The process of buying a home can be very daunting. Whether you’re a first-time buyer or not it really doesn’t get any easier since every situation is different. With that being said, there are some questions that get asked the most often by all types of buyers. Today, I’ll try my best to answer some of these questions and hopefully help you be a more prepared buyer when the time is right.
The process of buying a home can be quite complex and daunting but the process of selling a home can be just as confusing, regardless of how many homes you have sold a home. That’s because no two real estate transactions are the same, each comes with its own set of bumps in the road. That being said for many homeowners considering selling their home there are several questions that tend to come up quite often. Let’s see if we can tackle some of them and hopefully make the process slightly less confusing.
In the exciting world of real estate there are often many terms both realtors and lenders use frequently, so for us it’s pretty basic lingo. The problem is, for the average buyer/seller understanding the terms used can in itself be a conundrum(aka problem difficult to understand). In my experience, the top misunderstood terms are: closing costs,down payment, cash to close & seller’s concessions. These are the top because many times they are used together or interchangeably throughout a real estate transaction. l am going to attempt to explain these terms a little better and hopefully get rid of some of the confusion surrounding them. Ready, Set, Keep Reading!
The first question I often get is what the different loan types are and what the difference is. In Morgan County, the most common loan types are :Conventional, FHA, USDA, and VA check with your financial institution about the loan types they offer as not all offer every loan type. Now lets delve into each of these a little deeper. A Conventional Loan with Fairway requires a 620 credit score, 20% down payment and carries no mortgage insurance. An FHA loan requires a 600 credit score, 3.5% down payment, and upfront mortgage insurance of about 1.75% of the purchase price.