The Top 3 Questions First Time Home Buyers Should Ask
Purchasing your first home is an exciting time to say the least, however you will need to go through a lot before you can actually call yourself a homeowner. Finding the perfect home is typically the easy part. Making an offer, having that offer accepted, and closing the deal can be a bit more difficult. From gathering all of your financial related documents, to applying for the mortgage, to scheduling an appraisal and home inspection, it can be a daunting task.
The good news is that by asking your Realtor a few key questions, you will have a much better understanding of the process and know exactly what is expected of you. Knowledge is key and will make everything go easier. So without further ado, the following information will provide you with the top three (3) questions that first time homebuyers should ask their Realtors.
Question #1- Will There Be Any Concessions In The Offer?
You have found the perfect home, and it is now time to put in an offer to purchase that home. Your Realtor will fill out all of the paperwork, but you should always ask him or her if there will be any concessions in the offer.
In essence, most first time homebuyers concentrate solely on the purchase price when making an offer. However, it is a great idea to ask for concessions as well. Concessions are things that the buyer is asking the seller for in order to sweeten the deal.
For example, you can ask the seller to contribute a certain amount of money towards your closing costs. You can also ask the seller to fix certain items or provide you with the funds in which to do so.
The bottom line is that asking about concessions prior to signing the contract will prevent you from being caught off guard when it comes time to close.
Question #2- Can I Get My Deposit Money Back If I Decide Not To Buy?
Typically speaking, when your offer is accepted, the seller will require you to make a deposit as a sign that you are actually planning to purchase the house. The deposit, also referred to as an earnest money deposit, can range from 1-2% of the purchase price of the property.
That being stated, the amount can vary and is typically part of the negotiation process. In addition to negotiating how much you will need for the earnest money deposit, it is also important to find out if that money is refundable.
Keep in mind that if you do not include a clause in the Purchase And Sales Agreement that states you have a set amount of time to retrieve your deposit, you may very well forfeit the money if you decide against purchasing the property.
Question #3- Who Schedules The Appraisal And Home Inspection?
When you purchase a home, the bank or lender will require an appraisal of the property in order to determine the true market value. The good news is the bank or lender will schedule the appraisal so you do not need to worry about that.
The home inspection is optional, however it completely benefits the homebuyer and should not be skipped. Typically speaking, the homebuyer is responsible for scheduling and paying for the home inspection. In conclusion, it is easy for first time homebuyers to become overwhelmed. However, a well-organized approach will significantly reduce your stress level and decrease the opportunities for mistakes to occur.
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