Frequently Asked Questions

Q: What is the first thing I need to do if I want to purchase a home?
A: You need to call a reputable mortgage lender and get pre-approved where you credit has been run. Then you will know you can qualify for the homes you are viewing. Also, this will make your offer stronger when you find a home because your agent can attach a pre-approval letter with the purchase agreement.

Q: Do I need to save a lot of money before I buy a home?
A: No, there are loans available such as bond loans that offer an assistance to help with the down payment. There are also 100% conventional loans and you can ask the seller to assist you with the closing costs. This is why you want to work with an agent that is familiar with finance to assist you in your home purchase.

Q: What kind of front money will I need when I apply for the loan?
A: You will need a deposit with the purchase agreement. This amount will vary. It depends on the amount the seller is willing to accept to tie the home up. This deposit is usually around $500 to $1,000 which is deposited in listing company escrow account and returned at the closing table to be applied towards your fees. When go to the lender you will need to be prepared to write a check for appraisal usually around $350 to $400. This is to start processing the loan. In addition, you will need to pay for a credit report. This can vary but it is usually around $55.

Q: What kind of documents will I need to bring to the lender when I apply for the loan?
A: You will need to bring your driver's license, your social security number, your two most recent pay stubs, your last two bank statements: checking and savings; your last two tax returns and your checkbook to pay for the appraisal and credit report. Sometimes all of these documents are not necessary if you qualify for a stated program.

Q: What if the home needs some repairs?
A: Your Board of Realtor Purchase Agreement that we use allows you to make a professional inspection within ten days of acceptance of the contract. If any defects are found, you can have the agent turn in an inspection request form asking that they be corrected. This form must be approved and signed by the seller.

Q: What if the home has termites?
A: Your contract states the seller must get a licensed termite company to inspect the property no more than 30 days prior to the closing. If termites are found to be active, the seller must have it treated.

Q: Do I have to use the insurance company the lender chooses?
A: No, you pick the homeowners insurance and give that quote to the lender. It is best to get quotes from more than one company and check your options of $500 to $1,000 deductible.

Q: Will I lose my deposit if I can't get the loan?
A: Not if you attempt to get the loan, that means you have to make an appointment with the lender, allow them to run your credit and then if you do not qualify, the lender will provide you with a denial letter which releases you from the contract. However, if you do not try to get the loan after signing an agreement to purchase you could be found in default of the contract and lose your deposit.

Q: How will I know I have a clear title to the property?
A: The title company that closes the loan will do an abstract on the property. This will let them know if there are any judgments or liens against the property. Also the lender will require title insurance to protect them. There is an Owners Title Policy that you can buy to protect you at the closing if you choose to purchase it as well.