Answers to some of the most common questions about buying a home
Buying a home, especially your very first home, should be one of the most rewarding experiences of your life. For alot of people it’s also nerve-racking and can even be quite stressful. Having someone who is knowledgable and experienced to walk through the process with you is invaluable.
At Domain Homes, we like to take the buyer’s stress level out of the equation as much as possible. Our purpose is to enrich our homeowners’ lives. A big part of that is sharing our experience and knowledge with a prospective buyer to ease their minds and help them know what to expect.
If you are considering buying a home, you probably have some questions – ALOT of them. That’s perfectly normal. We thought it might be helpful if we addressed some of the most common questions we get when it comes to buying a home. Feel free to comment below or send us an email and we’ll be happy to research the answer and provide you with the info you need.
In random order here are answers to the most common questions about buying a new home:
1. Why should I buy a home, instead of rent?
Renting is fine as a short-term solution. Buying a home is an investment. Many times it’s actually cheaper to buy a home than to rent a comparable one. There are also some tax benefits to owning that you should talk to your accountant about. Plus when you buy a home, it is YOUR property, and the value of your home may go up over the years.
2. How much money will I have to come up with to buy a home?
Earnest money, down payment, and closing costs are what you need to add up when buying a home. The earnest money is a deposit that you put down at the time of the offer that gets applied to your bottom line at the closing.
The down payment is the amount you put down at closing. The down payment required depends on a few factors like the loan type and length, your credit score, and your comfort level. By paying more down upfront you can lower your monthly mortgage payment. Different loan types and durations call for different down payment requirements. Some loans require 0% down while others require 20%. Talk to a trusted lender to find out which loan program is best for you. We, at Domain Homes, would be happy to recommend you to our preferred lender who can really help you each step of the way.
Closing costs includes pro-rated taxes, financing charges, government fees, and other miscellaneous fees such as Home Owner Association dues, if applicable. If you purchase a home from Domain Homes, we are willing to contribute a portion of your closing costs with our preferred lender program. Contact us and one of our New Home Specialists can explain how that works. If you’re buying a used home, be sure to consider the cost of renovations and upgrades.
3. What should I look for in a home?
The old real estate adage says, “Location, location, location.” Really it depends on what is important to you. Usually our buyers are looking for new homes in areas that are walkable and convenient to great schools, businesses, shops, restaurants, entertainment, etc. While location is very important, you should also consider the overall cost of ownership. Our new homes in the Tampa Bay area are built to meet or exceed the latest building codes and hurricane standards, so our homeowners save alot of money on insurance compared to that of older homes. Additionally our homes are built to the highest energy efficiency standards, which translates into huge savings in utility bills.
4. What will the mortgage company need from me to process my loan?
I know from experience that the least fun part of buying a home is gathering all the documentation that the lender requires. I would recommend you get a head start by gathering the basics even before starting the application process: last 2 paycheck stubs, last 2 bank statements, and last 2 tax returns. It also wouldn’t hurt for you to have your credit card or other loan statements on hand showing any outstanding balances. Your lender will probably ask for more, but having these items ready will help make that process go much smoother.
5. Does the inquiry about my credit affect my credit score?
“An abundance of credit inquiries can sometimes affect your credit scores since it may indicate that your use of credit is increasing. But don’t overreact. The data used to calculate your credit score does not include any mortgage or auto loan credit inquiries that are made within the 30 days prior to the score being calculated. In addition, all mortgage inquiries made in any 14-day period are always considered one inquiry. So, don’t limit your mortgage shopping for fear of the effect on your credit score.”
We hope you found this post helpful. Of course, if you have any additional questions, do not hesitate to comment below or contact us. At Domain Homes, our philosophy is simple… to build homes that inspire and enrich our homeowners lives. For more information, check out our website www.domainhomes.com and be sure to “Like” us on Facebook.