First Time Home Buyer FAQ’s
If you are a first time home buyer, there is a good chance you’ve got some questions. And we’ve got answers! Check out some of the most frequently asked questions we hear most often from people buying their first home.
1. How much money should I plan for my down payment?
Depending on your lender, the amount can vary, but it is a good idea to plan for at least 20% of the price of the home. To start saving for a down payment on a home try setting aside tax refunds and work bonuses and using an app to track your savings progress.
2. There are so many neighborhoods to check out! How do I know which one is right for me?
Determine what is most important to you. Schools? Location to work? A large yard? Neighborhood amenities? By listing out all of the things that are most important for you in a new home, you can start to narrow down your favorite neighborhoods. Still not sure where to look? Check out our “On the Road with #MARCUMsold” video tours to get your very own driving tour of some of our favorite neighborhoods!
3. What are closing costs and how much are they going to cost me?
Closing costs are a substantial expense that you’ll need to budget for when thinking about purchasing a home. These are expenses like homeowner’s insurance, home inspections and title searches. They typically run between 2-5% of your loan amount. Curious about what your closing costs might be? Check out this closing cost calculator here.
4. Should I build my dream home or buy an existing home?
Again, this depends on what is most important to you! If you want your home to be completely tailored to your needs and style, then a new construction home might be for you. On the other hand, if you don’t mind a project and love an established home in an established neighborhood, you might to check out existing homes! Check out these 5 Questions You Should Ask Yourself to help you decide.
5. Do I really need a Buyer’s Agent or can I just search myself?
A dedicated Buyer’s Agent will guide you through the entire home buying process, from navigating your mortgage options, to finding your dream home, to putting in an offer and negotiating the best deal, a Buyer’s Agent is a must! Find out exactly why you want a Buyer’s Agent here!
Want to see exactly what the home buying process looks like? Check out our 5 Step Process here!