14 Top Questions Home Buyers Ask

You probably have quite a few questions about buying a home around the Houston metroplex. You’re in the right place to find answers. Buying a home is one of the major purchases you will make in your lifetime. It’s necessary to have the information you need to make an informed decision and feel great about your decision. If you have a question that hasn’t been answered here, don’t hesitate to reach out to me. It’s my pleasure to help you get the answers you need plus be your guide when shopping for a home.

Q1. What’s the first step I should be doing when I’ve decided I want to buy a house?

Get a mortgage pre-approval. Unless you will be making the purchase with all cash, it will be necessary to secure a mortgage from a lender. Getting approved for financing before beginning your home searches helps you know how much home you can afford. Once you know how much financing you are able to secure your REALTOR? will show you homes in this range. Pre-approval also let’s sellers know you’re a serious buyer who is ready to make a deal and find a home.

Q2. As the buyer, how much will I have to pay the REALTOR??

Generally, zero. It is common practice for the seller to pay the commission to the seller’s agent and the seller’s agent pays the fee to the buyer’s agent for bringing the buyer to the transaction.

Q3. How long does it take to purchase a home?

Once the seller accepts the offer, a general timeline to close is around 30 days though these time periods can vary.

Q4. What does a seller’s market mean?

The seller’s market is described as when the increase in home inventory drives up the prices of homes. In general, there are four factors that may drive demand: 1) economic factors which brings new residents to an area in need of housing—pushing prices up before inventory can be built, 2) downward trending interest rates which improves affordability—especially among first-time buyers, 3) a short-term spike in interest rates can be the nudge for buyers on the fence about whether to buy now or wait, and 4) fewer homes on the market—the lower inventory because of lack of new construction means prices on existing homes may go up.

Q5. What does a buyer’s market mean?

The buyer’s market is described as reduced demand and declining home prices. In general, there are five factors impacting this type of demand: 1) an economic disruption such as a large employer shut-down or layoff causing people to leave the area following new job opportunities, 2) higher trending interest rates—this reduces the amount of money people hope to borrow to be lower and home prices typically drop to match the level of demand, allowing buyers to find better deals, 3) short-term decrease in interest rates can give borrowers a slight edge in their purchasing power until the interest rates change, 4) increased home inventory such as a new subdivision will put downward pressure on the rates of nearby older homes, and 5) natural disasters can negatively influence property values in the neighborhoods where the disruptions occurred.?

Q6. Is it better to sell my current home before buying a new home?

This is a question best posed to your financial advisor who will aid you in running the numbers for your personal situation. Your loan advisor will help you evaluate your risk profile and credit history to determine whether making a loan on a new home is feasible while retaining the title to the old home.

The answer may be in turning the current home into an investment property—renting it out. In this is case you will not be selling your old home. For others, the path towards the new home requires the needed funds from the built-up equity in the current home—the funds are used towards the down payment of the new home.

Q7. How many homes should I see before deciding on the home to buy?

There isn’t a magic number and chances are “your” home will check all the boxes for things you’re searching for plus feel like “your” home. It’s helpful during the home visits to take photos and make notes about what you like and dislike about each house. Observe which amenities are nearby. Consider if the home is close to schools, parks, shopping, and restaurants that are important to you.

Q8. How much money is needed for the down payment?

Typically, 3-5% of the house price is required by several first-time home buyer programs such as the FHA loan program. VA loans and USDA loans can be made with zero down payment. If you’re able to increase the down payment to 10-11% you will be able to avoid private mortgage insurance (PMI) as required by your lender plus save money, long-term. ??

Q9. What type of credit score is needed to apply for a mortgage loan?

Aim for a score of 620 or higher to get better lending terms. Lending requirements continue to change so plan a conversation with your loan officer for the most up-to-date information and today’s lending requirements.

Q10. How long can a seller take to respond to my offer?

This can vary between a matter of hours or sometimes within 24-48 hours. When presenting the offer, the buyer’s agent can request a timeframe in which the seller should respond, but it is really up to the seller’s discretion as to when they respond.

Q11. What happens if my offer is rejected?

When an offer is rejected, don’t get discouraged because all is not lost. Sellers may initiate a counter-offer and if this happens the deal is not dead. For a counter-offer you and your agent will review the offer to determine if it is acceptable to you. If you approve the revisions requested, then the contract can get executed and move forward. If you don’t, the next step is to make a counter-offer in reply. These can go back-and-forth several times—each revision bringing the buyer and seller closer together on the terms of the deal.

Q12. Should I order a home inspection for the new home?

Yes, always get the home inspected—new or resale! Home inspections are typically required if you plan on financing with a VA loan or FHA loan. Inspections will reveal any defects not easily seen plus provide you a sense of peace for one of largest investments you will be making in your lifetime. Once the report comes, read it. Ask the seller to act on fixing any repairs or renegotiate the selling price to accommodate these flaws.

Q13. How important is a final walk-through?

While not required, it is encouraged. Take your time during the final walk-through. If any repairs were requested following the home inspection report, follow up to make certain these were satisfactorily completed per the terms of your contract.

Q14. When can I expect to receive the keys to the new house?

Generally, your new home’s keys will be handed to you on closing day once the transaction is complete and fully funded by the title company. ?In some instances, there could be a leaseback where the seller requests to stay in the property past the closing date, but this would be known and negotiated well ahead of the closing date.

Since 2004 Sara Lyn Nguyen continues to bring a wealth of knowledge and expertise about buying and selling real estate around the Houston area to those she serves. Sara is a multi-year award winning REALTOR? and relocation specialist where her clients trust her to have up-to-date information on the real estate market. She has been one of Gary Greene’s Multi-Million Dollar Top Producers and was the #2 Top Producing agent in 2020 citywide. When it’s time to buy, sell, invest, or relocate speak with a trusted professional knowledgeable in the homes and neighborhoods of Fort Bend/Sugar Land and the surrounding region.??