Frequently Asked Questions

Earnest money is the money the buyers deposit immediately after they have gone under contract on a property. It is deposited in the title company's escrow account to be held as good faith to buy the property. The amount of earnest money that a buyer puts down on a property is not a set amount and  often depends on sales price. Oftentimes the amount is 1% of the purchase price. Talk with your Realtor about an acceptable amount of earnest money to put down on a property. Earnest money is held until closing and is applied to the downpayment of the home.

Closing costs are items such as down payment, fees paid to the title company for delivering a clear title and title insurance, fees to the lending institution to cover the work to close the loan, recording fee to the county, wire service fee, possible commissions paid, etc. Both buyers and sellers have closing costs. Talk with your Realtor about expected closing costs for your property.

Preapprovals are important to the home buying process because they are needed to make an offer on a property. Sellers want to know that you are qualified to purchase the property, and it tells a buyer how much they qualify to borrow from the bank. It’s also helpful to know exactly what you can afford before searching for a home so that you don’t fall in love with a house you aren’t qualified to purchase. 

Click here for a step-by-step guide to buying a home.

Click here for a step-by-step guide to selling your home.

Your down payment required may vary depending on your type of loan. FHA loans often require at least 3.5% down. Conventional loans generally require 5% down. If you are actively serving or have served, VA loans offer the option to put no money down. Some homebuyers opt to put 20% or more down, which allows them to avoid PMI, (Private Mortgage Insurance) an additional cost on their loan. Each buyer's situation is unique. Talk with your Realtor and a trusted lender to help figure out the best loan option for you.

Although it is convenient to look at online sources like Zillow, REALTOR, Redfin, etc. to see the value of your home, these are not often accurate numbers. At times they can be within the ballpark of what the home is worth, but more often these sites are a few thousand to over $100,000 away from an accurate price. They often don’t know if a home has been renovated or has massive deferred maintenance. It is best to get in touch with your trusted Realtor to get a CMA (Comparative Market Analysis) to find out the true value of your home or one you are looking to purchase.

Home inspections are most often conducted and paid for by a buyer when their offer has been accepted on a property. The home inspection is to give the buyer information on the home they will be purchasing. Recommended home inspections may vary on area, but often include the whole home, radon, sewer, and termite. Additional inspections such as mold can be added if the home inspector finds reason to believe there is an issue. Although the cost does fall on the buyer, it is well worth it to be able to pinpoint any potential large/expensive issues ahead of time, such as broken sewer line, roof issues, termite damage, electrical issues, etc.

Generally, it takes 30-60 days from the time of an accepted contract to closing on a financed sale. The lender must send the information for underwriting, order an appraisal, and ensure title work is completed to provide a free and clear title, while the buyer conducts inspections and the seller prepares to move.There are cases when it can be shorter or longer. Cash sales can often close quicker because there is no lending institution involved. It could be longer if both buyer and seller have situations where a longer close would be more beneficial.