Frequently Asked Questions
Most loan programs require a FICO score of 620 or better.
While the broad down payment average is 11%, first-time homebuyers usually only put down 3 to 5% on a home.
A mortgage is an agreement between you and a lender (usually your bank) to repay the money you have borrowed from them plus interest. When you get a mortgage, the lender will give you a set amount of money to loan out for you to buy your home. When you receive this loan money, you are agreeing to pay back your lender/pay off your loan with interest that accumulates over a period of years.
Listing brokers represent sellers and charge a fee to represent them and market the property. Marketing may include advertising expenses such as radio spots, print ads, television, and internet ads. The property will also be placed in the local multiple listing service (MLS), where other agents in the area (and nationally) will be able to search and find the home for sale. Agents who represent buyers (a.k.a. buyer’s agent) are compensated by the listing broker for bringing home buyers to the table. When the home is sold, the listing broker splits the listing fee with the buyer’s agent. Thus, buyers do not pay their agents.
When you make an offer on a home, your agent will ask for a check to accompany it (checks are the same as cash, and the deposit is typically 1% to 2% of the purchase price). Earnest money is made in good faith to demonstrate – to the seller – that the buyer’s offer is genuine. Earnest money essentially takes the home off the market to anyone else and reserves it for you.
Home inspections are required if you plan on financing your home with an FHA or VA loan. For other mortgage programs, inspections are not required. However, home inspections are highly recommended because they can reveal defects in the home that are not easily detected. Home inspections bring peace of mind to one of the biggest investments of a lifetime.
Your real estate agent cannot tell you what you should offer, but they can help you to compare similar homes in similar neighborhoods to see what price they sold for. By asking your agent the high and low price for similar properties you can make an educated offer on a home.
Proof of employment, credit check, photo identification, previous address, banking info, reference letter, proof of residency
Some landlords are strict against subletting, and it could be a serious breach of contract. Make sure you can live with the penalty for breaking your lease if you absolutely must.
It may make sense to pay with a handwritten check mailed or delivered to the landlord. In that case, make sure you understand exactly when the landlord imposes a late fee (e.g., five days after rent is due) and how much that fee is. An apartment complex has at least one electronic option for paying rent, but there may be a convenience fee from $1 – $5 for doing so.
Most landlords are open to renewing the lease. A 30-day notice is standard notification prior to your lease termination date. In addition, having a good relationship with your landlord and open communication is key to future lease renewals.
Not cleaning the apartment sufficiently could be enough for the property owner/manager to withhold a portion of your security deposit. A good rule of thumb is that except for normal wear and tear, the apartment should be left the way it was when you moved in if you want to get the full deposit back.
Putting your own personal touch on an apartment can end up costing you at some complexes, while others do not mind as long as you put things back the way they were when you moved in.