Hello, homebuyers! Are you looking to buy a home soon? Or you may be ready to get one right now. Perhaps you had a lot of questions, and maybe you’re too shy to ask. 

As real estate agents and experts for a long time, we always encounter all sorts of questions as people buy homes. And it’s good! If there’s one thing that you need to do right, it’s to ask as many questions as you can. Since this is a big purchase, you want to make sure you are making the best decision possible. 

However, we noticed to see patterns. So, we’ve listed the most frequently asked questions we encounter when people buy a home. We’re sure you also have these questions, so why don’t you sit back and read on?

How much cash do I need to save at closing? 

This one is a question that you should always ask. People only prepare for the downpayment, but closing costs are where surprises happen. And you don’t want that to catch you off guard. 

Closing fees typically range from 2–5 % of the buying price of a house. For perspective, that's $4,000 to $10,000 on a home costing $200,000. 

Yep, you read that right. You don’t want to be surprised by that in closing!

In addition to the down payment of 5% to 10%, you will also be responsible for paying closing charges. In this case, the total amount due at closing for a $200,000 home example we have might be anything from $14,000 to $30,000.

Can my spouse be on the deed if they're not on the mortgage?

Yes! You have to make sure you understand the difference, though. The deed and mortgage are two different things. The act proves you own a home and is responsible for living in it, and the mortgage is the document that outlines the terms of the loan.

In simple terms, the deed = ownership, and the mortgage = payments. 

So, technically, even if your spouse is not on the mortgage, they can still be included on the deed. That is if you want them to have full legal rights in your home. 

What is the seller's assistance?

When you are in the middle of the home-buying process, you’ve heard this term. 

When a seller offers to help with closing expenses, they may do so by granting a credit to the buyer. You may use this credit for various purposes, including but not limited to the down payment on a home, the first month's mortgage payment, escrow and title costs, and property taxes. This credit is what you call a seller’s assistance. 

Seller assists, also known as seller aid and concessions, are often requested by purchasers with sufficient funds for the down payment and monthly payments but lack the funds necessary to cover closing fees.

Let’s give an example. Suppose a house is listed for $300,000 on the market. A buyer may propose a price of $295,000, subject to a 3% seller assistance. To help the buyer out with closing expenses, the seller will offer them a credit of $8,850. That's a total of $286,150 in seller proceeds. 

You might think it's a loss to the seller, but it's not. It's a win-win for both the buyer and the seller, especially when the seller is struggling to make a sale. 

Final Thoughts

These are the most frequently asked questions that we always receive from our clients here at Loft Realty, and there are so much more that we love to answer. What questions do you want to ask your agents that you are afraid of? Let us know in the comments below, and we’ll answer them. 

And you know what? It’s always better to talk about these in person. Feel free to call or email us and let’s chat and get you started on your home-buying journey.