Commonly Asked Questions from Buyers

First-time homebuyers often have a slew of questions about the home buying process, obviously, because they may have little to no prior experience purchasing real estate. However, for some Buyers who are moving-up or downsizing, there may still be a few questions that need to be addressed since their last purchase.

Here are a few of the most commonly asked questions that I’ve received from Buyer- clients:

1. “What should I do first?”

Get pre-approved. I always suggest this as the first step because it sets a realistic expectation for one’s buying power. With a loan pre-approval, a Buyer will know 1.) if his/her credit score and credit history will qualify for a loan at that time and 2.) how much of a loan can be afforded based on income and debt and the potential interest rate 3.) and what their monthly mortgage payment and up-front costs will potentially be.

Read The Best First Steps to Take Before House-Hunting



2. “How much will I have to put down?”

This amount is going to be unique for each Buyer's situation. Typically, the out-of-pocket costs for Buyers before closing on a house may consist of money for:

• earnest money
• option fee
• inspection report
• appraisal
• home warranty 
• down-payment 
• closing costs
• paying down debt

The amount for each of these will vary, but a Buyer’s Agent will likely have references for inspection and home warranty companies and the lender will approximate the down-payment and closing costs based on the Buyer’s pre-approval.

3. “What does my credit score need to be?”

This will also vary depending on the type of loan or loan program that will best fit your circumstances. Some programs allow a minimum credit score of 580, but keep in mind that credit is only one component when getting a mortgage loan.



4. “Do I need to spend the money to get a property inspected?”

Yes. There is no question that a Buyer should get a property inspected before moving ahead with the purchase of it, otherwise, you won’t have a fuller-scope of what you’re buying.



5. “Do I need to sell my current house before putting in an offer on another house?”

While the answer to this question may depend on a Buyer’s ability to afford a new mortgage on a property while having an existing mortgage in place, the answer to this for most Buyers will be: kind of. 

While the current house may not necessarily have to be sold, it will more than likely need to be put on the market before submitting an offer on another property. This will give the Seller some comfort in knowing that the Buyer is actively trying to sell their current home and not just wasting the Seller’s time.