Frequently Asked Questions
HOW MUCH MONEY WILL I NEED?
The amount of money you need to purchase a home depends on how much money you put down, and whether or not you receive any assistance in paying closing costs from the seller. Closing costs vary based on the purchase price of the home, but your Realtor or lender can give you a rough estimate of typical closing costs in your price range. Down payment requirements depend on loan type. FHA loans require as little as 3.5% down, and convention as low as 5%. However, you may qualify for down payment assistance programs, Rural Development 0% down loans, or VA 0% down loans.
WHO PAYS FOR MY REALTOR?
The seller pays for you to have an agent, and your agent only gets paid at closing. So, if your agent does not complete the job, they won’t get paid!
HOW MUCH EARNEST MONEY DO I NEED TO HAVE? WHERE DOES THIS MONEY GO?
Depending on price range, earnest money can be as little as 5% of purchase price. This will be paid in the form of a personal check written out to the attorney of the seller’s choice and held in on escrow account.
WHAT IF THE HOME DOESN’T APPRAISE FOR THE PURCHASE PRICE?
We will re-negotiate. If we cannot come to an agreement on price, we can void the contract and get the Earnest Money back. Remember though- that at this point the appraisal and any inspections would still have to be paid for out of pocket.
SHOULD I GO TO OPEN HOUSES?
Yes! It is a great chance to see what is out there… Just let the agent holding the open house know that you already have an agent that you are working with.
WHO PAYS MY CLOSING COSTS?
Technically, these are your costs. But, if you just have enough in the bank for the down payment, you can ask the seller to pay these, or you can up your interest rate to include them. Some sellers will cover closing costs, some will not- but it is common for buyers to ask for them to be covered.