FAQs for First Time Home Buyers

Are you looking to purchase your “first” home and find yourself nervous about the home buying process?  Not sure exactly what steps to take? And want to ensure you take the right steps for you and your family? Our team specializes in working with First Time Home Buyers and we are here to literally grab you by the hand and walk with you every step of the way throughout the home buying process.

Its normal to feel nervous about the purchase of your “first” home, everyone does! After all, buying a new home is one of the largest investment you will make in a lifetime. To ease some of your concerns, we have listed some of the questions frequently asked by our clients. To support your further, we invite you to schedule your FREE Home Buyers consultation specifically designed for first time buyers. This presentation will surely put your mind at ease as we inform you of the critical steps when buying your first home. During your consultation you can expect the following:

• Free credit report along with an analysis of how you can increase your score (if needed)
• Review your qualification for down payment and closing cost assistance programs.
• Provide an extensive overview of the home buying process so you will know what’s involved and what to expect. We want there to be no surprises!
• A personalized action plan to identify step by step what you will need to do as you move forward.
• A free copy of our e-book, “Charleston’s Best Home Team Home Buying Tool Kit.”

Unlike what happens with some lenders, a borrower who isn’t quite credit ready is not turned away. Instead, we provide support to borrowers via a designated credit consultant and will offer constructive improvement guidance until the goal of homeownership is achieved.

So take a moment to read some of the frequently asked questions below and when you are done, give us a call to schedule your FREE Home buyers Consultation. We look forward to hearing from YOU!

Q:  What are the benefits of Home Ownership?
A:  Owning a home has many benefits.  When you make a mortgage payment, you are building equity. And that’s  an investment.  Owning a home also qualifies you for tax breaks that assist you in dealing with your new financial responsibilities–like insurance, real estate taxes, and upkeep.

Q:  How do I begin the process of buying a home?
A:  Start by thinking about your situation.  Are you ready to buy a home?  How much can you afford in a monthly mortgage payment?  How much space do you need?  What areas of town do you like?  Your home should fit the way you live, with enough space and features that appeal to the whole family.

Q:  How is my Realtor compensated?
A:  As your Realtor, we are compensated by commission, based on a home selling price.  It is important for you to understand that as your buyer’s representative, it is customary in most transactions, that you do not pay a fee to us to work for you.  We usually receive compensation through the listing side (seller) of the transaction.

Q:  What steps must I take to secure a loan?
A:  The first step in securing a loan is to complete a loan application.  To do so, you’ll need the following:
– Pay stubs for the past 2-3 months
– W-2 forms and/or 1099’s for the past 2 years
– Most recent award letter for social security, disability, or retirement income
– Last 2 months bank statements (must include all pages of statement)
– Copy of driver’s license and social security card
– Last retirement account statement received
– State Housing loans require last year’s tax returns all schedules
– If applicable, copy of divorce decree, child support, alimony or bankruptcy paperwork
– If self-employed, last 2 years tax returns and a year to date profit and loss
– Tax returns for the past 2 years

Q:  What happens after I have applied for my loan?
A:  When applying for your loan, it takes most lenders 24-48hrs to let you know the outcome of your application.  It usually takes a lender between 1-6 weeks to complete the entire process and get the final approval to close on your home.  Therefore, the lender may ask for more information once the application has been submitted.  If the loan is approved, a closing date is set up and the lender will review the closing information with you.  Do be aware that you credit is subject to be checked at any time up until the time you close on your new home. So be sure to stay within good credit standing during this time frame.  This is not the time to open new accounts, secure new credit cards, or increase your debt in any way.

Q: How are pre-qualifying and pre-approval different?
A:  Pre-qualification is an informal determination by a lender or mortgage broker stating how much mortgage you can afford.  A pre-approval is a guarantee in writing by a lender to grant you a loan up to a specified amount. A pre-approval is what you need to place you in a strong negotiating position.

Q: What is earnest Money?  How much do I need?
A:  Earnest money is money put down to demonstrate good faith when buying a home. If your offer is accepted, the earnest money can be used to assist with closing cost or may be returned to you at the closing table, if not used towards the transaction. If your offer is rejected, your earnest money is returned to you.  We will help you determine a reasonable amount of earnest money to submit with your offer; It will depend upon the purchase price of the home as well as the policies set within a new community. But, we expect a minimum amount of $1,000.00.

Q:  What are closing costs?
A:  Fees and expenses, over and above the price of the property incurred by the buyer and/or the seller in the property ownership transfer.  Examples are title searches, lawyer’s fees, survey charges, and deed filing, appraisal fee, etc.

Q:  What can I expect to happen on closing day?
A:  The closing attorney will review all documentation with you to include the settlement statement.  Once you review and understand all the documentation, you’ll sign the mortgage, mortgage note, and lots of other documentation. Once all parties have signed the closing documents, you will be given the keys to your new home! You will be given you the title to your new home in the form of a deed. The deed and mortgage will be recorded in the state Registry of Deeds.

For Additional Questions or to Schedule your FREE Homebuyers Consultation
Contact Us Today at (888) 992-7423 or complete the form below: