FAQ
Frequently Asked Questions
Am I Ready to Be a Homeowner?
“Being ready to become a homeowner depends on several factors, including your financial stability, credit health, and readiness to take on the responsibilities of homeownership. If you’ve been saving for a down payment, have a steady income, and are prepared to manage maintenance and other costs, you might be ready to take the next step. Consulting with a real estate agent and lender can help you assess your readiness and guide you through the process.”
Is Renting or Buying Better?
“Deciding whether to rent or buy depends on your financial situation, lifestyle, and long-term goals. Renting offers flexibility and lower upfront costs, while buying can build equity and provide stability. Consider factors like how long you plan to stay in one place, your savings for a down payment, and your ability to handle maintenance costs before making your decision.”
What Is the Lender's Formula?
“The lender’s formula is a method used by mortgage lenders to determine how much you can afford to borrow for a home. Typically, they look at your debt-to-income ratio (DTI), which compares your monthly debt payments to your gross monthly income. Most lenders prefer your total DTI, including the mortgage, to be below 43%, though some may accept higher ratios based on other factors like credit score and financial stability.”
What Do I Look for in Homes?
“When looking for a home, focus on key factors that align with your needs and lifestyle, such as location, size, layout, and future resale value. Consider the neighborhood, proximity to work or schools, and amenities like parks or shops. It’s also important to assess the condition of the home, including the roof, foundation, and major systems like plumbing and HVAC, to avoid unexpected repairs.”
Do I Need a Home Warranty?
“A home warranty isn’t required, but it can be a valuable investment for peace of mind. It covers repair or replacement costs for major systems and appliances that may break down due to normal wear and tear. If you’re buying an older home or want protection from unexpected expenses, a home warranty could be worth considering.”
What Should I Expect at Closing?
“At closing, you’ll review and sign all the necessary documents to finalize the purchase of your home. This includes the loan agreement, title paperwork, and closing disclosure. You’ll also pay closing costs, which can include fees for the loan, title insurance, and other services. Once everything is signed and payments are made, you’ll receive the keys to your new home!”
What Is Pre-approval?
“Preapproval is a lender’s estimate of how much you can borrow for a home based on your financial information, such as income, credit score, and debt. It shows sellers you’re a serious buyer and gives you a clear idea of your budget. Getting preapproved before house hunting can streamline the process and make your offer more competitive.”
What should I offer?
“When deciding what to offer on a home, consider factors like the asking price, recent sales of similar properties in the area, and the home’s condition. Work with your real estate agent to evaluate the market—whether it’s competitive or more flexible—and determine an offer that reflects both the property’s value and your budget. Be prepared to negotiate if needed!”
Can I ask for advice?
“Absolutely! Asking for advice is a smart step in your home-buying or renting journey. A real estate agent can provide expert guidance tailored to your needs, whether it’s understanding the market, negotiating offers, or navigating the closing process. Don’t hesitate to reach out—support and expertise are here to help you make confident decisions!”