How much do I need to save up for a down payment?
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A conventional loan down payment is around 5% - 20%, but other types of financing require as little as 3.5% down. A mortgage lender can tell you what types of loans and programs you qualify for.
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How do I know if I qualify for a loan and how much I can afford?
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Contact a mortgage lender to get a pre-approval for a loan. The lender will ask you some basic questions about your income and debts and can tell you what amount you can be approved for, and how much your mortgage payments will be. Ask me for my lender recommendations!
What does the lender need from me to give me a loan?
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Usually, you are asked to provide your last two tax returns to show proof of income and/or last 2 pay stubs. You should also provide recent bank and credit card statements. You will also be asked for your social security number so they can run a credit check.
What’s the difference between pre-approved and pre-qualified?
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While often used interchangeably, these terms don’t mean the same thing. Pre-qualification is an estimate of what you may be approved for based on only the verbal information you provide. Pre-approval means the lender has verified your income and debt information and run a credit check.
NAR Settlement Information
for Buyers
HERE’S WHAT THE NAR SETTLEMENT MEANS FOR YOU
Buying a home is one of the largest financial transactions most people will ever
undertake. Agents who are REALTORS® are a trusted source of advice and stand
ready to help you navigate your homebuying journey and make the choices that
work best for you. NAR’s recent settlement has led to several changes that
benefit homebuyers, and we wanted to clearly lay them out for you.
Here is what the settlement means for all HOMEBUYERS:
• You will sign a written agreement with your agent before touring a home.
• Before signing this agreement, you should ensure it reflects the terms you
have negotiated with your agent and that you understand exactly what
services and value will be provided, and for how much.
• The buyer agreement must include four components concerning
compensation:
a. A specific and conspicuous disclosure of the amount or rate of
compensation the real estate agent will receive or how this amount
will be determined.
b. Compensation that is objective (e.g., $0, X flat fee, X percent, X hourly
rate)—and not open-ended (e.g., cannot be “buyer broker
compensation shall be whatever the amount the seller is offering to
the buyer”).
c. A term that prohibits the agent from receiving compensation for
brokerage services from any source that exceeds the amount or rate
agreed to in the agreement with the buyer; and,
d. A conspicuous statement that broker fees and commissions are fully
negotiable and not set by law.
• Written agreements apply to both in-person and live virtual home tours.
• You do not need a written agreement if you are just speaking to an agent at
an open house or asking them about their services.
• The seller may agree to offer compensation to your agent. This practice is
permitted but the offer cannot be shared on a Multiple Listing Service (MLS)—
MLSs are local marketplaces used by both buyer brokers and listing brokers to
share information about properties for sale.
REALTORS® are members of the National Association of REALTORS®
• You can still accept concessions from the seller, such as offers to pay your
closing costs.
These practice changes will go into effect no later than August 17, 2024.
Here is what the settlement doesn’t change:
• Agents who are REALTORS® are here to help you navigate the homebuying
process and are ethically obligated to work in your best interest.
• Compensation for your agent remains fully negotiable, and if your agent is a
REALTOR®, they must abide by the REALTOR® Code of Ethics and have clear
and transparent discussions with you about compensation. When finding an
agent to work with, ask questions about compensation and understand what
services you are receiving.
• You have choices. Work with your agent to understand the full range of these
choices when buying a home, which will help you make the best possible
decision for your needs.
More details about these changes and what they mean can be found at:
THE PROCESS AT A GLANCE
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1. Meet and Chat with Me
(Either in person or by a zoom call)
2. Review & Sign the Buyer Brokerage Agreement
(In person or digitally)
3. Obtain Lender Pre-Approval (If needed)
4. Start Home Search
5. Make an Offer & Go Under Contract
6. Inspections, Loan processing & Appraisal
7. Closing Day!
