Buyer Questions & Answers
As Top Buyer agent specialist, we love educating our buyers. Below is our response to the most common questions from homebuyers.
1. How do I begin the process?
Contacting a qualified lender to get pre-approved to purchase is going to be your first step. Getting pre-approved not only helps you to know and understand your purchase power, but it also helps to have your pre-approval letter ready to submit with your offer. Most sellers will not entertain your offer without seeing your pre-approval letter or proof of funds if you are paying cash.
2. What credit score do I need to have to purchase?
At least a 620, but a 640 is ideal. Especially if your goal is to utilize a homebuyer downpayment assistance program.
3. How long does the pre-approval process take?
Not long at all. One you fill out the online application, your application will be sent to a local mortgage lender. It takes about 2 to 3 days to process. If you are preliminary approved based on credit score and assets listed on your application, the lender will request to review your financial documents to determine the exact amount you qualify for. Normally, the entire pre-approval process takes less than 10 days. It will strongly depend on how quickly you can provide lender with your financial documentation.
4. If the home I choose is less than my pre-approval amount, can I receive the remainder in cash?
No. The lender will only lend the amount of your purchase price.
5. What is the difference between a pre-approval and a pre-qualification?
A pre-qualification is when the mortgage lender has not verified your information listed on your application such as tax returns, check stubs and bank statements etc. A pre-approval is when the lender has verified this information.
6. How long does the homebuying process take?
Once you find a home, it normally takes 30-40 days to close. See 8 Most Likely Things To Happen Once You Go Under Contract.
7. How much money do I need to have saved to purchase a home?
It all depends on the type of mortgage loan you are using and whether or not you are using a downpayment assistance program. You will need at least $2500 upfront for things like your due diligence fee, earnest money deposit, appraisal, and home inspection fee. Keep in mind that some new construction homes will require a higher earnest money deposit.
For more information on the buyer services we offer or assistance with your home purchase, please call us at 980-237-8000 or fill out the form below.