All Your Burning Questions About Home Buying – Answered!

Whether this is your first time buying a home or you’re a seasoned buyer, you will certainly have questions. Here is a list of some of the more commonly asked questions, finally answered.

How long does the buying process take?

From the moment a buyer begins research online about homes, neighborhoods and lending to the day they close on a home can be up to 2 years. However, it only takes about 2 months to buy a home once you are ready; 30 days to tour available homes on the market and 30 days to close.

Will I get my earnest money back if the contract is not accepted?

Yes. Typically the check will not be cashed until the contract is executed.

What is the process to get my earnest money back if the contract is accepted and the home inspection finds an issue?

Inspection reports nearly always come back with something, but many problems are very minor. First, you should have your Realtor request for repairs or cash in lieu of repairs. If agreeable terms cannot be met, your Realtor can draw up an amendment terminating the contract and directing the Title company to release the earnest money. You may choose to exercise your option to terminate for any reason within the “Option Period” and receive your earnest money back without objection.

When will I get the keys?

Keys are given to the buyers after both parties have signed AND money from the lender has been received by the sellers. These events do not always happen on the same day especially if you are closing on a Friday afternoon.

What happens at the closing?

At closing, your title agent will go through the sales contract, mortgage documents and deed with you. You and the sellers sign any required documents and you both pay closing costs.

Is the closing date on my contract guaranteed?

Closing dates can vary due to delays with the lender, the title company, the sellers or the buyers. All parties need to work together swiftly to ensure a timely close. If your lender or title company requests supplemental information, please work quickly to deliver.

What monies will I need to come in with?

At closing, you will have closing costs and your down payment. Closing costs are fees incurred by the seller and buyer during the process of selling a home such as appraisal, loan origination, title insurance, property taxes and a few others. All monies will be outlined in the final settlement statement provided by the title company. Funds must be wired or in certified check.

How long does the home inspection take?

A home inspection is usually 3-5 hours. Most inspection companies only schedule one inspection a day though as they need several hours to also write up the report. Many clients ask if they have to be at the house for the entire inspection. It is recommended to at least be present for the final walk-through.

Do I really need a home inspector?

Yes! A home inspector may not be cheap, but the money is well spent to catch problems with a home that could become very costly later.

How much should I offer?

There is no magic number or percentage. A REALTOR® will review market data of comparable homes recently sold and advise you on a good offer price for your home.

When should I make an offer?

If you find a home you are interested in, you should make an offer right away. In the Houston market, homes are going under contract in as little as one day, and often times have multiple offers. Sellers aren’t willing to wait a day or two while you think about it.

What is the 80-10-10 rule?

If a home offers 80% of what you’re looking for, 10% of what you can change, and 10% of things you can live with, buy it! Of course you want the perfect home, but unless you design it yourself, you’re buying a home with a few things that aren’t in your dream home.

Is there anything I should NOT do during the house hunting process?

Don’t make any large purchases. I know you want to start shopping for a new couch to go in your new home, but it can wait until after you close.

What is the likelihood of a multiple offer situation?

In Houston, multiple offers are common right now, especially with homes listed under $250K.

Do you have more questions? Send me a message or leave a comment!