Answer: The Mortgage Pre-Approval 

You will need to get a mortgage unless you pay cash for a house. To know how much home you can afford, you need to get pre-approved for a loan. This is the first step in the home-buying process.

Answer: Around 30 to 45 days

The timeline for finding a house varies greatly from person to person. However, once you find a home and have an accepted offer, it usually takes around 30 days to close.

Answer: Almost Everything

A Realtor is a highly-valued asset when buying a home. They will walk you through every part of the home-buying process. They will educate and inform you of all your options. They will represent you throughout the transaction and beyond.

Check out our article, “Main Benefits of Working with a Realtor”

There is a difference between a Realtor and a real estate agent; many people do not know this. The National Association of REALTORS® regulates a Realtor and subscribes to a strict Code of Ethics. A real estate agent does not. Therefore, it is recommended that you work with a licensed Realtor to get the best service.

Answer: Depending on what is in your Buyer Rep. Agreement

In most cases, you do not have to pay your Realtor anything to help you purchase a home. Instead, the sellers typically pay their Realtor a fee, and then that listing agent pays the buyer's Realtor for bringing the buyer and facilitating the transaction. But with te new changes 

Answer: Trust the Professional & Understand Your Finances 

Beware of advice from people who do not work in the industry. Real estate is a popular topic, and almost everyone feels they have great insight to offer.

In reality, the people who know best are the people who work in the business. Good Realtors have sold hundreds (maybe thousands) of properties. They know what to expect and what pitfalls to avoid.

Friends and relatives have only bought and sold a few homes. Buying and selling a couple of houses does not make someone a well-rounded source of information. First-time buyers may become persuaded by well-meaning friends and family, only to be disappointed later. Be confident in your decisions and trust the professionals.

Answer: Usually 620+

A 620 credit score or higher is recommended. This score will be compared with your debt-to-income ratio. As you probably know, a higher credit score offers better lending terms. However, this is an ever-evolving topic as loan requirements are constantly changing.

Some lenders will approve buyers with a 580 score, sometimes even lower. Again, your loan officer will be the best source to give you a current answer for today’s lending requirements.

Answer: It depends on your loan type - usually 3% to 5% down 

The most common answer is 3% to 5% of the purchase price. FHA loans dropped their requirement from 3.5% to 3.0%. Some conventional loans require a 3% down payment. Veterans are eligible for a VA loan, which requires no money down.

Properties in rural areas may be eligible for a USDA loan, which also requires no money down. A good loan officer will walk you through all of these options.

Answer: Mainly loan origination and closing costs

The downpayment is usually the most significant cost associated with buying a house. Lending fees are the second-largest cost to homebuyers. Most lenders will charge between 2% and 4% of the loan amount for loan origination fees, depending on the loan type.

Conventional loans usually have lower loan origination fees but require more money down. Adjustable rate mortgages are less common. Your loan officer will be able to help you determine how much you can expect to pay toward loan origination and closing costs. Ask them about private mortgage insurance to learn how to avoid that fee.

Interest rates are a large deciding factor in your monthly payment amount. In addition, they have a long-term effect on your overall loan payoff amount.

One unpredictable homeowner fee is maintaining everything in and around the home. For example, water heaters break, HVAC needs servicing, and appliances break down. Over time, these items will need to be replaced or repaired.

For a detailed list of all potential home buying fees, see our article titled “How To Avoid Sticker Shock at the Closing Table?”

Your mortgage lender may forget that you’ll need $300 to $500 to hire a home inspector to perform a home inspection. So be sure to budget that money.

Answer: At Closing (All parties have signed closing documents & funded) 

Under normal circumstances, you will get the keys at the closing. Closing typically takes an hour. Sometimes, the lender will need time to fund the loan, and you must pick up the keys after the loan has been funded. For example, if you have a Friday evening closing and the loan cannot be funded until Monday, you may not get the keys until Monday.

Make sure to coordinate your closing to get the keys on the same day if that is what you need. Once you get the keys, make your monthly mortgage payment on time.