Top 7 Home Buyer Questions Answered!

Posted by on Thursday, February 16th, 2017 at 8:47pm.


Buying a home can be an overwhelming thought—especially for first time buyers. We’ve compiled a list of our most frequently asked buyer questions to help you get started on the home search! 

Q. What is the first step in the home buying process?

The first step in buying a home is to get pre-approved for a mortgage loan. The pre-approval process includes talking with a mortgage broker and providing them with information like pay stubs, bank statements, credit report, etc. to help them determine exactly home much of a home you can afford. This is important to do BEFORE you start the home search. If you start looking at homes but can’t get approved for a loan, it’s a waste of both yours and your realtor’s time. Not to mention, if you are approved for a loan but you’ve already fallen in love with a house that’s outside your budget, it can be pretty heartbreaking. So, be sure to come into the home buying process with pre-approval letter in hand.

Q: How many homes should I see before making an offer?

Totally up to you. Sometimes it only takes one showing, other times you may look at 10 homes before you find the right one for you. The best plan is to know what you are looking for before you look. Tell your realtor exactly what you’re looking for, and they will create a list of homes for you that match your needs.

Q: How much money will I have to come up with to buy a home?

This depends on a multitude of factors including the cost of the home, the type of mortgage you get and the amount of earnest money the seller would like you to put up front as a deposit to let them know you are serious. The amount of your earnest money varies, but is usually between $500 and $2,000. If the offer is accepted, your earnest money will be applied to the down payment or closing costs. If your offer is not accepted, your money will be returned to you.

Depending on the cost of the home and your type of loan, you will likely have to have 3.5 to 5 percent of the purchase price as a down payment. It’s better to pay as much as you can down, so you have a lower mortgage payment. You may also need to bring money to the table to cover closing costs—averaging at about 3 percent of the purchase price of the home—which are the costs associated with processing the paperwork to buy a house. 

Q: Can I buy a home and sell my current one at the same time?

You can. The best way to make this work is to instate a “sale contingency” in your contract. This means you only agree to buy a home if you can sell the one you’re in. The only downside is if you’re in a multiple offer situation. The seller is not likely to choose a contingent offer over one that can close without a problem. 

Q: How quickly can I close?

The average escrow period is about 30-45 days. 

Q: Should I get a home inspection?

Absolutely. The home inspection is a small cost that can save you big in the future. The home inspector will look at the condition of the roof, electricity, heating and air, plumbing, etc., and if there is a problem you can negotiate with the seller to have those things fixed. If they are unwilling to fix big ticket issues, then you still have time to back out of the contract. See below for more on that. 

Q: When can I back out if I change my mind?

There is plenty of time to back out if need be, but if you don’t have a good reason, you will likely lose your earnest money. Most realtors include contingencies in the contract to cover unforeseen circumstances that are out of your control. For example, in the event that there is an issue in the home inspection or if the home does not appraise for what you are buying it for, you can back out and get your earnest money back. 

 


Are you looking to buy a home? Let us help! Check out our featured listings below. 

All Property Types in All Cities

7 Properties Found. Page 1 of 2.
Photo of Listing #1386879

4909 Shoreline Drive, Chattanooga

$749,900 - 4 Beds, 4 Baths, 4,305 Sf

MLS® # 1386879

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Photo of Listing #1386094

170 Yellowstone Way, Chattanooga

$614,900 - 4 Beds, 3 Baths, 2,707 Sf

MLS® # 1386094

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Photo of Listing #1388819

3910 Bentwood Cove Drive, Apison

$595,000 - 4 Beds, 4 Baths, 3,487 Sf

MLS® # 1388819

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Photo of Listing #1388828

6200 Jacq Court, Hixson

$392,000 - 2 Beds, 2 Baths, 1,757 Sf

MLS® # 1388828

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Photo of Listing #1387644

1216 King Arthur Rd, Chattanooga

$364,900 - 3 Beds, 2 Baths, 2,500 Sf

MLS® # 1387644

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Photo of Listing #1383660

5032 Red Clay Rd, Cohutta

$334,900 - 3 Beds, 2 Baths, 1,800 Sf

MLS® # 1383660

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