Do you have a question about real estate? There’s a good chance we’ve been asked that question before. This post will be ever-changing as we will be adding Frequently Asked Questions of Home Buyers and Sellers along with our response. Take a look and if you don’t see your question – give John a call and he will gladly answer it. (John’s cell: 502-639-9264; Office line: 502-637-8863).

Question: What is the first step to the home buying process?

Answer: Unless you’re a real estate agent, you’ll probably ask this question every time you make a move. Whether you are a first-time buyer or a seasoned home owner, it’s an important question. The short answer is team with a good realtor. A good realtor can guide you through the process. But let’s look a little closer…
Most buyers need to borrow money to buy a home. Borrowing money to purchase a home requires borrower credit and a willing lender. Let’s touch on both.

  1. Credit- Know your credit score.
    Credit determines:
    a.) Who will loan you money
    b.) How much you can borrow
    c.) How many months/years you will have to repay what you borrow
    d.) What fees you will pay to borrow (upfront fees and as “interest” over the term of the loan which is usually paid monthly until the loan is paid in full)
    e.) The terms and conditions of the loan
  2. Lender-Like any other profession, lenders tend to specialize.
    Specialties include:
    a.) Income based (high income vs low income vs everything in-between)
    b.) Credit based (great credit vs poor credit vs everything in-between)
    c.) Occupant based (owner occupant vs investment property)
    d.) Property condition (new vs used vs renovation project)
    e.) Loan period (short term vs long term)
    f.) Type (mortgage brokers vs direct lenders)
    g.) Reputation (respectable vs predatory)

Buying a home is a major investment. Team with experienced professionals when you buy. Let the first member of your team be an experienced realtor. From there, he or she will guide you all the way.