We are happy to answer your questions regarding real estate transactions at any time — please email, call or contact us through the website. In the meantime, below are answers to some common questions.
What the first step of the home buying process?
Getting pre-approved for a mortgage is the first step of the home buying process. It’s important to know how much you can borrow because knowing how much you can borrow narrows down home searching to suitable properties.
How long does it take to buy a home?
From beginning the search online to finalizing the deal, buying a home takes about ten weeks. Once a home is selected and the offer is accepted, the average time to complete the escrow period is about 30 days under normal market conditions, though a cash transaction will close faster than that.
What kind of credit score do I need to qualify for a mortgage?
Most loan programs require a FICO score of 620 or better. Borrowers with higher credit scores may qualify for a better loan, often resulting in a lower down payment requirement and a better interest rate. Conversely, home shoppers with lower credit scores may need to bring more money to the table (or accept a higher interest rate) to offset the lender’s risk.
What is a seller’s market?
In sellers’ markets increasing demand for homes drives up prices. Some of the contributing factors are interest rates trending downward, a short-term spike in interest rates and low inventory.
What is a buyer’s market?
A buyer’s market is characterized by declining home prices and reduced demand. Several factors may affect long-term and short-term buyer demand, such as an economic disruption, short-term drop in interest rates, high inventory or natural disasters.
Who pays the agent fees for the transaction?
For most home sales, there are two real estate agents involved in the deal — one that represents the seller and another who represents the buyer. Listing brokers represent sellers and charge a fee to represent them and market the property. Agents who represent buyers are compensated by the listing broker for bringing home buyers to the table. When the home is sold, the listing broker splits the listing fee with the buyer’s agent (and buyer does not pay any fees to the buyer’s agent).
Do I need to do a final walk-through?
Home inspections are not required, it is prudent to get one. Final walk-throughs give buyers a chance to make sure nothing had changed since the first visit. If repairs were requested as part of the offer the final walk-through will ensure that everything was done per the terms of the contract.