Welcome

Buying a home can be daunting…

Let’s take the guesswork out and answer some common questions.

Navigating the homebuying process can be exciting yet overwhelming. Here are some frequently asked questions and key considerations to help you on your journey:

1. Getting started

• Am I ready to own a home? Consider your financial stability, credit score, savings for a down payment and closing costs, and the ongoing commitment of home repairs and maintenance.
• What’s the first step? Get pre-approved for a mortgage to understand your budget and show sellers you’re serious.
• How long does it take? Finding a home can take time. Once an offer is accepted, closing typically takes 30-45 days. 

2. Finances

• How much house can I afford? Determine a comfortable monthly payment, considering your income, credit, and expenses. Factor in principal, interest, taxes, insurance (PITI), and potential HOA fees.
• How much do I need for a down payment? Typically 3-5% for most loans, but some programs offer no down payment (like VA or USDA loans). Less than 20% down usually means private mortgage insurance (PMI).
• What are closing costs? These are fees associated with finalizing the sale (appraisal, title insurance, loan origination fees, etc.) and are generally 2-5% of the purchase price.
• Are closing costs and down payments the same? No, they are separate expenses you pay at closing.
• What credit score do I need? A score of 620 or higher is generally recommended, though some lenders may approve lower scores. Higher scores mean better loan terms. 

3. Finding the right home

• What’s important in a neighborhood? Consider proximity to work, schools, and amenities, safety, potential growth, and the overall feel of the community.
• How many homes should I see? There’s no magic number. Visit as many as it takes to find the right fit. Homebuyers typically view around 5-15 houses.
• What should I look for when touring homes? Pay attention to structural condition, water pressure, electrical systems, functionality of doors and windows, and noise levels. 

4. Offers and negotiation

• What’s a competitive offer? As your agent, I can help determine a fair price based on comparable homes in the area (CMA).
• What are contingencies? Conditions included in your offer to protect you, like home inspection, appraisal, and financing contingencies.
• What’s earnest money? A deposit showing you’re serious about the purchase, which goes into escrow and is applied to your closing costs. 

5. Home inspection and insurance

• Why get a home inspection? To identify potential issues (roof, foundation, systems, etc.) before finalizing the purchase.
• What questions should I ask the home inspector? Ask about their background, experience, fees, inspection coverage, and findings during the inspection.
• Do I need homeowners insurance? Yes, your lender will require it. Ensure it covers potential hazards in your area (floods, earthquakes, etc.). 

6. Closing the deal

• What happens at closing? You’ll sign final documents, pay closing costs and down payment, and receive the keys (typically).
• When do I get the keys? Usually at closing, but sometimes a lender needs time to fund the loan, delaying key pickup.
• In Indiana, it is not uncommon for occupied homes to remain in the seller’s possession for 30 days after closing. In this event, they are responsible for their own utilities and the home must remain in the same condition as it was on the day of closing or the sellers face possible legal consequences.

Remember: Don’t hesitate to ask your real estate agent, loan officer, or other professionals questions at any point in the process.