If you’re here, chances are you or your client are thinking about buying their first home. Perhaps the process has begun already – either way, here are some of the frequently asked questions (with answers!) for first time home buyers. This post is a 2 part series, so if you landed here first, check out part 1 for questions 1-5 here! 6.
6. What if the seller changes their mind?
The short answer is yes. When selling a home, the contract requires that the seller provide written notice of their intent to cancel the transaction if they can’t close by a specific date, and they usually need a good reason to do so. If the home is already under contract, the seller typically would need to compensate the buyer based on the terms of the contract. Speak to your real estate agent for more on the details and terms of any contract you sign.
7. Should I get pre-approved even if my realtor will show me homes now?
It depends! If you have bad credit then we generally suggest that you wait until your credit improves at least 6 months before applying for a mortgage so that there are no surprises when it comes down to that step of the process. However, reaching out to the mortgage company may yield surprising results. Many people think they can’t qualify, only to find that they actually do! Furthermore, if you’re looking at homes without any idea of the price range you’ll be in, you may be wasting time on properties you’d not be able to finance, or are looking under the price range and missing out on more homes that could meet your needs.
8. What is a pre-approval exactly?
A pre-approval is essentially an estimation of how much of a mortgage you will qualify for if you were to apply for it today. It’s just an educated guess about how much your mortgage payment will be. Many mortgage lenders will provide these easily and quickly as a way to ensure that the prospective buyer is ready to start viewing homes to purchase. The buyer can also get information from a mortgage lender regarding the necessary requirements that may be needed to get the best mortgage, or to be able to get one at all. For example, a lender may say that a buyer qualifies for a $150,000 mortgage, but only after they pay off a specific debt.
9. Can I buy a home with others?
Yes! Co-borrowing for a mortgage is common and a great way to get into a property with those who will have an interest in it. Commonly, a couple will be co-buying a home but it’s totally possible to go in on a home loan with other family members or friends even. Look into what the lenders you’re interested in have available for resources, and for some more general info, here is a great article on buying a home with others. Basically, everyone who will have an interest or share in the mortgage must qualify.
10. How long does the process take?
This is a common question and there isn’t a one-size-fits-all answer because it really depends on the market, property, your situation and what happens along the way. There are lots of moving parts to buying a home, but one of the most important things to remember is that you and your agent both need to stay in touch and stay organized! It is a process that is tailored to each specific buyer, and the right agent will take as much time as necessary to ensure you find the perfect home. You will likely be in contact with your agent at least once a week – if not more.
Having the right Realtor at your side through the process is also a great way to be sure that you’re able to have confidence in the buying process. If you’re looking to buy, sell or invest in the Tulsa area or Northeast Oklahoma, I’d love to serve you. Having me represent you as a buyer is completely free! You can reach me here and set up to jump on a phone or Zoom call!