FAQ
Am I Ready to Be a Homeowner?
You’re ready to be a homeowner when you have stable finances, savings for upfront costs, and can manage ongoing expenses. It also means being prepared for the responsibilities of maintaining and caring for your home.
Is Renting or Buying Better?
It depends on your lifestyle, finances, and long‑term goals. Renting offers flexibility and lower upfront costs, while buying builds equity and provides stability. The best choice is the one that aligns with your current needs and future plans..
What Is the Lender’s Formula?
The lender’s formula is the standard calculation used to determine your monthly mortgage payment, based on the loan amount, interest rate, and length of the loan.
📌 Explanation
When you take out a mortgage, lenders don’t guess your payment—they use a fixed mathematical formula. The most common version is:
M=P×r(1+r)n(1+r)n−1
Where:
- M = Monthly mortgage payment
- P = Loan principal (the amount borrowed)
- r = Monthly interest rate (annual rate ÷ 12)
- n = Total number of payments (loan term × 12 for monthly payments)
This formula ensures that each payment covers both interest and a portion of the principal, gradually reducing the loan balance over time (amortization).
What Do I Look for in Homes?
Focus on what truly fits your lifestyle and long‑term goals. Consider location, budget, size, and layout, along with essentials like safety, neighborhood amenities, and future resale value. Most importantly, choose a home that feels right for you and supports the life you want to build.
Do I Need a Home Warranty?
A home warranty isn’t required, but it can provide peace of mind. It helps cover the cost of repairing or replacing major systems and appliances, protecting you from unexpected expenses after you move in..
What Should I Expect at Closing?
Closing is the final step in your home purchase where all documents are signed, funds are transferred, and ownership officially changes hands. You can expect to review paperwork, pay closing costs, and receive the keys to your new home..
What Is Pre-approval?
Pre‑approval is a lender’s confirmation of how much you may qualify to borrow for a home. It’s based on reviewing your finances—like income, credit, and debt—and gives you a clear budget and stronger position when making offers..
Am I Ready to Rent?
You’re ready to rent if you have steady income, can cover monthly rent and utilities, and are prepared for upfront costs like deposits. Renting also means being comfortable with less permanence but enjoying flexibility and convenience..
What Should I Offer?
Your offer should reflect the home’s market value, your budget, and current competition. Work with your Realtor to balance a fair price with smart strategy, ensuring your offer stands out while protecting your interests..
Can I Ask You for Advice?
Absolutely—you can always ask for guidance throughout the buying or renting process. Your Realtor is here to provide honest, professional advice so you feel confident in every decision..