What is the Earnest Money Deposit?

Earnest Money is a type of security deposit. It’s a good faith deposit that shows that a buyer really wants to buy a house. If you have to back out for a reason within the contract, you get that money back. When the transaction closes, these funds are credited to your costs to close.

When is the best time to buy a house?

That depends on what you’re after. If you’re looking for a steal, winter is typically the best time of year. If you’re looking for a variety of options, you’re most likely to find these in Spring or Summer.

How much does a Buyer’s Agent cost me?

Quite commonly, the Agent fees are all wrapped into the agreement with the sellers! This means that the sellers usually pay the cost. 

Should I get Pre-Approved?

Yes. Whenever possible, Buyers should begin with a pre-approval from a lender. This helps show sellers that they are qualified buyers when submitting an offer. In fact, sometimes sellers require pre-approved buyers only. This also helps you as a buyer to be able to shop with more confidence. It’s important to know how much home you can afford. 

How much money do I need to buy a house?

This depends on the financing you have. There are some grant programs to help with down payment assistance as well as first time homebuyers programs. Your lender will help you determine your down payment and closing costs which equals your cost to close. 

Can I negotiate the price?

You sure can! It’s very important though to understand the market and align with your goals. In a Seller’s Market, for example, lowballing an offer or over negotiating may cause you to lose a chance at the home. Work with your Realtor to decide what is best in your market.

How long will this process take?

Once a buyer is under contract, typically it will take 30-45 days to close. This gives time for the lender to gather all items and get an appraisal on the property for you. It gives time for escrow to pull on information and prepare the deed in your name. It also gives you time to have a Whole Home Inspection and perform your due diligence. The search is the most variable part of your timeline. How long you search is heavily impacted by homes available in the market as well as a Buyer’s flexibility and ability to compromise.

How much does a buyer pay in closing costs?

A good rule of thumb to use to gauge your closing cost is 3-5% of the sales price. This includes things such as lender fees and title & escrow fees. During negotiations, there are times when a Seller might contribute to your costs (on top of their own closing costs).