Frequently Asked Questions (FAQ)
Here are some FAQs about home buyer.
How do I know if I’m ready to buy a home?
Before buying a home, consider your financial stability, credit score, savings for a down payment, and long-term commitment to a location.
How much down payment do I need?
The down payment varies based on loan type—FHA loans require as little as 3.5%, conventional loans typically need 5-20%, and VA/USDA loans may offer 0% down options.
What credit score do I need to buy a home?
A credit score of 620 or higher is generally recommended for conventional loans, but FHA loans allow scores as low as 580 with a 3.5% down payment.
What are the costs of buying a home besides the down payment?
Home buyers should budget for closing costs (2-5% of the home price), home inspections, property taxes, homeowners insurance, and possible HOA fees.
What’s the difference between pre-qualification and pre-approval?
Pre-qualification is an estimate based on self-reported financials, while pre-approval requires lender verification and gives a more accurate loan amount.
Should I get pre-approved before house hunting?
Yes, getting pre-approved helps determine your budget, strengthens your offer, and shows sellers you’re a serious buyer.
What’s the difference between pre-qualification and pre-approval?
Pre-qualification is an estimate based on self-reported financials, while pre-approval requires lender verification and gives a more accurate loan amount.
What happens after my offer is accepted?
After acceptance, you’ll go through home inspection, appraisal, mortgage approval, and closing before officially getting the keys to your new home.