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? 

What does my credit score need to be? 

We hear this one a lot. Lenders have the last say on the minimum credit score needed to get a mortgage. However, minimum scores may vary widely depending on the loan you want to apply for.

But we can give you the general rule. If your FICO score is above 740, you don’t need to worry about it. Because this score is considered very good and exceptional, and you can quickly get a mortgage with a score like this. 

Other loans can have lower minimums but require some other conditions. For an FHA loan, you need a minimum credit score of 500, but you need to make a down payment of 10% to qualify. For USDA loans, the minimum credit score is 640, and VA loans can be as low as 620. 

How much money do I need for a down payment?

The next golden question that everyone cares about. You may have heard that 20% is the ideal amount to put down on a home when buying one. But we all know that the idea of a 20% down payment can make homeownership feel unrealistic.

The good news is that very few lenders still require 20% at closing. That said, it may still make sense to pay 20% of the home’s purchase price if possible, and it's because the higher the money down, the more you can save on interest rates. 

Also, based on the type of loan you applied for, some lenders might ease out and require you to pay a lower percentage. For instance, conventional loans only need 3-5% money down, and FHA loans can require between 3.5%-10%. 

How long does it take to close, and when can we move in?

Well, it depends on many factors, like the lender's speed and the appraiser's speed. It also differs on what type of loan you applied for. But if you buy in cash, it's faster. 

With an all-cash transaction, you may complete the closing process quickly. You only need to make a formal ownership change, send the money, and get the keys.

But, like the rest of us mortal beings, our only option is a mortgage application. And on average, for the year 2022, the average time for the entire process is between 39 and 59 days.

When should I start the house-hunting process?

Ideally, you should start looking for a new home five to six months before your current lease is up for renewal. You may use this time to look at houses and be pre-approved for a mortgage.

Is that all?

We still have a few more frequently asked questions when buying a home such as how much money should we prepare for closing costs or do "I" need to add my spouse on the deed? 

We'll get all these questions addressed, however, if you are in need, feel free to call or email us and let’s chat and get you started on your home-buying journey.