by Rebecca Bingham
Happy New Year!
I'm here and queer with some questions that are frequently asked in my Fetlife inbox!
Is 20% down still the rule of thumb?
It sure isn't! From VA loans that are 0% down to FHA loans with around 3% down (and TONS of down payment assistance programs), there's a lot more to think about. Even if you've bought a home previously, or held title previously, you still might qualify as a first-time home buyer! If you haven't owned/held title in three years, it's a reset!
What is the difference between prequalified and preapproved?
Preapproved is when you speak with a lender and start getting ready; they might have pulled your credit, but it's basically a letter saying, "at first glance, they can qualify for a mortgage." Prequalified means you're already done with the mortgage application, it's been through underwriting, and you get a letter that says the top amount of the loan you qualify for at this minute is XXX amount. This means we're ready to write an offer and it will be more solid!
Do I have to sign a buyer’s agency agreement?
The short answer is yes. The long answer is that there are lawsuits about it. In the state of Washington, a buyer must sign a buyer’s agency agreement that says how much compensation is owed to the agent upon closing, and that that agent is working in YOUR best interest. We have a fiduciary duty to the party who we have a contract with. So, for listing agents, it's with the sellers per the listing contract, and buyer’s agents are bound to the buyers per the buyer's agency agreement.
Happy 2023 to you and yours! Contact me if you have any real estate needs, questions, or referrals, and send me any home-related questions for next month’s column via DM on Fetlife or Facebook. (I’ll keep it confidential, of course!)