Homebuyer FAQ

Hi, I’m Evan Parker with Cedar & Stone Realty. If you’re buying a home in the U.S., questions can come up long before closing. Let’s walk through the numbers, financing, offers, and a few details that can catch first-time buyers off guard.

First, let’s talk about your budget. If you’re buying a $400,000 home with a 10% down payment, you’ll need $40,000 upfront and a $360,000 mortgage. Closing costs typically add another 2% to 5%, or around $8,000 to $20,000. You’ll also need to account for monthly expenses like property taxes, insurance, mortgage insurance, and HOA fees. Make sure you understand the full monthly cost before deciding what you can afford.

Next, let’s look at financing. Getting preapproved gives you an idea of how much you may be able to borrow, but it doesn’t guarantee a loan. When comparing Loan Estimates, pay attention to interest rates, APR, lender fees, monthly payments, and cash needed at closing. A lower interest rate may come with additional upfront costs, so compare the overall expense. Also, check whether your rate is fixed or adjustable, how long it stays locked, and whether mortgage insurance is required.

When you’re ready to make an offer, pay attention to the contract details. Earnest money shows you’re serious about buying, but the conditions for getting it back depend on your agreement. For example, if you offer $400,000 and the home appraises at $385,000, you may need to renegotiate or cover the difference. Before closing, review your Closing Disclosure, which you’ll generally receive at least three business days in advance. And always verify wire transfer instructions through a trusted contact to avoid scams.

Buying a home doesn’t have to feel overwhelming. With the right budget, financing, and preparation, buying a home becomes much easier. Reach out today, and let’s take the next step toward your new home together.