Stephen Webster's Blog
There’s many different myths about buying a home that may have been presented to you as fact. All of these rumors could have you believing that being a home owner is a dream. Here, we’ll debunk some of the most common misconceptions about home buying and give you the tools to solve any issues that you may come across in the process of securing a home loan.
If You Don’t Have 20% To Put Down On A Home, You Can’t Buy
Many conventional loans do require a 20% down payment on a home. There’s also many different loans available that may suit your needs. From Federal Housing Administration loans to Veteran’s programs to down payment assistance programs, there’s many different things that can be done to help you buy a home. Keep in mind that any time you put less than 20% down, you’ll need to provide additional mortgage insurance, also known as PMI or private mortgage insurance.
If Your Credit Score Is Terrible You’re Out Of Luck
If you want really good mortgage rates, having great credit is very important. If your credit score is low, your rates tend to be much higher. A really low credit score could keep you from getting a loan completely. FHA loans allow you to still qualify for a loan with a credit score as low as 580.
You Need To Make Bank To Get Money From The Bank
Monthly annual income is just one of the factors that’s considered when it comes to getting a loan to purchase a home. Your debts matter just as much if not more. People with significant credit card debt and other loans may be denied a home loan even if they have a substantial income.
You’re In The Clear If You’re Pre-Qualified
Pre-qualification is much different than pre-approval. Pre-qualification involves giving your lender basic information about your finances in order to estimate how much of a loan you can get. This will give you a ballpark figure of about how much you’ll be able to borrow. Of course, this is very helpful in the home search process, but you’re not done. To get pre-approved, you’ll need a complete mortgage application in order to have your complete financial background check and credit rating.
If You’ve Met One Real Estate Agent, You’ve Met Them All
This couldn’t be further from the truth. Your relationship with your real estate agent is going to be quite close. You’ll need to share somewhat personal information in order to secure a house you’ll love. Agents are involved in one of the biggest decisions that you’ll ever make. Each agent has his or her specialties and knows different neighborhoods better than others. Definitely go with a real estate agent that you feel comfortable with and knows their stuff.
Closing Costs Aren’t Your Responsibility
Sometimes, sellers do pay the closing costs in the sale of a home. It all depends upon how the negotiations go with the home. You’ll need to be prepared for upfront costs in buying a home. These include a credit check, attorney fees and property insurance. As a buyer, you’ll be paying anywhere between 2 and 5 percent of the purchase price of the home.
It’s important to be prepared and to stay informed in order to make sound financial decisions throughout the process of purchasing a home. Everything will be that much more exciting when you have all of the pertinent information that you’ll need.
82 Sherbrooke Ave, Braintree, MA 02184
82 Sherbrooke Ave, Braintree, MA 02184
1776 Liberty St, Braintree, MA 02184
What should you expect after you make an offer on a residence? There are several steps that will take place between the time you submit an offer on a house to the date you finalize a purchase agreement, including:
1. Acceptance or Rejection of Your Initial Proposal
A home seller will have a short period of time to accept or reject your initial offer.
If a home seller accepts your proposal, you'll be able to move forward in the homebuying process. Conversely, if he or she rejects your offer, you may be forced to restart your home search.
On the other hand, a home seller may counter your offer as well. In this scenario, you likely will be given a set amount of time to accept or reject the counter-proposal. Or, you may be able to further negotiate with a home seller in the hopes of finding common ground.
The time between when you submit an offer on a home and receive a home seller's response to your proposal can be stressful. Fortunately, working with an experienced real estate agent ensures that you'll be able to stay up to date. This real estate professional will even help you put together a competitive offer on any home, ensuring that you can boost your chances of getting an instant "Yes" from a home seller.
2. Completion of a Home Inspection
Although a home seller has accepted your initial proposal, you'll still want to conduct a thorough home inspection to identify any major property issues.
For example, if a house has a faulty roof or defective hot water heater, an expert home inspector will be able to uncover such problems immediately. That way, you can learn about issues that may impact the long-term value of a home as part of an inspection.
If you find out about major issues with a home during a property inspection, you can rescind your initial offer and walk away from a house. Comparatively, if you still want to buy a home in spite of problems that were discover during an inspection, you can ask the home seller to complete home repairs or upgrades. You also may want to consider asking for a price reduction if major home repairs or upgrades are needed.
Ultimately, a home inspection will help you make an informed homebuying decision. After a home inspection, the ball is in your court, and you can choose to move forward with the purchase of a home, revise your initial offer or remove your proposal altogether.
3. Relocation to Your New Address
The final step of the home selling process involves closing on a home and relocating to your new address. At this point, all you'll need to do is pack up your belongings from your current location and move them to your new home.
Purchasing a home may seem impossible at times, but the homebuying process often gets easier as it progresses. Plus, homebuyers who collaborate with an experienced real estate agent can receive plenty of support as they navigate each stage of the homebuying journey.