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.
In every real estate transaction one of the most important steps is to get a home inspection. Whether you chose a professional or do it yourself, always get a home inspection. I know I’ve told you this before, but I truly believe it is one of the most important things you can do for yourself and your family. Imagine buying a house and 2 days after closing you discover the pipes leak in the basement every time you flush the toilet; or 2 weeks after closing you have to replace the hot water heater because its 30 years old and was at the end of its life span and stopped working.Both of the examples are items that likely would have been found through a home inspection. Now this is not to say that issues can’t still arise after closing even if you do have an inspection. The hope is that through a home inspection you will be able to have more in depth knowledge of your home and be able to prepare and plan for future maintenance items and potentially get major items repaired before closing.