Buyer Frequently Ask Questions
Where do I start if I want to buy a home?
Start with a Strategy Session! We’ll walk you through the steps to becoming mortgage-ready, connect you with trusted lenders, and help define your home priorities.
Do I need to be pre-approved before house hunting?
Yes! Pre-approval shows sellers you’re serious and financially ready. It also helps you shop within your budget.
How much do I need for a down payment?
It depends! While 20% is traditional, many buyers qualify with 3–5%, and there are down payment assistance programs available.
What costs should I expect at closing?
Closing costs typically range from 2–5% of the purchase price and include lender fees, title insurance, and taxes.
Do I need a buyer’s agent?
Absolutely. A buyer’s agent represents your interests, negotiates on your behalf, and guides you through contracts and contingencies.
How long does the homebuying process take?
On average, 30–60 days from contract to closing, but it depends on your financing, the property, and negotiations.
What credit score do I need to buy a home?
Most lenders look for a score of 620 or higher, but FHA loans may allow lower scores. The higher your score, the better your interest rate.
Can I buy a home with student loan debt?
Yes — lenders consider your debt-to-income (DTI) ratio, so as long as your income and credit balance out your debt, you may still qualify.
What is earnest money, and do I get it back?
Earnest money is a deposit (1–3% of the purchase price) that shows good faith. It’s applied toward your closing costs, and refundable if you cancel for a valid contingency.
What happens during a home inspection?
A licensed inspector reviews the property’s condition (roof, plumbing, electrical, foundation, etc.). You’ll receive a report that may allow you to negotiate repairs or credits.
What is an appraisal and why is it required?
The lender orders an appraisal to confirm the home’s value. If it comes in lower than the purchase price, you may need to renegotiate or bring additional funds.
Can I buy a home with little or no money down?
Yes — VA loans, USDA loans, and some state or local programs allow zero down. FHA loans start at 3.5% down.
What’s the difference between pre-qualification and pre-approval?
Pre-qualification is a quick estimate based on self-reported info. Pre-approval is a verified review of your finances, credit, and documents — and carries more weight with sellers..
What are contingencies in an offer?
These are conditions that protect you, such as financing, appraisal, and inspection. If they aren’t met, you can walk away without losing your deposit.
Do I need to sell my current home before buying a new one?
Not always — you may qualify to buy before selling, or use a contingency that allows you to purchase once your home sells.
What’s the difference between fixed-rate and adjustable-rate mortgages?
Fixed-rate mortgages keep the same interest rate for the life of the loan, while adjustable-rate mortgages (ARMs) may start lower but can change over time.