Q: How Long Does It Take To Buy A Home?
A: The home buying process is different for everyone; there is no set amount of time. It depends on what homes are currently for sale, how long it takes you to find the one you want, how long it takes for you and the sellers to agree on the terms of the sale, how long it takes for you to get approved for a mortgage loan, what the title search reveals, and countless other factors. At a minimum, the process will probably take 1.5-2 months from start to finish (but it could take much longer than that).
Q: What Is The First Step In The Home Buying Process?
A: In today's day and age, most people begin the home buying process by browsing current listings online. While there is no harm in looking at available properties this way, you should really begin the process by talking to a mortgage lender to get prequalified or, better yet, preapproved. This will give you a realistic estimate of what your price range will be. Your next step should be to contact a real estate agent. Your agent can help you identify homes with good potential and arrange for you to tour your favorite homes in person.
Q: Financially Speaking, Does Buying A Home Make More Sense Than Renting?
A: Homeowners often find that their homes become valuable long-term investments. Home prices have consistently increased over the years, and many homeowners are able to sell their homes for greater amounts than they originally paid for them. Buying is especially advantageous right now, as interest rates are continuing to hover around all-time lows. Some first-time buyers hold off because they believe that they cannot afford a mortgage yet, but the important thing to realize is that as a renter, you are still paying a mortgage - it just happens to belong to someone else.
Q: What Is A Contingency?
A: A contingency is a certain term that must be met in order for something (such as a contract or an agreement) to be considered valid. They are incredibly valuable for anyone buying a home, because they allow the buyers to enter into a purchase agreement with the understanding that they will be able to back out of the agreement if certain things fall through. A financing contingency is a great example. An offer that is "contingent upon financing" will only be considered legally valid if the buyers are approved for their mortgage loan. Home purchase agreements can also be contingent upon the inspection, the sale of the buyers' current home, and many other things.
Q: What Is Earnest Money?
A: Earnest money is money you provide when you submit an offer to the sellers to show that you are serious about purchasing the home. Most experts recommend the earnest money amount range from 1-3% of the home's total purchase price. This earnest money will be held by an escrow officer (typically a title company) until closing, at which point it will be applied towards the closing costs. If the sale of the home falls through for any reason, the money should be returned to you.
Other Questions About Buying Real Estate?
Contact Eagle's Nest Realty!
We hope this information helps you begin to get a better understanding of the home buying process and how it typically progresses, but (if you're like most buyers) you probably have many other questions that haven't been addressed here. If that's the case, contact our Lake of the Ozarks REALTORS® for answers to your specific questions. We would be honored to assist you and make your dreams of buying a house in Sunrise Beach MO (or anywhere else around the Lake) finally come true!
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