Buyers FAQ?

What is the first step?

Getting pre-approved with a mortgage lender.

Where do I apply for a mortgage?

I always suggest reaching out to a realtor that can get you in contact with a few trusted, local mortgage lenders.  This is what we call shopping for a better interest rate, and using a local trusted lender will make your offer stronger to the seller and ensure you get to closing with ease.

How much do I need to put down on a home?

Great news, you do not need 20%  A downpayment can be 0% if you are using a VA or USDA loan, 3.5% if you’re using an FHA loan, and as little as 5% for some conventional loans. How much you put down depends on what type of mortgage you qualify for and what your goals are. The average down payment on a home in 2021 was 7% for first time homebuyers and 17% for repeat buyers.

How much cash do I need to buy a home?

Cash you will need to buy a home and through the transaction will be:

Earnest money deposit: typically 1% of the purchase price, cashed two days after the offer is accepted and will go towards closing costs.

Inspections: which will vary depending on each home, typically $500-1,500

Closing Costs: Typically 4% of the purchase price

Downpayment: See notes above

How long does it take to buy a home?

After your offer is accepted, typically 30-45 days.

How much does it cost me to use a realtor?

Typically your buyer agent’s commission is paid by the seller

Are there any programs that help me as a homebuyer?

Yes, a lot and they can be very unique depending on each buyer. For starters there is the Maryland Mortgage Program, Maryland SmartBuy, and many more.  Be sure to reach out to a realtor for more information.

Homebuying can seem complicated, but it doesn’t have to be.  Download my free home buying guide by entering your email below.