FAQ

While lending requirements vary over time, generally, some lenders approve buyers with a 580 score. Although, a 620 or higher is recommended.  

This is a great question! No, these are not the same. Real estate agents have a professional license to help people buy, sell, and rent real estate. They must work for a sponsoring broker or brokerage firm. Brokers are real estate agents who have completed additional training and licensing requirements. They can work independently and hire other real estate agents to work for them. A Realtor is a licensed real estate agent or broker who is a member of the National Association of Realtors (NAR). Members must comply with NAR’s strict Code of Ethics. 

The timeline for finding a house varies greatly from person to person. However, once you find a home and have an accepted offer, it usually takes around 30 days to close. 

I always recommend local lenders rather than online lenders. Choosing local means working with someone who knows your community like the back of their hand! Additionally, you’ll want to consider someone with great communication and responsiveness, which typically comes easier with local lenders. Ultimately, it is your choice, but I always advise you to explore your options! 

Yes, there are! I work with a variety of different local lenders who offer different first-time home buyer programs. First-time home buyer programs are for individuals who meet certain income requirements, who are financing property in certain census tracts, or who meet other special requirements. Certain other restrictions may apply but your lender will explain this to you. 

The due diligence period is when a prospective buyer can inspect the property and perform any additional inspections such as septic tank inspection, pool inspection, etc. The due diligence period is usually 7-10 days but can vary.  

For homeowners that put less than 20% down, PMI is an added insurance policy that protects the lender if you are unable to pay your mortgage. This is not the same as homeowners insurance. It is a monthly fee rolled into your mortgage payment that is required when you put less than 20% down. While PMI is an initial added cost, it enables you to buy now and begin building equity. Otherwise, you’d be waiting 5-10 years to build enough savings for a 20% down payment. 

Your monthly mortgage payment includes the principal, interest of the loan, property tax, and homeowner’s insurance. 

Earnest money is a good-faith deposit that buyers put down to show the seller they are serious about buying. The money is deposited after the seller has accepted the offer and is usually kept in an escrow account. On closing day, the buyer can apply the earnest money toward the purchase of the home. The amount of earnest money can vary from different markets, but your realtor can advise you on how much to offer.  

No. The terms pre-qualification and pre-approval are not interchangeable. A pre-qualification is a mortgage approval based on self-reported information and is simply an estimate. It doesn’t verify a buyer’s credit score, income, or money in the bank. A pre-approval is mortgage approval based on data compiled from credit reports, job data, and bank information. This will confirm how to approve your loan and for how much money. If you are ready to begin the homebuying process, then I recommend getting a pre-approval letter from a local lender. These are good for up to 90 days.