Buying a new home or condo for the first-time can be exciting and confusing for some. There are a lot of steps to buying a condo or a home, and individuals can have many questions pertaining to the homebuying process. These are the most common questions home buyers have, and the answers.
- How do I get started? – The first step is to speak with a mortgage lender and get a pre-approval. This will tell you, and potential sellers, how much you can afford.
- How long does it take to close on a home? – Typically, it takes about 30-45 days once contracts are signed to complete the lending, appraisal, and inspection processes.
- What does my agent do? – A local buyer’s agent will negotiate terms and assist with the closing process from start to finish.
- How much do I pay for a buyer’s agent? – The sellers real estate brokerage will pay the buyer’s real estate brokerage commission from the seller final proceeds.
- What credit score do I need to qualify? – It depends on the mortgage loan program. The recommended FICO score is 620 or higher. Talk to a lender for other options for lower scores.
- How much money do I need for a down payment? – It varies. FHA
loans start as low as 3.5% and most lenders offer standard programs for a
5% down payment. Active military and/or veterans can utilize a VA Loan with 0% down payment.
- What other fees will I need to pay? – Closing costs and loan origination fees will add another 2-4% to the costs.
- What if I change my mind? – Your real estate agent will work with you to build in contingencies for condition, loan terms/approval, and other protections to allow you time to evaluate the home during escrow.
- When do I get the keys? – Unless you’ve negotiated extra time for the sellers to move, you’ll get the keys upon a successful closing.
- What’s the best advice for home buyers? – Trust the real estate experts and ask lots of questions.
Buying a new condo or a home is exciting. Reduce any anxiety by finding a local buyer’s agent who can help you assist with making the best choice for your needs.
Shannon Lindstrom, Realtor®, AHWD, CRS, GREEN, MRP
7373 Kirkwood Court No, Ste. 300
Maple Grove, MN 55369
Minneapolis Area Association of Realtors – 2019 Exceptional Service Award Recipient