Four Real Estate Buyer FAQs

Does the whole real estate process have you feeling intimidated? We understand. Becoming a homeowner can be confusing, frustrating and complicated - but it doesn’t have to be! Here are four of the most common questions we hear from our clients with answers. 

Am I ready to be a homeowner?

So you’re thinking of purchasing a home but unsure if it’s the right time? We understand that. Purchasing a home is one of the biggest investments in your life so make sure that you’re ready both financially and personally. Do you have a reliable job? What’s your debt to income ratio? Have you checked your credit score? When financing a home, lenders scour your credit reports, debt, employment history and more to make sure you’re a viable candidate for a mortgage. And above all - make sure you’re personally ready to buy a home. 

To rent or to buy?
Ask anyone and most will tell you they desire to own a home rather than rent. But how do you know if homeownership is actually right for you? Both buying and renting have pros and cons but it all comes down to what you prefer. Are you ready to take the next step to homeownership or does renting make more sense? While renting does provide flexibility, owning a home is a great way to build wealth. Like we said - it’s all about your unique situation.

Is a home warranty necessary?
Our answer? Yes. A home warranty offers coverage on everything from appliances to specific items throughout your home. Coverage typically lasts for a year and starts immediately after you purchase your home. This is a smart move, especially for new homeowners because the warranty can cover unexpected repairs and replacements.

What’s the difference between pre-qualifying and pre-approval?
Before you go house hunting make sure to get your pre-qualified! Pre-qualifying with a lender determines the likelihood of you being able to get approval for a home loan. The lender will provide an estimate of how much home you can afford, giving you a better idea of what to look for. On the other hand, pre-approval means your lender has taken a deeper dive into your financials and better determined what you can actually afford. 

Here’s a tip: Use pre-qualifying for your own search into real estate and pre-approval before you begin working with a real estate agent.

Still have a few questions? We have answers! Contact us or give our team a call at (256) 230-5950.