Frequently Asked Questions by First-Time Home buyers

Buying a home isn’t like anything else you will do.  It can be a very stressful but exciting experience and without a doubt, if it is your first time buying a home, you will have a lot of questions.  Below are some of the most common questions asked to help you as you begin this process.

Q: Who is a First-Time Homebuyer?

A: Buying a home is still considered a key aspect of the American dream. As a first-time buyer, you have access to state programs, tax breaks, and federally backed loans if you don’t have the usual minimum down payment—ideally 20% of the purchase price for a conventional loan—or you’re a member of a certain group (see the Important callout, below). And you may qualify as a first-time buyer even if you’re not a novice.

• A first-time homebuyer, according to the U.S. Department of Housing and Urban Development (HUD), is someone who meets any of the following conditions:
• An individual who has not owned a principal residence for three years.
• If you’ve owned a home but your spouse has not, then you can purchase a place together as first-time homebuyers.
• A single parent who has only owned a home with a former spouse while married.
• A displaced homemaker who has only owned with a spouse.
• An individual who has only owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations.
• An individual who has only owned a property that was not in compliance with state, local, or model building codes—and that cannot be brought into compliance for less than the cost of constructing a permanent structure.

Q:  How long should I plan on living in my first home? 

A: Your first home likely won’t be your last home. It’s hard to predict where our families, jobs or lives will take us 10 years down the road. Buy the home you think you will need for 3 to 5 years from now; don’t worry it will get filled (stuff, pets hobbies, children)

Q:  Does it cost me anything to work with a Real Estate Agent if I am a buyer?

A:  Buyer’s representation is Free. The seller has negotiated the commission they pay. The agent working for the sellers is doing just that, work for the seller, if the buyer doesn’t have an agent the listing agents keeps the full amount. Remember they work for the seller not you as a buyer you will want someone who is advocating for you.

Q: Can my auto insurer provide my home insurance?

A:  Shop around for home insurance. Don’t just use the company that has your auto insurance. Prices can vary dramatically between companies for the same coverage so check with 3-4 different companies to get the best deal. This can make a big difference in your mortgage payment and closing costs since you set up an escrow account at closing.

Q: Can I have everything I want in my first home at a price I can afford and without having to do any remodeling?

A:  Keep an open mind while searching for home – Its important to have an open mind when you’re looking for your new home, especially for first-time buyers who are on a budget. Be careful not to think you are in an HGTV episode unless you actually are be realistic about is actually available which is why it is important to have a Realtor you connect with. They will help you stay within your budget. Remember that many cosmetic items in home can be replaced easily over time without spending too much.

Q:  Where do I start?  It seems like a very daunting process to buy a home.

A:  It’s OK to not know everything when buying your first home. That is what I am here for to be your Buyer’s Agent.

Q:  What is the difference between Pre-qualification and pre-approval?
A:  There’s a huge difference between a pre-qualification and a pre-approval a buyer receives from their lender. Click HERE to watch a short video from BankSouth Mortgage explaining the differences.  A pre-qualification means that a loan officer has received basic information from a buyer, such as income, assets, liabilities, job history, and perhaps even pulled a borrower’s credit report to determine their credit score. However, it does not mean that a qualified loan officer or an underwriter has verified what the buyer is telling them.

A pre-approval requires all of the same information from the buyer, such as credit, income, assets, and liabilities—but asks for the documentation to support this information as well.

Do you have other questions?  Please feel free to submit your questions and I will respond to you personally.