Am I ready to buy a home? This is a question only you can truly answer. Some of these questions may help you decide— “How much of a mortgage payment can I, or am I willing to, be responsible for?” A hefty mortgage, even if you actually can make the payment, may cause you a lot of stress. Be sure you are comfortable with your mortgage payment. “Will I have the time to maintain my home; interior, exterior, and yard?” Being a Homeowner brings added responsibilities. No one else will shovel your driveway, weed your lawn, repair any damage that may occur, etcetera. Some communities, usually town-home and condominium communities, include what’s called an HOA that may take care of some of these responsibilities. “Will I be moving around a lot in the near future?” A good rule of thumb is if you plan to live in a certain area for two years or more, it is definitely worth purchasing a home. Statistically, you will earn more in appreciation in those two years than you will have saved while paying rent. However, if you are going to school or are otherwise planning to move a lot, the buying and selling process may take more time and add a lot of stress to your load.

Can I finance my closing costs? Yes! The Seller and your Lender must be willing to allow it, but most of the transactions done in Utah include the Seller paying the Buyer’s closing costs. Using an addendum, they can be added on top the purchase price and can thereby be included in your loan. Something to consider is that, if you are financing the entire purchase price, the home must appraise for that purchase price. It can be a little tricky so be sure you have a good Realtor to make sure you are protected and that everything goes smoothly.

Can I use several Realtors at the same time? While it is always unfair to all the Realtors involved if you do this, in some cases it is actually illegal. If you have signed a Buyer-Broker agreement with a Realtor, you are bound by that document until you either buy a home or the agreement expires, even if you decide you do not want to use that Realtor any more. You can request the Broker, not the Agent, to release the agreement and allow you to enter into an agreement with another Real Estate Company. You will get better service from a Realtor if he/she knows you are being loyal to him/her. Your Realtor’s commitment will be matched by yours.

Does the Seller pay my closing costs? The offer can be constructed that way, yes. You can use an addendum to increase the purchase price to include the amount of closing costs you want the Seller to contribute. Your Lender and the Seller must be willing to accommodate this. It can be complicated, so you’ll definitely want a Realtor’s help to protect you and your money.

How long does it take to close before I can move in? Time of possession varies for each situation and is determined when writing an offer. It depends on your Loan Officer, your Lender, and the personal situations of both the Buyer and Seller. It usually takes about a one month from the time the offer is accepted until the transaction is closed (when you sign all the paperwork at the title company). A typical offer will require that possession be transferred upon recording (which is when the deed is actually recorded with the county under the new owner’s name). Once the transaction has closed, depending on your county and title company, the deed should record the next business day.

How much are closing costs? Closing costs vary depending on the situation and the price of the real estate you are purchasing. If you are purchasing a property outright with cash, then your closing costs will be minimal. If you are getting a loan, a safe estimate of your closing costs would be about three percent of the purchase price.

How much can I afford? You should get pre-qualified with a Mortgage Officer before deciding how much you can, or are willing to, afford. This will depend on many factors. Some of these factors are your credit score and history, any other debts or financial obligations you have, and your income. You will also want to consider things like “Will the home I want include HOA fees?” and “How much will my homeowner’s insurance cost for the type of home I want?”

How much earnest money will I need? The amount of earnest money you need depends on the price of the home you are trying to purchase. While some situations permit more or less earnest money, the typical amount is either $500 or $1000. If you are buying a bank-owned home, most banks will require at least 1| of the purchase price be deposited as earnest money. Your Realtor will know how much earnest money you need for your individual situation.

How much money will I need to buy a home? This depends. Once you get pre-qualified with a Loan Officer, he/she will be able to give you a more specific answer to this question. You will need at least your earnest money since it is deposited when the offer is accepted. You may be able to finance the closing costs. 100| financing is available with most Lenders, but that does not mean it is the right choice for you. Talk with you Loan Officer about which option will best meet your needs.

What are closing costs? Closing costs are fees that are charged to the purchaser when buying real estate. They usually consist of loan origination fees, lender fees, title fees, property fees, and recording fees. Buyers rarely, if ever, pay a real estate agent’s commission when buying a home.

What are HOA fees? Home Owners Association fees are affiliated with specific communities, typically condominium and town-home complexes. Each Homeowner in that community pays into an account that may, or may not, take care of things like pool/common space maintenance, insurance, snow removal, etcetera. Each HOA functions only for their individual community. If the home you wish to purchase is part of an HOA, be sure to make yourself aware of what things are paid by the HOA and what the monthly fee is.

What is earnest money? Earnest money is a deposit that goes towards the purchase price of your home. It demonstrates to the Seller your serious intent to purchase the property. If either the Buyer or Seller defaults on any of their obligations during the transaction, the earnest money can be released to the opposite party. A good Realtor will help you protect your earnest money deposit, and notify you beforehand to help prevent any loss.

Who pays for the appraisal? The Buyer pays for the appraisal. If the transaction is closed, the appraisal fee will be included in the Buyer’s closing costs. If the transaction fails and the appraisal has already been done, the Buyer must still pay the appraiser.