Typical Questions First Time Buyers May Have
1. How much money do I really need to buy a home?
It depends on how you are financing the home. FHA home buyers can offer 3% to the purchase of a home. There may still be some lender’s offering 100% financing but your credit score usually must be higher than average. Inspection costs are often times an out-of-pocket expense running anywhere from $250 – $500. This will need to be paid to the inspector at the time of inspection. Closing costs are also an expense you will need to bring to closing unless your lender has included it in the loan or the sellers are covering the cost. Also, when you put down an offer will want to include some earnest money to let the seller know you are serious about buying the home. This gets built into the loan at closing.
2. When do I get my earnest money back?
If the transactions completes, the earnest money will be a credit to you on your loan. If you back out of the deal for any reason that is not covered as acceptable under contract the seller keeps your money as a good faith effort for their trouble. If the inspection is not to your liking, or the seller backs out, or your financing doesn’t go through, you can usually get your money back.
3. How low can I make my offer?
Don’t worry about insulting the seller – this is business. The seller can always come back with a counter offer or refuse the offer altogether.
4. What is a contingency?
Contingencies are conditions the seller or buyer makes to complete the purchase. This could include the selling of another home, inspection contingency or financing contingency.
5. When do I have to start paying mortgage?
Your first mortgage payment is usually due 30 days after closing – the date will be included in your closing documents.