Frequently Asked Questions (FAQ)


1. How much should I save for a down payment?

The ideal down payment is typically 20% of the home’s purchase price, but it can vary. Many first-time buyers qualify for loans with as little as 3% down. Your lender will help determine the best options for you based on your financial situation.


2. What is pre-approval, and why is it important?

Pre-approval is a process where a lender evaluates your finances to determine how much they’re willing to lend you. It’s essential because it gives you a clear idea of your budget and shows sellers that you’re a serious buyer, improving your chances of securing a home.


3. How long does it take to buy a home?

The process can vary, but on average, it takes 30 to 60 days from making an offer to closing on the property. This timeline can depend on factors like market conditions, loan approval, and negotiations.


4. What is an earnest money deposit?

An earnest money deposit is a good faith payment made when you make an offer on a home. It shows the seller you’re serious about the purchase. If the deal goes through, the deposit is applied to your down payment or closing costs.


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

While you’re not required to hire a real estate agent, it’s highly recommended, especially for first-time buyers. A qualified agent from Elite Realty Group can guide you through the process, help you negotiate, and ensure everything runs smoothly.


6. What is a home inspection, and do I really need one?

A home inspection is an evaluation of the home’s condition by a licensed professional. It’s essential because it helps you uncover any potential issues with the home, such as structural problems or plumbing issues. It's highly recommended to avoid unpleasant surprises later.


7. What are closing costs?

Closing costs are the fees and expenses associated with finalizing a real estate transaction. These can include loan origination fees, title insurance, appraisal costs, and attorney fees. Closing costs usually range between 2% and 5% of the home’s purchase price.


8. How do I know if I’m ready to buy a home?

Buying a home is a big commitment. If you have stable income, a manageable debt load, and enough savings for a down payment, you're likely ready to buy. It’s also important to be ready for the responsibilities that come with homeownership, such as maintenance and repairs.


9. Can I back out of the deal if I change my mind?

In most cases, you can back out of the deal during certain periods, such as during the inspection contingency or financing contingency periods. However, backing out without a valid reason can result in losing your earnest money deposit.


10. What’s the difference between a fixed-rate and adjustable-rate mortgage (ARM)?

  • Fixed-rate mortgage: The interest rate stays the same for the entire loan term, offering predictability in payments.
  • Adjustable-rate mortgage (ARM): The interest rate changes periodically based on market conditions. While ARMs may have lower initial rates, they can increase over time.

11. How do I know if the home is priced correctly?

Your real estate agent from Elite Realty Group will conduct a comparative market analysis (CMA) to help determine if the home is priced fairly compared to similar homes in the area. This analysis will help you make an informed offer.


12. Do I need to worry about home insurance?

Yes, homeowners insurance is typically required by lenders and protects you against loss or damage to the home. It’s also a good idea to consider additional coverage, like flood insurance, depending on the area.


13. How do I make an offer on a house?

Once you find a home you like, your real estate agent will help you make an offer. The offer will include the price you’re willing to pay, any contingencies (like a home inspection), and the closing date. Your agent will handle the negotiations with the seller.


14. How can I track my home-buying progress?

You’ll be able to track your progress with the help of your Elite Realty Group agent. They’ll provide updates on offer status, inspections, loan approval, and closing steps. You can also use the tools and checklists available in our Home Buyer Resource Center to stay on top of your tasks.


15. What happens after I close on the home?

After closing, you’ll officially own the home! Make sure to change the locks, set up utilities, and begin moving in. Your Elite Realty Group agent is available to help with any post-closing questions.