Frequently Asked Questions

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Getting pre-approved for a mortgage is the first step of the home buying process. Getting a pre-approval letter from a lender gets the ball rolling in the right direction. You need to know how much you can borrow. Knowing how much home you can afford narrows down online home searching to suitable properties. 

From start (searching online) to finish (closing escrow), buying a home takes about 10 – 12 weeks . However, this may vary based on the amount of time it takes you to find your desired home. Moreover, if they are multiple buyers, being outbid can significantly alter the timeline. 

In sellers’ markets, increasing demand for homes drives up prices.

 A buyer’s market is characterized by declining home prices and reduced demand.

Home shoppers pay little or no fees to an agent to buy a home. Agents who represent buyers are compensated by the listing broker for bring buyers to the table. When the home is sold, the listing broker splits the listing fee with the buyer's agent. Thus, buyers don't pay their agents. 

Most loan programs require a FICO score of 620 or better. Borrowers with higher credit scores represent less risk to the lender, often resulting in a lower the down payment requirement and better interest rate. Conversely, home shoppers with lower credit scores may need to bring more money to the table (or accept a higher interest rate) to offset the lender’s risk.

While the broad down payment average is 11%, first time homebuyers usually only put down 3 to 5% on a home. That’s because several first-time home buyer programs don’t require big down payments. A longtime favorite, the FHA loan, requires 3.5% down. What’s more, some programs allow down payment contributions from family members in the form of a gift.

If the built-up equity in your current home will be applied to the down payment on the new home, naturally the former will need to be sold first. Some home buyers decide to turn their current home into an investment property, renting it out. In that case, the current home will not need to be sold. 

That is up to you! Home shopping today is easier today than ever before. The ability to search for homes online and see pictures, even before setting a foot outside the comfort of your living room has completely changed the home-buying game. Convenience is at an all-time high. However, nothing beats visiting a home to see how it looks and 'feels' in person.

Yes! Home inspections are required if you plan on financing your home with an FHA or VA loan. For other mortgage programs, inspections are not required. However, home inspections are highly recommended because they can reveal defects in the home that are not easily detected.