Frequently Asked Questions

What is the first step to buying a home?

When you're getting ready to purchase a new home, one important step is to check your credit score. This score is a key factor that lenders use to determine whether or not they can trust you to repay a loan.

When you're ready to start shopping for a mortgage, it's a good idea to check with a few different lenders to see what kinds of loans you prequalify for. Armed with this information, you can create a budget that works for you and start looking for homes that fall within your price range.

When is the best time to buy a home?

When it comes to finding the perfect home, timing can be everything! Depending on what you're looking for, different times of the year may offer different advantages.

For example, if you're looking for the greatest variety of options, you might want to focus your search in April - which tends to be the most popular month for new listings. On the other hand, if you're hunting for a good deal, November might be the best time to start your search.

How much should I put down on a home?

If you're preparing to buy a home, it's important to understand the role that a down payment plays in the process. While a 20% down payment is often considered ideal - as it allows you to avoid paying private mortgage insurance (PMI) - the reality is that most lenders will require at least 3% to finalize the sale.

Depending on where you live and what kind of mortgage you qualify for, you may need to put down a minimum of 5% instead.

However, it's worth noting that there are some special programs available that can help certain buyers afford a home without a down payment. For instance, first-time buyers, veterans, and rural residents may be eligible for assistance that can help them achieve their dream of homeownership.

What is earnest money?

In the Central Ohio area, it's common for earnest money to fall within the range of $500-2500, rather than being based on a percentage of the home's purchase price. Essentially, this money serves as a "good-faith deposit" from a buyer who is serious about moving forward with the sale.

Once the sale is pending, the earnest money is typically placed in an escrow account, which is held by a third party until the sale is finalized. When the time comes to close on the home, the funds can then be used to cover closing costs or applied towards the down payment.

How does my agent get paid?

In most cases, the agent's commission is included in the sale price of the home and is paid at closing. The standard commission rate is typically around 6% of the sale price, which is then divided among the listing agent, listing broker, buyer agent, and buyer broker. This means that your own agent will be paid approximately 1.5% of the purchase price of the home.

Can I back out of a contract?

When you're in the process of buying a home, it's natural to have concerns about what might happen if you need to back out of the agreement. While it's true that you could potentially lose your earnest money (which is essentially a security deposit given to the seller when you sign a contract), there are other factors to consider as well.

For example, if you back out of the agreement for a reason that's not outlined in the purchase agreement, you could face legal consequences. That's why it's important to carefully review this document before you sign it, to ensure that you understand all of the important details - such as the seller's responsibilities for repairs and any contingencies that are part of the real estate deal.

How should I prepare my house before selling it?

When preparing to sell your home, one of the most important things you can do is make it as presentable as possible. This means giving the entire house a thorough cleaning and making any necessary small repairs.

Be sure to mop the floors, scrub the bathrooms, and eliminate any grime in the kitchen. Simple tasks like patching holes in the walls, replacing burned-out lightbulbs, and repairing broken appliances can also make a big difference in helping your home stand out in a competitive market.

Another helpful tip is to consider repainting the walls in a neutral color. Shades like white, cream, and gray can make rooms appear larger and help potential buyers envision themselves living in the space.

If you're planning to stay in your home while it's on the market, it's also important to depersonalize and declutter. Put away any family photos, knick-knacks, and other personal items that may distract from the home's features. You may even want to consider renting a storage unit to house these items until your home sells.

How long will my house take to sell?

Selling your home can be a bit of a process, and there are a few factors that can impact how long it takes to find the right buyer.

For example, homes tend to sell faster in the spring and early fall, when there tends to be more activity in the real estate market. Additionally, if your local housing market is experiencing a shortage of homes for sale, your property may sell more quickly than if there is more inventory available.

Of course, the condition of your home can also play a role in how long it takes to sell. If your home is in great condition, it may attract more interest from potential buyers and sell more quickly. On the other hand, if there are issues that need to be addressed, it may take a bit longer to find the right buyer.

If a buyer needs to take out a mortgage, this may also impact how long the sale process takes. Financing deals usually take around 42 days to close, whereas cash deals can close much more quickly.

But don't worry - there are steps you can take to help speed up the process! Simple repairs like adding new carpet or freshening up the interior with a coat of paint can make a big difference in attracting potential buyers. And if you're in a seller's market where homes are selling quickly, you may not need to make as many repairs to get your home sold.

How much will my closing costs be?

Closing costs typically add up to between 8-10% of the total sale price. This typically includes a realtor commission of 5-6%, with the remainder going towards various other costs such as a title search, title insurance, escrow fee, transfer tax, and prorated property taxes.

If you choose to help cover your buyer's closing costs, you may end up paying a bit more - typically anywhere from 2-5% of the sale price. By being aware of these costs upfront, you can plan accordingly and ensure that you're prepared for any expenses that may arise during the sale of your home.

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