Question 1

How long does it take to buy a home?

Accepted Answer

The typical home buying process takes 30-60 days from the time your offer is accepted to closing. However, the full timeline — including getting pre-approved, searching for a home, and finding the right property — can vary widely. Some buyers find a home in a few weeks while others take several months. Getting pre-approved early and working with an experienced agent can help streamline the process.

Question 2

How much down payment do I need?

Accepted Answer

The down payment required depends on the loan type. Conventional loans typically require 3-20%, FHA loans require as little as 3.5%, and VA and USDA loans may require zero down payment. While putting 20% down helps you avoid private mortgage insurance (PMI), many buyers choose to put down less and start building equity sooner. Down payment assistance programs are also available in Delaware, Pennsylvania, and Maryland.

Question 3

What credit score is needed to buy a house?

Accepted Answer

The minimum credit score varies by loan type. FHA loans generally require a minimum score of 580 (or 500 with a 10% down payment). Conventional loans typically require 620 or higher. VA loans don't have a government-set minimum, but most lenders require at least 620. Generally, a higher credit score will help you qualify for better interest rates and terms.

Question 4

Should I buy or rent?

Accepted Answer

This depends on your financial situation, goals, and how long you plan to stay in the area. Buying builds equity over time and provides stability, but it also comes with responsibilities like maintenance and property taxes. Renting offers flexibility but doesn't build wealth. As a general rule, if you plan to stay in an area for at least 3-5 years and can comfortably afford the payments, buying is often the better long-term financial decision.

Question 5

Do I need a real estate agent to buy a home?

Accepted Answer

While it's possible to buy a home without an agent, having a dedicated buyer's agent is strongly recommended. Your agent represents your interests exclusively, has access to listings and market data you may not find on your own, handles negotiations on your behalf, and guides you through the complex paperwork and legal requirements. In most transactions, the seller pays the buyer's agent commission, so there's no cost to you for having professional representation.

Question 6

What are closing costs and how much should I expect?

Accepted Answer

Closing costs are fees paid at the time of closing, beyond your down payment. They typically range from 2-5% of the purchase price and include lender fees, title insurance, appraisal fees, transfer taxes, and escrow prepayments. Your lender will provide a detailed estimate early in the process, and you'll receive a final Closing Disclosure at least three days before closing.

Question 7

What is earnest money?

Accepted Answer

Earnest money is a deposit you make when your offer is accepted, showing the seller you're serious about the purchase. It's typically 1-3% of the purchase price and is held in escrow until closing, when it's applied toward your down payment and closing costs. If the sale falls through for a reason covered by your contract contingencies (like a failed inspection), your earnest money is returned.

Question 8

What is a home inspection and do I need one?

Accepted Answer

A home inspection is a professional evaluation of the property's condition, covering the roof, foundation, electrical, plumbing, HVAC, and more. While not legally required, we strongly recommend never skipping the inspection. It can reveal costly issues that aren't visible during a showing and gives you negotiating power if problems are found.

Question 9

What happens if the appraisal comes in low?

Accepted Answer

If the home appraises for less than the purchase price, you have several options: negotiate a lower price with the seller, make up the difference with a larger down payment, challenge the appraisal with additional comparable sales data, or, if you have an appraisal contingency, walk away from the deal. Your agent will advise you on the best course of action based on the circumstances.

Question 10

Can I buy a home if I have student loans?

Accepted Answer

Yes, having student loans doesn't prevent you from buying a home, but they will factor into your debt-to-income ratio. Lenders look at your total monthly debt payments relative to your income. If your student loan payments are manageable, you can still qualify for a mortgage. Working with a knowledgeable lender who understands various loan programs can help you find the best path forward.

Home Buying FAQ

First-Time Home Buyer Guide

Mortgage & Financing Guide

How Much House Can I Afford?

Buying a Home in Delaware

Buying a Home in Pennsylvania

Buying a Home in Maryland

Home Inspection Guide

Closing Process Guide

Still Have Questions?