Home Buying FAQ
You decided to buy a home! YAY! But now what? There is a ton of wrong information and misconceptions floating around out there. I recommend starting with this guide I put together and then I’d read the mortgage one! Whether you are ready to sign a contract tomorrow or just beginning to think about buying, I am here to help you out!
The number one question I get is, “How much do I need saved up to purchase a home?” While I can’t give you a definite answer (the lender is the one to let you know that answer!) I can tell you that for the typical first time homebuyer in DFW, we recommend to have around $15,000 saved up.
3% (minimum) for the down payment
2% (rough estimate) for closing costs
Also keep in mind you don’t want to get into your home and be cash poor. You’re going to want to decorate, get new furniture, landscaping… anything! I want you to be excited and happy, not stressed out and miserable.
The Search…
What should I do when I see a house online that I like?
Call your buyer’s agent: the agent you are working with to find your home. It’s best that you work with one real estate agent throughout your search because that person learns what you like and dislike and will invest a lot of time vetting properties for you. That person also represents your best interests only. When you call the agent advertising the home, yo are dealing with the seller’s agent, so, while they can assist you, they are ultimately trying to get the best price for their seller.
Can you show me a house if it’s not your listing?
Absolutely! As a buyer’s agent, I can show you any house listed in our MLS system, and I will contact FSBO’s (for sale by owners) on your behalf. As mentioned above, working with me as your buyer’s agent ensures that your interests are protected.
How do we write an offer?
When you find the property you want to make an offer on, I will run a Comparative Market Analysis (CMA) to help you determine a fair offer amount. I will also guide you through the additional terms of the contract, such as the escrow amount, closing date, and any additional terms you want to be added to the offer. I will write the offer on a contract form and submit it to the seller’s agent.
What if I want to back out of a contract?
You always have the right to back out of the purchase, but you may lose your escrow deposit. If the contract is contingent on a property inspection, you usually have the right to cancel for any reason during the inspection period. Once the inspection period has passed, you cannot back out and keep your deposit unless the seller agrees, or an additional term has been met.
What happens if there are other offers on the house I love?
If a seller receives multiple offers on their home, usually their agent will inform the buyer’s that multiple offers have been received and the buyer’s have the opportunity to alter their original offer to present their “highest and best” offer. Keep in mind many factors may influence the seller in addition to the offer price, such as the down payment amount, closing date, inspection terms, etc.
What happens when my offer gets accepted?
Once both parties have agreed on all terms and signed the contract, your escrow deposit must be made and you should schedule the home inspection. Your lender will receive a copy of the contract and will begin processing your mortgage application.
Have any more questions? Please reach out to me directly either by phone or email!