, maintenance. Insurance and taxes, etc.

How much money should I plan on having for a down payment?

A rough estimate is 5 to 26% of the purchase price as a minimum. It all depends on the Finance; FHA, VA or conventional.

The amount you will need to buy a home includes the following cost. The down payment, inspection fees, Insurance, Cost to secure your loan and expenses tied to closing cost.

Since cost are subject to change. I suggest having a discussion with one of our specialist to learn what the latest is for financing and the other cost related to a home purchase.

What Should I expect at closing?

Have your agent provide an estimate for closing cost based on what you anticipate spending for a home.

A good estimate is between 3 to 6 percent of the purchase price, This is in addition to your required down payment by your lender.

What is the difference between preapproved and prequalified?

Being preapproved means you have furnished all documents to a lender supporting your claim for income and expenditures.

Whereas they have pre-approved you for a loan amount.  Prequalified is based on verbal information with no promises they will issue a loan.

A quick note… A preapproval letter attached to an offer, indicates you are a serious buyer and you have already gone through the loan approval process.

What should be done before purchasing in a neighborhood?

Licensed Real Estate agents cannot share certain information that can hurt the resale value of property. 

Because of such, I recommend you contact the county development department and find out about property zone uses close to a desired property and any possible developments that are scheduled or being considered.

Second, go online and find current crime statistics for the area and what the addresses are for registered sex offenders.

Lastly, I strongly recommend driving the neighborhood and visiting with a few of the residents. Let them know you are considering a move into the area and are curious to learn about their neighborhood. You may be surprised what you will find out.

How much will I have to pay a REALTOR for helping me buy a house?
Usually nothing. The seller pays the realtors fees in most cases. When signing a buyers agreement, look to see what your obligations will be before signing.
Should I get a home inspection?
Most definitely.. Always get a home inspection. The expense of getting a quality inspection may cost a few hundred dollars compared to thousands of dollars in unexpected repairs.    
Do I Need a Home Warranty?
On re-sale homes regardless of the age. I always recommend a home warranty. Everything could work fine the day of closing, then before the year is up, an appliance could need repairing or a water heater could fail or a host of other things could need your attention. >What the warranty does.. It provides a little peace of mind and can reduce the burden of you paying all the repair cost.