FAQ
Frequently Asked Questions
Am I Ready to Be a Homeowner?
Financial stability is one of the most important contributing factors to successful homeownership. Buying a home is one of the biggest financial decisions you’ll make. You need a steady source of income that can easily cover your mortgage payment. Experts recommend that your home cost no more than 20 to 30% of your monthly income.
Is Renting or Buying Better?
Buying a home can be a very solid investment. That being said, renting can also a viable option for some depending on the circumstances. The current a 30-year FHA mortgage can be locked in at a rate of around 3.5%. Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent.
Before deciding to buy a home decide the length of time you plan on staying in a home, if you were to purchase. If the answer is only a few years, it’s likely the better decision is to continue renting.
What Is the Lender's Formula?
Your debt-to-income ratio is all your monthly debt payments divided by your gross monthly income. This number is one way lenders measure your ability to manage the monthly payments to repay the money you plan to borrow.
What Do I Look for in Homes?
Today’s buyers are juggling many different priorities when it comes to buying a home, but according to the Zillow Group Consumer Housing Trends Report 2019, the following features rank as very important most buyers:
- Safety
- Location
- Condition of property
Should I speak with a lender prior to looking for a home?
Yes! You need to speak with a lender to be pre-approved prior to beginning your home search. They will help you understand exactly how much you can afford.
What Is Pre-approval?
A pre-approval is a preliminary evaluation of a potential borrower by a lender to determine whether they can be given a pre-qualification offer. Pre-approvals are generated through relationships with credit bureaus which facilitate pre-approval analysis through soft inquiries.
What is the closing process?
After buyers and sellers agree on a home’s price, the closing process begins. It typically lasts between 30-60 days. During this time, the purchase contract is drawn up and signed, financial documents are finalized, home inspections and appraisals are completed and various other legalities are handled. On closing day, both buying and selling parties meet to sign final documents and hand over the keys!
Do I Need a Home Warranty?
Like all warranties, a home warranty is supposed to protect against expensive, unforeseen repair bills and provide peace of mind. For a homeowner who doesn’t have an emergency fund or wants to reserve it for other things, a home warranty can act as a buffer. Home warranties also make sense for people who aren’t handy or don’t want to worry about tracking down a contractor when they have a problem. Warranties can also make sense for people with expensive tastes in appliances.
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