Common Questions
How much do I have to pay an agent to help me buy a house?
Home buyers pay little to no fees to an agent to buy a home.
Explanation:
For most home sales, there are two real estate agents involved in the deal: one that represents the seller and another who represents the buyer.
Listing brokers represent sellers and charge a fee to represent them and market the property. Marketing often includes advertising expenses such as professional photography, stagers, print ads, internet ads, and flyers. The property will also be placed in the local multiple listing service (MLS), where other agents in the area (and nationally) will be able to search and find the home for sale.
Agents who represent buyers ("buyer’s agents") are compensated by the listing broker. When the home is sold, the listing broker splits the listing fee with the buyer’s agent. Thus, buyers don’t usually directly pay their agents.
(Side note: some brokerages charge transaction fees that are either paid by the buyer or the agent).
What's the first step of the home buying process?
Getting pre-approved for a mortgage is the first step of the home buying process.
Explanation:
First, you need to know how much you can borrow. Knowing how much home you can afford narrows down online home searching to suitable properties, thus no time is wasted considering homes that are not within your budget. (Pre-approvals also help prevent disappointment caused by falling in love unaffordable homes.)
Second, the loan estimate from your lender will show how much money is required for the down payment and closing costs. You may need more time to save up money, liquidate other assets or seek mortgage gift funds from family. In any case, you will have a clear picture of what is financially required.
Finally, being pre-approved for a mortgage demonstrates that you are a serious buyer to both your real estate agent and the person selling their home.
What credit score do I need to buy a home?
Most loan programs require a FICO score of 620 or better.
Explanation:
Higher credit scores represent less risk to the lender, which can result in a lower down payment requirement or possibly a better interest rate. Home buyers 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. You May be able to have a lower FICO credit score and still obtain an FHA loan however, the minimum down payment you’re able to make on an FHA loan is directly linked to your credit score.
How do I prepare my home before I sell it?
Declutter your home and make easy cosmetic touchups.
Explanation:
Buyers want to see a clean home be able to envision themselves living in the home. Buyers are looking for homes with lots of potential and few repairs. Before you sell, consider giving your entire house a good deep clean. Often times sellers hire an inspector if there are certain items they are concerned about.