Can You Buy a Home for No Down Payment?
YES! USDA has a mortgage loan with zero down payment as long as you qualify! You must have a minimum of 640 credit score and moving a rural area such as Elmore County.
Why should I use a Realtor?
Just like ALL professions, not ALL realtors are the same! We all specialize in certain things so you must make sure that your realtor represents YOUR best interests. Second, an experienced Realtor can really keep you safe from possible liabilities, coordinate the entire process so you don’t have to, make sure you’re buying/selling in the RIGHT price range and not out of the market! Lastly, a good Realtor will have a database of people on hand at all times to help you!
How Much do I pay my Realtor?
If you are buying a home, you owe me nothing (except your referrals). If you are a seller, the typical real estate commission is 6% of the sales price. The seller is responsible for paying the buyer’s agent 3% and the seller’s agent 3% commission at the time of closing.
How much money does a Home Inspection cost?
Typically a home inspection depends on two things, the square feet of the home as well as if its on a crawl space or a slab. If the home is under 2000 sqft you’re looking at about $250-$300. But that’s MUCH better than finding out the home needs $1000’s worth of work to it!
How much are closing costs?
Typically a good rule of thumb is to multiply 3% of sales price and that will give you a good estimate of closing costs. In the Montgomery Alabama area sellers usually pay most or all of closing costs HOWEVER prepaids are negotiable.
What are prepaids?
Your first year worth of home owners insurance and property taxes. You pay these at closing so that your escrow account can be started by your mortgage company. They are then responsible for paying your taxes and insurance every year when they come due instead of you paying all at one time.
Should I buy a foreclosure?
Absolutely, as long as it meets your needs! Just know that they are sold AS IS meaning the seller will not make any repairs nor do they know the condition of the property AT ALL! PLUS in the state of Alabama, we have a 1 year Right of redemption. This means the homeowner that got foreclosed on has exactly one year to pay in FULL the amount owed plus interest in CASH. It’s rare that someone finds this sort of money but you do need to be aware of this!
Home Owners Insurance
Your insurance is based upon how much it would costs to completely rebuild the home. So if you’re getting a good deal on a home, your home owners insurance isn’t going to reflect that. Make sure to send the DECLARATION Page to your lender once you have chosen the right policy for you.
How much does an appraisal cost?
Typically around $450 paid up front to the lender and credited at closing. The reason for this is if the deal falls apart the appraiser still must be paid for his/her time. Note: the lender MUST order the appraisal however are NOT allowed to know who has accepted the assignment as it is on a rotation basis.
Should I have an appraisal before I List my home for sale?
If your real estate agent did their homework they SHOULD be able to find comparable homes to yours. This info is the same that the appraisers see. However if your home is in a rural area or unique, then yes you should. The costs is no more than $450 (depending how large your home is).
Why did my home not sell the 1st time?
There are a few factors and if you don’t have them ALL your home won’t sell. You have to have it Priced Right, Promoted Highly, Presented Wonderfully (in person and on the internet), and have the right Person doing it for you! So ask yourself, were you competitively priced, did you have great pictures, know the marketing that was done, and have your home look staged?
For more questions, please contact Sarah Little with Keller Williams Realty 334-294-2666 or firstname.lastname@example.org