FAQs

For Buyers

What is the first step in buying a home?

The absolute first step is to get approved for a mortgage. Without being approved for a mortgage it will be quite difficult, if not impossible, to purchase a new home. If you need guidance to a reputable mortgage corporation and advisor that you can trust, we can help! Contact our office to find out how.

Should I sell my current property before buying a new one?

This is a tricky question, and the answer primarily depends on one’s funds and ability to find temporary housing. If you need more equity to purchase a new home or meet a mortgage plan, then it is best to sell one’s current home before purchasing their next one. That being said, you will most likely need temporary housing at a friend or relatives, or by arranging a short-term rental elsewhere

How does earnest money work?

Earnest money is similar to a deposit when renting a place. It is made in good faith to demonstrate to the seller that the buyer’s offer is legitimate. As a real estate agent, we ask clients for the earnest money as a deposit in the form of a check or cash. The amount is usually 1-2% of the selling price and essentially takes the property off the market. The money also gives the buyer extra time to conduct a title search, get an inspection and property appraisal, and financing.

What happens if I decide to back out of buying a house?

If you get cold feet about a property that is okay. Sometimes, you might have second thoughts or want to go in a different direction. Know that you will have to forfeit the earnest money, which again, is around 1–2% of the home’s sale price.

What is a mortgage and how does it work?

A mortgage is a type of loan to finance a property. The majority of people are not wealthy enough to purchase a house in total. Thus, a mortgage serves as a secure loan that comes with a fixed interest rate and gets paid off over 15 or 30 years. If need be, you can refinance your mortgage and payments in the future.