Frequently Asked Questions on Buying A Home
1. “I heard that it is really hard to get a loan for a house purchase right now. Is that true?”
It is true that banks are more picky on who they are lending mortgage money to than they were 5 years ago. At the same time we are lending money to people to purchase homes all the time. Each situation varies, but it is definitely common to be able to qualify for a mortgage to purchase your next house.
2. “Should I find a house that I am interested in first, or should I get prequalified first?”
The best first step is to get prequalified. If you have already found a house you are interested in, we can still work with you, but getting prequalified first helps you get a better idea about the type of house you could afford and what your home payments might be.
3. “How much money will I have to come up with to buy a house?”
That depends on the cost of the home you are buying and the type of mortgage you choose. Typically, there are three areas you will need to pay up front in purchasing a home.
- Earnest Money- This is the deposit you make on a home when you submit an offer so that the seller knows you are serious.
- Down Payment- For an FHA loan, the minimum down payment is 3.5%, other loans have down payments starting at 5%. You can make as large of a down payment over these minimums as you would like.
- Closing Costs- The costs associated with processing the paperwork to purchase a house.
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