Frequently Asked Questions

Frequently Asked Questions

We know that buying a new home can be overwhelming in today’s market.

We’re here to help you during the home buying process. And while we know that there is a lot that happens during the process, here are a few resources we’ve gathered to help you feel more confident in moving forward!

Q. I am a first-time home buyer. Where do I start?

Q. I am a first-time home buyer. Where do I start?

A. It helps to begin by following these 3 steps.

  1. Contact a Realtor to help you determine your needs and guide you through the home buying process.
  2. If you need a loan to purchase your home, your Realtor can help you get connected with a loan officer who can help you get pre-approved before you start shopping for your new home. Need help? Contact us to get you connected with a lender.
  3. Once you are pre-approved, your Realtor will match you with properties that fit your needs and wants and take care of the negotiations for you to get your offer accepted.

Q. What Credit Score do I need to get approved for a home loan?

A. Start by at least having a minimum Credit Score of 580.

Depending on which lender you choose, you will need a minimum score of 580 to be pre-approved for a home loan. The best way to determine your credit score is to visit with the lender, as their system is often more accurate than other 3rd party credit check systems. If your score is not high enough, your lender can help you with getting your scores ready to qualify for your new home.

Here are a few related resources that we think might help.

Q. How do I determine what I can sell my home for?

A. Get in contact with your Realtor.

Your Realtor can determine a price range of the current market value for your home through an in-depth analysis of the current market trends in your area. Your agent will also give you expert advice on how they will market your home and the steps you can take to prepare your home in the best way. Let one of our agents help you determine the current market value of your home.

Q. How do I determine what I can sell my home for?

A. Get in contact with your Realtor.

Your Realtor can determine a price range of the current market value for your home through an in-depth analysis of the current market trends in your area. Your agent will also give you expert advice on how they will market your home and the steps you can take to prepare your home in the best way. Let one of our agents help you determine the current market value of your home.

Q. How should I go about preparing my home to sell?

A. Here are 6 ways you can get started:

  1. Identify problems and make repairs as necessary. Fix obvious defects that will be visible to home buyers.
  2. Declutter and clean.
  3. Paint where it needs it most.
  4. If you have pets or smoke in the home, clean carpets and air out your home.
  5. Set the stage by making your house feel homey. Remember what you would like to see in a home.
  6. Speak with a Realtor for additional tips on preparing your home and getting the most from your sale.

Some Frequently Used Real Estate Terms

An appraisal is required to gather the estimated value of a piece of real estate. During the home sale, the mortgage lender sends out an appraiser to get a professional opinion of the value of the property. This helps the lender decide if the property is worth the amount of the loan the potential buyer is seeking.

An appraisal contingency is a clause that allows a buyer to dissolve a purchase agreement if a home’s appraised value is less than the sale price.

An appraiser hired by the buyer’s lender evaluates the value of the home to ensure that the loan is secured by an appropriate home value. Lenders want to ensure they are not “over-paying” for a property.

Closing costs are an assortment of fees, including fees charged by: a lender, the title company, attorneys, insurance companies, taxing authorities, homeowner’s associations, real estate agents, and other closing settlement related companies. These closing costs are typically paid at the time of closing a real estate transaction.

This is the investment a homeowner has in their home. To calculate equity, take the market value of the home and subtract any mortgages or liens against the property. The amount leftover is the amount of equity you have in the home.

If you buy a home worth $250,000 for $240,000, you gain what is known as instant equity, because there is a $10,000 difference between the value and the cost. When you sell a home you bought for $250,000 for $260,000, you’ll get to keep the equity in the home after the close, once all the expenses are paid.

It’s important to build equity as homeowners can leverage this financial asset to obtain loans to help finance items such as home repairs, or to pay off higher-interest debt.

FHA loans are part of a group of loans that are insured by the federal government. This means that instead of actually lending money, the FHA insures banks and private lenders that they will cover losses they might incur in the event that the borrower does not repay the loan in full or timely.

A homeowner’s association is a private association that manages a planned community or condominium. When you purchase a property that is managed by an HOA, you agree to abide by the HOA’s rules and pay its monthly or annual HOA dues. If you fail to pay and/or comply, they often have the ability to file a lien against the property and/or foreclose on the property.

An inspection happens when buyers pay a licensed professional inspector to visit the home and prepare a report on its condition and any needed repairs. The inspection often happens as part of the due diligence period, so buyers can fully assess if they want to buy a particular home as is, or ask the seller to either complete or pay for certain repairs.

A termination option period (known as “option period”) is a form of a due diligence period, however, it is only available to a buyer who separately purchases this right for a negotiable amount of money and for a negotiable period of time.

When a buyer has purchased this right to terminate, they are strongly encouraged to get all of their inspections and other due diligence performed during this option time frame, although doing so during this time is not required.

If the buyer chooses to terminate the contract within the option period, then the earnest money shall be released back to the buyer.

Getting pre-approved requires home buyers to fill out an application that allows a lender to determine their financial situation, including their debt-to-income ratio, ability to repay, and credit worthiness. Once this is in hand, the lender can give the buyer a letter stating the exact loan amount they have been pre-approved for along with the total sales price they are approved for.

A seller’s disclosure is a disclosure by the seller of information about the property, or which could affect a buyer’s decision to purchase the property, all of which to the best of the seller’s knowledge.

A seller must also indicate items that are not specific to the property itself but related to a person’s enjoyment of the property, such as pest problems, property line disputes, knowledge of major construction projects in the area, military base related noises or activities, association-related assessments or legal issues, unusual odors caused by a nearby factory, or even recent deaths on the property as permitted by law.

Let us help with all of your home buying & selling needs.

Napper Realty Team is a dedicated team of Real Estate professionals whose main objective is to help you reach your real estate goals.

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Charlotte Boyett Napper
Brandon Napper