Do I need to be pre-approved for a mortgage?
Fear of being rejected for a home loan is one of the main concerns for first-time home buyers. To lessen the stress, you may want to get pre-approved for a loan before looking at prospective homes. This will not only help you feel more confident, it will also give you an advantage when there are multiple offers for a specific home. The fact that your loan has already been approved is of great value to the seller: because it shortens the purchase process and there is less of a chance that the buyer will back out of the sale.
How much is my mortgage payment?
The costs involved in the purchase of a home can be overwhelming to first-time buyers. However, with our help, you can calculate out how much you will be able to pay each month in mortgage payments, and from there, what prospective homes offer a feasible payment plan.
How much is my down-payment?
The down-payment amount varies depending on the value of the home you choose and your mortgage lender. And in some cases, first-time home buyers can purchase a home with no money down. Although it varies from state to state, most offer government-funded programs for first-time buyers that help people buy a home with no down-payment. As your Buyers Agent we will be able to explain the different options available to you.
How much are my closing costs?
First-time buyers often forget to consider the closing costs when making an offer on a home. Paying closing fees plus the down-payment can add up to quite a sum to raise before the final papers can be signed. However, a smart first-time buyer takes this into account before making an offer, and with our professional help, the costs can be estimated in advance.
How do I make an offer on a home I like? Don't feel pressured into making an offer on the first home you see. This a common mistake of many first-time home buyers. Make sure you view different homes to get a feel for the marketplace. When you do decide on a home to make a bid on, we will work with you to get all of your questions answered first before making an offer. But don't wait too long to make an offer. The longer you wait, the greater the chance other prospective buyers may place offers, making it harder for you to negotiate a good deal.
Should I use One Realtor?
Yes, otherwise you will see the same homes over and over. Real Estate agents belong to the MLS (multiple listing service) which gives them access to ALL homes currently on the open market, regardless of who has it listed. You should hire one agent to represent you and only look at homes with that one agent. To learn more about how Buyers benefit by working exclusively with one agent click here.
Do I need good credit?
Mortgage companies use your FICO score to determine what type of program you qualify for. Some programs allow lower FICO scores and some simply just raise the interest rate.
Renting vs Owning?
If you own a home you will save a significant amount of taxes plus build valuable equity.
There are no silly questions
Above all, remember that there are no silly questions. Make sure you understand and are comfortable with every aspect of the transaction. As your Buyers Agent, we can be an invaluable asset in helping you make educated decisions so that your first-home purchase is a rewarding experience.
We are sure you have many more questions and we would be happy to answer them. If you would like to set up your initial consultation, give us a call anytime at 319-339-7721 or drop us an email at Vermace@VermaceRealty.com.