Angie from Hunter’s Creek asks:
Kevin, I’ve read online this week that there are new home loans that require only 3% down. Is that true or are they scams?
Angie that’s a great question! This past week both Fannie Mae and Freddie Mac, the backers of most of the mortgages in the US, did announce plans to bring back the 3% down payment loans. Of course, you’ll still need money for closing costs and the criteria for obtaining the mortgage are just as strict as before. Typically you’ll need a minimum of a 640 credit score, no outstanding collections or defaults, and two-years of stable income.
Mike from Winter Garden asks:
Kevin, I’m considering purchasing a home from a home builder? Do I need a real estate agent or can I just go in and deal directly with the builder’s team?
Mike, thank you for the question! This is one of my favorite questions that I get in real estate. I like to answer the question with a question before really diving into the answer. If you were charged with a crime, would you go before a judge without an attorney or would you hire the best attorney you could afford? Most people say that they would hire the best attorney that they could afford. The same theory applies to purchasing a home from a home builder. The sales associate in the builder’s office/model is an employee of the builder and legally has to represent the builder’s best interest. If the builder’s best interests are the same as yours, then great. However, at the end of the day, the sales associates job is to make sure the builder makes as much money as possible. Always bring a trusted REALTOR along with you BEFORE visiting or contacting a builder. The REALTOR is there to advocate for you. He or she will help guide you through the process of negotiating the price, upgrades, closing costs, walkthroughs, inspections, and more. The best part is that the REALTOR is legally obligated to represent YOUR best interest yet the REALTOR’s commission is paid by the builder. Pretty awesome, right?
Jesus from Longwood asks:
Do I really need to have a home inspection done on the house I’m buying?
Jesus, the simple answer is YES! Once you close on the home then you own it and any problems that may be hiding behind those walls. A licensed home inspector is there to find the problems during the inspection period, arming you with the knowledge you need to determine whether or not to move forward. Purchasing a home is the largest purchase most people make in their lifetime and a home inspection gives you the peace of mind knowing that you are making a good investment. Your REALTOR can refer you to a couple inspectors he or she works with and trusts. Your REALTOR will also guide you through reading the inspection report and any negotiations with the seller that may be needed as a result of items discovered during the inspection.
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Each Friday we post questions we get right here in our blog! Submit your question below and Kevin will send you a private email answering your question! Your question could also be featured here on our blog!