Top 5 Questions for First-Time Homebuyer​

This video will assist you to explore the basic questions when purchasing a home. 

Question 1: What is the first step when buying a home?

Perhaps everyone’s intuition is to look at the house first. Maybe some other people consult the realtor about the housing market.

But in fact, the most important first step is to get the preapproval letter if the buyer plans to purchase a home with a loan.

It will be better to know what is the total amount of loan you can afford, and then you can start house hunting. If you did not get the preapproval letter, you may need to spend more time on house search and may have an issue regarding loan application after you entered Escrow. 

Question 2: What loans can I apply for?

There are many types of loans, finding a professional loan officer can help you clarify and give you suggestions. 

The following are examples of common types of loans.

1. Conventional Loan (mortgage loan):

Is the most common form of loan, offered by private lenders, usually at a fixed rate with a 3%-15% down payment. The advantage is that the interest rate is low, and the disadvantage is that there is no requirement of federal insurance.

2. Federal Housing Administration Loan, FHA Loan: this is a mortgage guaranteed by the Federal Housing Administration (FHA).

The advantages are low down payment (3.5%), low sensitivity to credit scores (above 580 points), and easy to apply. The Federal Housing Administration loan requires a mortgage insurance premium. During the entire loan period, the mortgage insurance premium cannot be canceled. If you want to suspend this insurance, you can only pay off the loan or refinance the loan.

      3.Veterans loan

It means that applicants must meet their status as veterans. 

Question 3: What documents should I prepare to apply for a loan?

Each individual loan is different, and the required conditions and information are not the same. But the most common materials are recent pay stubs, bank statements, tax returns, IDs, etc. 

You can prepare these materials and then go to the bank or visit loan officers to apply for a loan pre-approval letter, and then you will be informed about the total loan amount and interest rate.

Question 4: What are my responsibilities after submitting the Residential Purchase Agreement?

On average, the closing costs of buying a house is about 1-1.2% if it is a cash purchase. If it is a loan, the required fees will be higher. The closing cost required to buy a house will vary depending on the content or conditions of the transaction.

If it is a loan, the closing costs required will be higher.

Closing costs include title policy, escrow, notary, loan, home inspection, flood certificate, city registration, prepaid insurance and taxes, etc.

You can view the online closing cost calculator or contact me for more information.

Question 5: Can I get a better deal if I contact the Listing Agent directly?

Actually not. Listing Agents primarily represent sellers. As a buyer, you need someone who will represent you fully and negotiate only for you. Once an offer has been submitted and accepted, you will need someone to assist you in the negotiations if, during the transaction, there are issues with the property.  Additionally, the listing agent needs to present All Received Offers to the seller.

The above are the top 5 questions for the first time buyer. 

If you have any questions or demand about selling or purchasing homes, please contact me.