Buying vs Renting?
The most common argument that FAVORS buying a home is that homeowners build equity. What does that mean? This asset (home) will build your long term net worth, especially in California. In contrast with renting, your essentially doing the same for someone else, the landlord. Start building equity NOW.
Am I ready to buy?
There are a few questions you have to ask yourself before entertaining the thought of buying your first home. How are your finances? Do you have any debt? Do you have any credit blemishes? What mortgage are you most comfortable with? Do you have enough money for home repairs and maintenance? How much money do you have saved up for down payment? Lastly, if you are on our site you know the answer to this one, do you know a reputable agent with a track record that will hold my hand through the process? That would be US.
What’s the first step of the home buying process?
Before you start looking for a home, you will need to know how much you can actually spend. The best way to do that is to get prequalified for a mortgage. To get prequalified, you just need to provide some financial information to your mortgage banker, such as your income and the amount of savings and investments you have. Your lender will review this information and tell you how much they can lend you. This will tell you the price range of the homes you should be looking at.
How much do I need as a down payment?
Down payment varies from case to case scenarios. The average down payment on a house varies depending on the type of buyer, location and home prices in a given area. For example, first-time buyers typically put less money down than repeat buyers, who can use the proceeds from a home sale to make the down payment on their next home. That is why meeting with a mortgage lender and discussing all options that best suit you is very important.
Does my credit score impact my ability to buy? What should my credit score be?
Your credit score, as well as the information on your credit report, are key ingredients in determining whether you’ll be able to get a mortgage, and the rate you’ll pay.
How long does it take to buy a home?
On average a home buyer will spend 30-60 days shopping and 30-60 days from opening escrow to closing.
How much do I have to pay the Realtor?
If you are the buyer, then you do not pay the Realtor. The Seller’s Agent typically splits the commission 5%-6% with the Buyer’s Agent.
When do I get my keys?
Once you have signed final loan documents, then comes the day of funding.
The day of funding is usually the “get the keys” day however, in some instances, buyer is to take possession 3 days after closing.