What is the first step in the home buying process?
The initial step is getting pre-approved by us for a mortgage, which helps determine your budget and shows sellers that you are a serious buyer.
What is the difference between pre-qualification and pre-approval?
Pre-qualification is an estimate of how much you can afford, while pre-approval involves a more in-depth financial review, making your offer more credible to sellers.
What are closing costs, and how much should I expect to pay?
Closing costs include fees for services like appraisals, title searches, title insurance, doc stamps with the county, recording fee’s, escrows, etc.. They typically range from 2% to 3% of the loan amount.
How long does the home buying process typically take?
The timeline varies, but on average, it takes 30 days from the accepted offer to closing. We have been able to close a loan within 1.5-2 weeks but we prefer to quote within 30 days to be safe and realistic.
Can I make an offer below the asking price?
Yes, you can make an offer below the asking price. Negotiation is a common part of the home buying process. However, you may want to consider how popular a home is, your down payment amount, and if you are requesting seller credit to go towards your closing costs. All of these factors could persuade the sellers to accept another offer if you are too aggressive with your offer price.
How much should I budget for a down payment?
Down payments typically range from 3% to 20% of the home’s purchase price. The exact amount depends on factors like the loan type and your credit score.
How does my credit score impact the mortgage process?
A higher credit score often results in lower interest rates, potentially saving you money over the life of your loan. Our minimum credit score to still be eligible for a low down payment is 580.
What is a home inspection, and is it necessary?
A home inspection assesses the property’s condition. While not mandatory, it’s highly recommended to identify potential issues before finalizing the purchase. In Florida, you want to at least get a wind mitigation and 4-point inspection to submit to insurance companies for any possible insurance premium discounts.
Are there government programs for first-time home buyers?
Yes, programs like FHA and VA loans offer benefits for first-time buyers, including lower down payment requirements and more flexible eligibility criteria. We also offer Florida’s Hometown Heroes for down payment and closing cost assistance.
What happens on closing day?
On closing day, you’ll sign the final paperwork, pay the remainder of your down payment and closing costs, and officially take ownership of the home, receiving the keys to your new property.
