One of the happiest moments in a person’s life is when they manage to buy a home. However, the process is challenging, and lots of paperwork is involved, which is quite tiresome. Below are answers to ten commonly asked questions by Maryland home buyers.
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1. What is the required credit score to buy a house in Maryland?
The credit score required is the most commonly asked question by most of the home buyers in Maryland. The minimum credit score required by most financial experts is 620. You will, however, get better lending terms, including your rate and down payment if you have a good credit score of 700 or more.
Today's Maryland Mortgage Rates
30 Yr. Fixed
7.125%
APR 7.638%
15 Yr. Fixed
6.500%
APR 6.988%
30 Yr. Fixed FHA
6.500%
APR 7.479%
30 Yr. Fixed VA
6.500%
APR 6.950%
2. What is the required down-payment in Maryland?
Most of the down payments required range from 3% to 5% of the purchase amount needed. Putting a down payment of 20% of the purchase price can help reduce your monthly payment by eliminating the need for private mortgage insurance. There are different mortgage programs that have different down payment requirements. The best way to see what you would have to put down, talk to a licensed mortgage professional.
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3. Are there any available special mortgage programs in Maryland?
If you manage to meet some set requirements, you will easily access special mortgage programs that will lower your down payment amounts and get financing with low rates. The best way to know what is available in your particular area or the area you plan to buy in, talk to a licensed mortgage professional. They will be able to tell you exactly what is available to you based on your unique situation.
4. What are some other costs beyond the down payment?
Most Maryland home buyers rarely ask this question despite its importance. Some other fees and costs are required apart from the large sum of down payment costs required. A good example is the application/administration fee charged by most money lenders, approximately 2%-4%.
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5. What is the role of a Realtor?
A realtor plays an important role when it comes to buying a house. They will guide you through the whole complex and confusing process. The agent is also responsible for taking you through filling contract forms and understanding the jargon used. With a good agent, the process will be smooth, easy and you will save lots of time.
6. Can I buy a new home and at the same time sell their old one?
This question is usually asked too late by most Maryland home buyers. But yes, a homeowner can sell their home and buy a new one at the same time. However, you should be fully aware that the process is not a leisurely walk in the park. A lot will be required from you. Contracts will have to be signed, forms filled, and money is involved.
7. Is a home inspection necessary in Maryland?
It is always advisable to inspect the house you intend to buy before paying the amount required, even if it isn’t a requirement. After the inspection, you will be able to estimate the amount required depending on the situation of the house, levels of repairs needed, and other factors. The assessment will also be crucial during the negotiating process.
8. How long does closing take in Maryland?
The closing period ranges from 30 days to 45 working days on average, but we have closed loans in as little as 17 days depending on the particular situation of our client. If there are challenges during the process, the closing period may take longer. Have a schedule of points of action required to remain on track and avoid wasting time in the process.
9. Can a home-buyer back out of the buying plan?
Most home-buyers in Maryland avoid asking this question for fear of not looking serious and losing the chance. There are several factors and ramifications under which a homebuyer can choose to back out of a deal. Under certain conditions, some amount of money may be deducted, but in others, you will get a full refund. Carefully go through the terms and conditions before accepting or denying.
10. When will the house keys be handed over?
If everything goes as expected and well, your new house keys will be delivered at closing. In a scenario where the lender will demand the loan to be funded, you will have to wait till then to have the house keys.
By going through the above article, you will find answers to most of the questions asked by Maryland homebuyers. The solutions will also help you avoid common mistakes made by first-time homebuyers, which are costly and time-wasting.
Give us a call or click below to fill out a quick quote and let us help you make the right decision as you decide to buy a home. Our team of experts will walk with you through the journey and ensure you enjoy the process of purchasing a home.
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