Buyer FAQs

1. How much home can I afford?
Your budget depends on income, debts, credit score, down payment, and current interest rates. A lender pre-approval gives the most accurate answer.

2. Do I need to get pre-approved before house hunting?
Yes. Pre-approval shows sellers you’re serious, strengthens your offer, and helps you shop within the right price range.

3. How much money do I need for a down payment?
Down payments can range from 0%–20%+, depending on the loan type (VA, FHA, USDA, Conventional). Many buyers put less than 20%.

4. What are closing costs and how much are they?
Closing costs typically run 2%–4% of the purchase price and include lender fees, title insurance, escrow, taxes, and insurance.

5. Should I buy or rent right now?
Buying makes sense if you plan to stay put for several years and want long-term equity and stability. Renting offers flexibility but no ownership benefits.

6. How long does the buying process take?
From offer to closing, most transactions take 30–45 days, depending on financing, inspections, and negotiations.

7. What happens during a home inspection?
A licensed inspector checks the home’s structure, roof, plumbing, electrical, HVAC, and more. You can negotiate repairs or credits based on findings.

8. Can I back out after making an offer?
Yes—during contingency periods (inspection, financing, appraisal). After contingencies are removed, backing out may risk losing your earnest money.

9. What is earnest money and how much is typical?
Earnest money shows good faith and is usually 1%–3% of the purchase price. It’s applied toward your closing costs at settlement.

10. Do I really need a real estate agent to buy a home?
Yes. A buyer’s agent protects your interests, negotiates on your behalf, manages paperwork, and typically costs you nothing as a buyer.