BUYING FAQ’s

Whether you're a first-time buyer or a seasoned investor who needs a refresher on how transactions work, here are some answers to the most often asked questions.

What is the first step in buying a house?

The initial step in your journey to homeownership is obtaining pre-approval for a mortgage. This crucial move involves securing a pre-approval letter from a lender, which effectively sets the stage for your home search by establishing your budget and demonstrating your serious intent to sellers.

What is the average time it takes to buy a house?

The process of purchasing a home typically spans from 10 to 12 weeks, starting from the initial online search to the closing of escrow. Once a home is selected and an offer is accepted, the average time to close escrow is about 30 to 45 days, under standard market conditions. It's worth noting that buyers who pay with cash and come well-prepared can sometimes complete the purchase more swiftly.

How much should I pay an agent to assist me in purchasing a home?

When hiring a buyer's agent, you can typically expect to pay a commission ranging from 2-4% of the home’s purchase price. This fee reflects the agent's commitment to providing expert guidance throughout every step of the home buying process. The specifics of this commission are detailed in the Buyer's Exclusive Agency Contract, which also outlines how the agreed-upon commission is handled in situations where the seller agrees to pay all realtor fees. This contract ensures you have a professional who is exclusively looking out for your best interests, even when the seller covers the commission, allowing you to benefit from comprehensive support without extra costs. It's essential to discuss these details with your agent at the beginning of your search to ensure transparency and understanding of the value they bring to your home buying journey.

How much do I need for a down payment?

Generally, a minimum down payment of 3% of the home's purchase price is required. However, different loan types and lenders might ask for at least 5% down. Putting down 10% can lead to savings over time, but for the most significant financial benefit, including avoiding private mortgage insurance (PMI), a 20% down payment is ideal.

What is the first step in buying a house?

The initial step in your journey to homeownership is obtaining pre-approval for a mortgage. This crucial move involves securing a pre-approval letter from a lender, which effectively sets the stage for your home search by establishing your budget and demonstrating your serious intent to sellers.

What is the average time it takes to buy a house?

The process of purchasing a home typically spans from 10 to 12 weeks, starting from the initial online search to the closing of escrow. Once a home is selected and an offer is accepted, the average time to close escrow is about 30 to 45 days, under standard market conditions. It's worth noting that buyers who pay with cash and come well-prepared can sometimes complete the purchase more swiftly.

How much should I pay an agent to assist me in purchasing a home?

When hiring a buyer's agent, you can typically expect to pay a commission ranging from 2-4% of the home’s purchase price. This fee reflects the agent's commitment to providing expert guidance throughout every step of the home buying process. The specifics of this commission are detailed in the Buyer's Exclusive Agency Contract, which also outlines how the agreed-upon commission is handled in situations where the seller agrees to pay all realtor fees. This contract ensures you have a professional who is exclusively looking out for your best interests, even when the seller covers the commission, allowing you to benefit from comprehensive support without extra costs. It's essential to discuss these details with your agent at the beginning of your search to ensure transparency and understanding of the value they bring to your home buying journey.

How much do I need for a down payment?

Generally, a minimum down payment of 3% of the home's purchase price is required. However, different loan types and lenders might ask for at least 5% down. Putting down 10% can lead to savings over time, but for the most significant financial benefit, including avoiding private mortgage insurance (PMI), a 20% down payment is ideal.