Frequently Asked Questions


When is it a good time to buy ?

The best time to buy a home was actually yesterday, but the next best time to buy a home is today. Homes appreciate in value, generally, over the long term and when you get a home, you can enjoy the fruits of your appreciated value through the equity you build.

Is my credit score good enough to buy a home ?

FHA: You may be able to get this loan with a 500 score, but may be required to put a 10% down payment. However, if you have 580 or higher you will only need to put down 3.5%

VA: 580-620 minimum depending on the lender, but requires no downpayment (veterans only)

Conventional: 620 minimum and will only be required to put down 3%

How much money do I need to buy a home ?

This entirely depends on how much you can qualify for, which requires the help of loan officer to look at your incomes and assets.

You’ll need enough to cover your down payment, closing costs, and earnest money deposit.

Depending on which loan you qualify for will determine the down payment. Closing costs typically run between 2% and 6% of your loan amount, and EMD is generally 1% to 2% of the purchase price

What is an earnest money deposit ?

This is the payment you make to show good faith, and that you are actually serious about buying the home. You will pay this once you get an accepted offer on a home, and this payment amount is based on the purchase price of the home.


What are closing costs ?

This is the payment made at the end when you sign paperwork and finalize the purchase. This can consist of taxes, escrow fees, insurance, appraisal, private mortgage insurance, title insurance, loan origination, and miscellaneous fees that can come up depending on the transaction

What does the home buying process look like?

First, you must get pre-approved by a lender to determine, realistically, how much you qualify for. Next, you work with your real estate agent to find homes that match your criteria, and stay within budget. Then, you put in an offer, get approved, and open escrow. After that, you can get an inspection. You’ll have to gather your paperwork to help the lender finalize your loan. Once the loan records, you have a final walkthrough, close escrow, and get your keys.

What is the Agent’s fee for buying a home ?

There actually is no fee to use a buyer’s agent. Once you actually get the home, and the keys are exchanged, the seller pays the listing agent’s brokerage a commission, and from that commission, the brokerage will pay out some of that commission to the buyer brokerage.

What is a pre-approval letter ?

A pre-approval letter is a letter given by the lender to show how much the buyer actually qualifies for after looking at their current finances. The loan amount is what the realtor looks for, and the number they’ll use when searching for a home to make sure the houses stay within their budget.