Real Estate 101

by Expert Contributor Sarah Forti, Owner of Forti Homes with Keller Williams Realty

ANSWERS TO QUESTIONS HOME BUYERS OFTEN ASK

Do I have to have 20% of the purchase price to put down to buy a home?

Putting 20% or more down on your loan will help you qualify for the lowest interest rate and fees. However, the average down payment in the country is 6%. The minimum down payment on a conventional loan is 3%, on an FHA loan is 3.5%, and on a VA or USDA loan it is 0%. Each program has their own credit score requirements and income limits, and each person and property’s situation is unique. It is important to speak with your local mortgage lender to find out what type of loan is best for you.

Do I have to have excellent credit to buy a home?

Your credit score is one of the biggest factors a lender will consider when determining your qualifications for a mortgage. A score of 740+ is considered “excellent” and will get you the lowest rates and fees available to you. A score in the 700-739 range is “good”, 630-699 is “fair” and 629 and below is “poor”. If your credit score is in the poor or fair category, conventional financing probably won’t work for you and you should ask your lender about FHA, VA, and USDA programs.

Can I get a home for less than the asking price?

Yes, you can! While the national media and Realtors are touting how high above asking price properties are selling, there are always bargains still to be had. If a property is sitting on the market for a few weeks, it is a good opportunity to make an offer below the asking price. If you are able to accommodate the Sellers with their preferred closing date or sweeten other terms of the deal, that can also buy you some negotiating dollars off the sale price.

How do I start the process of buying a home?

Your first step is to contact either a reputable Realtor or mortgage broker to get started. They will ask about your budget, your desired area, and what your goals are around real estate. Do you want to move closer to family, work, or activities you enjoy? Do you want more or less space? Is the move financially motivated? By asking you these questions, the professionals can help guide you in the right direction.

Expert Contributor Sarah Forti, Owner of Forti Homes with Keller Williams Realty

Forti Homes with Keller Williams Realty

610-647-8300

www.FortiHomes.com

744 W. Lancaster Avenue, Suite 125, Wayne, PA

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