We have helped over 200 buyers and sellers realize their real estate dreams. And, oddly enough, our buyers always have the same home buying concerns and questions. So, we thought we’d answer them for you, here.
- 1. What if I can’t afford it?
- 2. I don’t have the best credit, can I still qualify?
- 3. Do I need a down payment when buying a home?
- 4. Are there home buying programs/grants that I can take advantage of?
- 5. I am a public servant, do I qualify for special home buying programs/discounts?
- 6. How much are buyer closing costs?
- 7. Do I need to hire a Realtor® when buying a home?
- 8. Do I have to pay commission to a Realtor®?
1. What if I can’t afford it?
This is probably the biggest concern for our buyers. Buying a home is a huge investment, and most buyers are not sure what they are comfortable with paying on a monthly basis.
At this point, we advise our buyers to speak with an experienced lender. The lender will help you review monthly budgets and narrow down a purchase price, based on the comfortable monthly payment and loan program.
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2. I don’t have the best credit, can I still qualify?
Don’t disqualify yourself! There are loan programs that allow for credit scores as low as 580. Speak with an experienced loan officer so he or she can review your credit with you and create a strategy for credit improvement and strengthening.
This will be more challenging, but there are ways to buy a home with bad credit.
3. Do I need a down payment when buying a home?
Contrary to popular belief, it is possible to buy a home without a down payment, or a small down payment. Talking with lenders about possible mortgage programs is a free consultation. Ask your Realtor® to connect you with one, or more, of their trusted lenders to discuss various options.
4. Are there home buying programs/grants that I can take advantage of?
Yes, absolutely! Maryland offers many different first time home buyer grants and programs. Familiarizing yourself with them all, and talking with a lender will help you choose which program make the most sense for you. You can view some of the first time home buyer programs, that Maryland offers, here.
5. I am a public servant, do I qualify for special home buying programs/discounts?
We don’t like using the term “public servant.” Rather, we call you ‘heroes.’ More specifically, Maryland Hometown Heroes.
The Maryland HOMEtown Heroes Program is our way to give back to those who make our community a better place to live, by offering real savings when buying a home.
If you want to know more about this program, you can go to MDHOMEtownheroes.com or call 443-692-8800 ext. 705.
Follow Maryland HOMEtown Heroes on Facebook.
6. How much are buyer closing costs?
This typically depends on the price of the home you are buying. When buying a home, the most common closing cost is the down payment, but there are other costs and fees that are associated with your home purchase. Not including your down payment, average closing costs generally range from $2,500 to $5,000 or, rather, 6% of your loan.
7. Do I need to hire a Realtor® when buying a home?
You don’t need to have a Realtor® to buy a home. There are For Sale by Owners (FSBO) in which you will deal directly with the seller. However, at least in the state of Maryland, having a buyers agent is typically paid for by the seller. It is in your best interest to make sure that you are represented properly when buying a home. You wouldn’t want to be taken advantage of on one of the most expensive purchases of your life.
8. Do I have to pay commission to a Realtor®?
No. In Maryland, buyers are not required to pay their real estate agent commission. Typically, the seller pays all commission to the listing and buyers agent, out of the sale proceeds. In Maryland, Realtors typically charge around 6% commission for selling a home. This amount is typically split 50/50 between the listing broker and the buyers agent.