Frequently Asked Questions From Home Buyers

Buying a home for the first time is an exciting milestone, but it can be intimidating if you do not know what to expect along the way. Although some details of home-buying may ebb and flow, the overall process of buying remains the same. Understanding the key steps will help you reach your goals and make your dream of new homeownership a reality. Check out our answers to some of the most frequently asked questions about buying a house. 

What are the Advantages of Buying a House vs. Renting a House?

Buying a house will likely be the biggest (and most exciting) investment that you’ll make in your lifetime. Home buying means investing in your future. On the other hand, renting a house means you’re helping your landlord or property owner invest in their futures. Homeownership also comes with financial perks such as home equity, tax deductions, appreciation, and deductible expenses you cannot get when renting a house. Other perks include greater privacy and control over your living space and the ability to build credit over time with steady mortgage payments. Choosing the Right Closing Date 

Should I Use a Realtor When Buying a Home for the First Time?

When buying a home for the first time, it’s strongly recommended you have an experienced realtor working with you. Not only do professional real estate agents receive training to help home buyers, but they’re also up-to-date on market conditions, real estate procedures, and the extensive process of closing on a new home. Realtors also typically have a team of professionals at their disposal to ease your transition. These professionals include appraisers, service professionals, builders, and lenders. 

How Much Money will I Need for a Down Payment?

Saving for a down payment is typically the biggest obstacle for home buyers. The amount of money you’ll need for closing is dependent on the price of the home you select and the mortgage terms that you’ve been approved for. Lenders will expect between 5% to 20% for a down payment, with that percentage varying based on the loan details. Something to consider is that private mortgage insurance (PMI) will add to your monthly mortgage payment until you pay off the PMI.

What Happens During the House Closing Process?

After the home buyer and seller agree on a final price, the closing process begins, typically lasting between 30 and 60 days. During a closing, the purchase contract is created and signed, the home inspection and appraisal are completed, and all pertinent financial documents are finalized. A final walk-through is highly recommended to protect your new investment. The purpose of a final walk-through is to ensure that the home is in the condition in which you agreed to buy it post-inspection. If buyers choose not to do a final walk-through, they cannot hold the seller liable for damages after the property transfer. On closing day, it’s common for the buyer and seller to meet (likely for the very first time) to finalize and hand off the keys to the property.