Home Buyers ask a lot of questions – as they should – here are the top 5 questions asked and answered.
Home Buyers Questions – Top 5
Q. How much money do I need out of pocket to buy a house?
A. Depending on the type loan you have, to get started, you’ll need money for your earnest money, appraisal and inspections up front. Some of these costs may be paid at the time of closing.
Q. How much should the earnest money be and when is it cashed?
A. Earnest money in the Tulsa area is typically 1% of the sales price and is applied to your down-payment OR closing costs at the time of closing. If you have a loan requiring no down-payment, such as a VA loan, lower amounts may be acceptable. Earnest money is NOT held until closing – it is cashed when all terms of the contract are agreed upon. Read this for more information on earnest money.
Q. Do I have to sell my house before I can put an offer on another house?
A. Unless your income is high enough to afford two house payments, you need to sell your home first. However, once your home is under contract, you can make an offer contingent upon the successful sale of your home. Read more about buying and selling at the same time.
Home Buyers Questions – Top 5
Q. How much down-payment is needed?
A. Most Buyers are going to use FHA financing which requires a 3.5% down-payment. Conventional financing requires 5-20% and is not the best option unless you can put down 20%. VA financing does not require a down-payment.
Q. How much are my closing costs and can the Seller help with those costs?
A. Many of your closing costs will be directly related to the price of the home you are purchasing. Some costs are associated with your loan, and some are related to charges from the title company. The Seller can contribute up to 6% of the sales price towards your closing costs. Read more about Buyer charges here.
Don’t worry about home buyer questions – you don’t buy a house every day, and things change. Realtors expect you to ask questions and hopefully, we answer them well! If you are ready to buy a home, I hope you’ll give me a call! 918-852-5036.
Content written and published by Lori Cain.
