Home Buyers Frequently Asked Questions
When buying a home, one of the most important things to understand is that “no question is a dumb question. If you are unsure of something when buying a home, just ask me!
To help answer some of your questions, I am creating this FAQ page. I will be adding more FAQ’s in the future.
Q. Should I get pre-approved before looking at homes?
A. The answer is yes. There are many reasons why you should talk with a bank and get pre-approved before looking at homes. First and foremost, talking with a lender before looking at homes can help you understand exactly how much you can afford. There is no reason to look at homes that are listed at $400,000 if you can only afford $350,000.
Now, if you’re a first time home buyer, talking with a lender before looking at homes is strongly suggested, as there may be a first time home buyer program that you qualify for. These programs can vary from state to state and county to county, so knowing exactly what’s available to you, is critical.
Another important reason to talk with a lender before looking at homes is so you understand exactly what costs are associated with buying a home. There are many home buyers who don’t understand the difference between a down payment, pre-paid items and escrows, which can be thoroughly explained by a mortgage professional. A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller’s concession.
Q. How long does it take to process a mortgage application.
A. It usually takes about 21 to 45 days for most lenders to process your mortgage application although it could take 45 to 75 days for some transactions. The actual time depends on how quickly you provide all the documentation the lender needs from you and how quickly the lender can get an appraisal of the property, a credit report and verification of employment.