Buyer's Information
Frequently Asked Questions by Home Buyers
- How much does it cost to buy a home?
- How long does it take to buy a home?
- What is the best type of financing for me?
- Why do I need a Realtor when buying a home?
- Can I buy a home before I sell my current home?
- How much do I offer when I find a house?
- Do I need a home inspection?
- What is a closing, and what happens at the closing?
- What about homes that are offered for sale by owner?
- If I'm working with a Coldwell Banker Burnet Realtor, can I look at homes offered through other real estate companies?
If you have a question that is not answered here, feel free to call or e-mail Steve and Dianna. They are ready to help you!
How much does it cost to buy a home?
Typically, home buyers use 3, 5, 10 or 20% down financing when buying. Closing costs and prepaid items are also necessary and range between 1.5-2% of the loan amount. Appraisals and home inspections are not usually included. A buyer can ask a seller to help pay for some of the closing costs and prepaid items when buying a home.
Down pmt. % + Closing Costs & Prepaids (2%) + Appraisal & Inspection ($300-500) = Total Cost of Buying a Home. [Top]
How long does it take to buy a home?
With the technology available today finding a home that fits your wants and needs can be done in a matter of seconds. The average buyer will look at 5-10 homes before they decide on which to buy. Once you meet with a lender and arrange for financing, it usually takes 30-45 days before closing and moving into your new house. [Top]
What is the best type of financing for me?
Meeting with a loan officer (home financing consultant) is a great place to start when buying a home. Today there are hundreds of home financing options available and a loan officer will provide you with the information and advise to help you make a choice that works best for you. The most important factors to consider when choosing a mortgage are amount of down payment, how long you plan to live in your new home, credit history, and current interest rates. [Top]
Why do I need a Realtor when buying a home?
During your lifetime, you probably won't make a larger, more important decision than buying a home. A Realtor will provide you with the guidance and advise in addition to representing your best interests throughout the entire transaction while handling all of the details up to closing. A professional Realtor will locate and coordinate homes for you to view and explain the purchase agreement and contracts you'll be signing when you do find a home. It's not necessary to use a Realtor when buying a home, but it's hard to imagine going through the home buying process alone. [Top]
Can I buy a home before I sell my current home?
Maybe. Many homeowners are worried that they won't be able to find a new home after they sell theirs. They worry about having to make a quick decision on a new home that they are not truly exciting about. As a home buyer, they can purchase a new home contingent on them selling their current home or purchase non-contingent on the sale of their current home. Unfortunately, most people are not in the financial position where they can qualify for two mortgage payments at the same time or are not willing to take on the financial burden of owning two homes at the same time. [Top]
How much do I offer when I find a house?
What ever you feel the home is worth. The increase in the real estate technology has given Realtors the tools to provide sellers with an accurate market valuation. This has resulted in an average sale price in the Twin Cities area of 97% of asking price. Most homes sell at or around this figure. However, in multiple offer situations, buyers will pay over the asking price in order to take advantage of a great deal. It is very important that you understand the existing market conditions and know that you are not overpaying for your new home. Put together a purchase agreement that you feel comfortable with including the sale price, financing terms and a closing date that works into your time frame. [Top]
Do I need a home inspection?
A home inspection is not required when buying a home. However, it is strongly encouraged. During a home inspection, you'll learn the ins and outs of the home and any potential safety and health issues before you are locked into a purchase agreement. The average inspection takes 2-3 hours and will cost between $200-300. [Top]
What is a closing, and what happens at the closing?
The "Closing" is an industry term for the close of a real estate transaction. A seller will receive their proceeds and sign over the title to the buyer. The buyer will finalize their mortgage and receive title from the seller. A closing typically will take about an hour and, after everything is complete, the keys are handed over to the buyer and the house is theirs! [Top]
What about homes that are offered for sale by owner?
Many buyers think they'll miss out on homes offered for sale by owner (FSBO) if they are working with a Realtor. This is hardly the case. The majority of FSBOs are expecting to work with a Realtor and pay a commission. If you find a FSBO home you'd like to purchase, it is very important to have someone look out for your best interests and make sure the entire transaction is handled properly. A licensed Realtor can do this for you or you can also consult with an attorney. [Top]
If I'm working with a Coldwell Banker Burnet Realtor, can I look at homes offered through other real estate companies?
YES! A professional Realtor will provide you access to the homes offered through Regional Multiple Listing Service (RMLS). The RMLS is an online service that Realtors us to search through active homes for sale and homes that are no longer for sale. Your Realtor will locate properties that fit your search criteria and arrange for showings through the listing company. [Top]
