Buying a Home

How much down payment do I need?

While 20% is traditional, many loan programs accept less:

  • Conventional loans: 3-5% minimum
  • FHA loans: 3.5% minimum
  • VA loans: 0% for eligible veterans
  • USDA loans: 0% in eligible rural areas

What credit score do I need to buy a home?

Minimum scores vary by loan type:

  • Conventional: 620+
  • FHA: 580+ (3.5% down) or 500+ (10% down)
  • VA: No minimum (but lenders typically want 620+)

How long does it take to buy a house?

From offer acceptance to closing typically takes 30-45 days. The entire process, including house hunting, can take 3-6 months or longer.

Selling a Home

When is the best time to sell?

Spring (April-June) traditionally sees the most buyer activity, but local market conditions matter more than timing. Consult with a local agent.

Should I make repairs before selling?

Focus on repairs that affect safety, functionality, or first impressions. Major renovations rarely provide 100% ROI. Discuss with your agent.

Financing

What's the difference between APR and interest rate?

The interest rate is the cost of borrowing the principal. APR includes the interest rate plus fees and other costs, giving a more complete picture of loan cost.

Should I choose a fixed or adjustable rate mortgage?

Fixed rates provide payment stability. ARMs offer lower initial rates but can increase. Choose fixed if you plan to stay long-term; ARM if you'll move within 5-7 years.

What is PMI?

Private Mortgage Insurance protects the lender if you default. Required when down payment is less than 20%. Can be removed once you reach 20% equity.

Closing

What is title insurance?

Title insurance protects against claims on the property's ownership history (liens, errors, fraud). Lender's policy is required; owner's policy is optional but recommended.

Why do I need an attorney?

In NJ and NY, attorneys review contracts, perform title searches, and ensure a smooth closing. They protect your interests throughout the transaction.

Can I negotiate closing costs?

Some costs are negotiable. You can ask the seller for credits, shop for title insurance, and compare lender fees. Your agent can advise on negotiation strategies.