Frequently Asked Questions

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.

Under normal market conditions, the average time to complete the sale of a home is 30 to 45 days. Though, well prepared home buyers have been known to purchase properties faster than the averages.

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.

The national average for down payments is 11%. A traditional loan will have a 20% down payment, while an FHA loan can be as low as 3% but requires private mortgage insurance.

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.

That is up to you! For sure, 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.

Written offers should stipulate the timeframe in which the seller should respond. Giving them twenty-four hours to 72 hours should be sufficient.

Yes! Home inspections are required if you plan to finance 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. Home inspections bring peace of mind to one of the biggest investments of a lifetime.

When you make an offer on a home, your agent will ask for a check to accompany it (checks are the same as cash, and the deposit is typically 1% to 2% of the purchase price).

Earnest money is made in good faith to demonstrate to the seller that the buyer’s offer is genuine. Earnest money essentially takes the home off the market to anyone else and reserves it for you.

The check (or sometimes cash) is deposited in a trust or escrow account for safekeeping. If a deal is struck, the earnest money is applied to the down payment and closing costs. If the deal falls through, the money is returned to the buyer.