FAQ for First Time Buyers | San Ramon California
Considering buying a house for the very first time? The process may seem overwhelming and you may be a little apprehensive about jumping into the real estate market but knowing the process and being educated on the current market can alleviate some of the fears and anxiety first-time buyers may have. I’ve compiled a short list of some of the most frequently asked questions the first time home buyers have.
Question: Should I have a real estate agent help me with my purchase?
Answer: Real estate agents do much more than simply list a property and posted in the local MLS. Real estate agents can assist buyers and sellers on both sides of the transaction. One of the benefits of using a buyer’s agent specifically for purchasing a home is that it cost buyers nothing for their services. Buyers agents get paid from the commission that the seller is paying. This commission will be paid out by any seller so the focus is really on the buyers and finding the right home at the right price. Although buyers agents do get paid based on a percentage of the sales price, negotiating the best price for the buyer is the ultimate goal. A few extra dollars on commission sales is not worth losing a buyer due to poor negotiating strategies.
Question: How do I know how much home I can afford?
Answer: The very first thing a first-time home buyer needs to do if they are applying for a home loan and obtaining a mortgage is to contact the lender, either online or a mortgage officer in person, and discuss their current finances. A lender will go over all of the borrower’s debts, liabilities, assets and income and determine the best price range in which their budget can afford a home. This is key to do before looking at any homes because if a buyer finds a property that they love but then later on realizes they cannot afford the home, there is disappointment, emotional heart ache, and possibly an upset seller. Get a pre-approval letter.
Question: How much does it really cost to buy a home?
Answer: Buying a home is much more complicated than simply purchasing a piece of furniture or even a vehicle. It may seem like a mountain of documents and paperwork to fill out but escrow, title, and the lenders all want to make sure that the borrower is legally able to purchase the property, the property has no other liens or title issues and that the buyer pay back the loan on the home. Depending on which type of loan you choose, closing costs can range anywhere from 1 to 3% of the purchase price and will include fees such as lender fees, appraisals, title and escrow fees, possible points for the loan, and maybe a down payment as well. Other out-of-pocket fees will be inspection costs which can range anywhere from about $300-$1000 and is paid directly to the inspector. For details on your specific home purchase it’s best to get everything in writing and an explanation to all fees and costs involved before final closing.
Question: When do I get to move in?
Answer: the logistics of final closing and signing will be determined and mapped out on the purchase and sale agreement initially. Typically final signing happens the day of or a couple days before closing and then the deed must be recorded with the County the property resides in and funds must be dispersed to all parties before the final closing. Only at this time is the buyer’s agent able to release the keys to the home.
If you have specific questions on buying a home in San Ramon California or any of the surrounding communities and towns please feel free to contact me anytime or begin your online search here for keytotheBay.com