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Top Questions I Have About Buying A Home in Louisville

Should I buy a house instead of rent?

This is something you will have to answer for yourself. There are benefits to both, but renting will cost you more in the long run. You’ll have to examine your needs and lifestyle and determine if buying is right for you. The benefits of buying a home instead renting are capital gains, security, tax breaks, equity, freedom and appreciation in value.

What does it mean to be pre-approved me in home buying?

You need to know how much you can borrow to buy a home (unless you pay in cash). This helps you not waste time looking at homes you can’t afford. The loan estimate from your lender will also show you how much will be required of you for a down payment and closing costs. Being pre-approved means you know what is required of you, financially to purchase a home.  In most cases, realtors require you to be pre-approved before showing homes to you, so this is the first step in the buying process.

How will I know how much money I can spend on a home?

The lender you choose will be able to answer this question for you.

What is a downpayment and how much money do I have to put down before I can purchase a house?

A downpayment is the amount ; the amount depends on your loan type but it’s usually 3%-5% of the purchase price.

What is a mortgage for a home?

A mortgage is a loan you take out to pay for a home. In comparison, it’s like taking out student loans to attend a university. As a buyer, you enter an agreement with a lender (usually a bank or other entity) where you receive cash upfront then you make set payments over a set time with interest.

Does my credit score impact my ability to buy a home?

Yes. Most states recommend a credit score of 620 or higher to purchase a home. The higher the credit score, the better lending terms offered. This can be ever-changing however, so it’s best to ask a loan officer.

How long does the home buying process take?

There is no set amount of time for the home buying process, but in most cases it’s 30-45 days.

How will I know if it’s the right time to buy a home?

There are many factors that go into the decision of buying a home. Interest rates, seller’s or buyer’s market, your financially stability among many other things will determine if it’s the right time to buy a home. You will have to look at all factors and make a decision then. Only you can make the decision to buy a home!

How much do I have to pay a realtor to help me find a home in Louisville?

Most likely, nothing. In most cases, the buyer doesn’t pay the realtor anything, the sellers do. The sellers usually pay their realtor fees and then the listing agent pays the buyer agent.

Should I sell my home before I buy a new one?

It would be wise to sell your home before purchasing a new one. The agent you use will most likely be able to help you in both areas. The built up equity in your home will be applied to the down payment on your new home, so it would be beneficial to sell it.

What is earnest money?

Earnest money is pretty much saying you are a serious buyer and demonstrating good faith. When you make an offer on a home, your agent will ask for a check from you. This check is usually 1-2% of the purchase price. The check is deposited into an escrow account for safekeeping. The earnest money check is basically asking the seller to take the home off the market. If the offer is accepted, the earnest money is then applied to the downpayment and closing costs. If the deal ends up falling through, then the earnest money is returned to the buyer. It is good to note that if the buyer backs out of the deal the earnest money may not be returned to the buyer. Ask your agent for ways you can protect your earnest money in the event you back out of a contract.

What if my offer on a home is rejected?

If your offer is rejected, usually the sellers send a counteroffer. If sellers send a counteroffer, this means you’re still in the game and you along with your agent need to decide if the counteroffer works for you. Buyers and sellers can go back and forth often with counteroffers as this is part of the negotiating process. Just make sure your agent keeps you in the loop through all negotiations.

Do I order the home inspection when purchasing a home?

In most cases, a home inspection is required- especially if you’re using FHA or VA loans. Home inspections are recommended because they can reveal problems in the home that aren’t easily detected by non home inspectors. You can order the home inspection, or your realtor can.

How do I know which mortgage lender to use when buying a home?

Your realtor should know of several exceptional loan officers. You should reach out to them, or you can Google and find the lenders with the best reviews.

What other fees are there in buying a home, besides the downpayment?

Lending fees, home inspections, radon, closing costs and other additional services you’d like to check out the home you’re purchasing.

When can I move into my home after purchasing it?

In most cases, you receive your keys at closing and are able to move in immediately. A typical closing lasts about an hour. If you’re wanting to move in asap with no hiccups, it’s best you make sure to coordinate and get them on the same day as closing.

What loans can I get to help in me in my home buying process?

There are many loans offered to help offset housing payments. There are VA loans, USDA loans and FHA loans to name a few. The state of Kentucky has also been shown to offer first time home buyer loans. A qualified lender is the best resource to know what loans are offered to you!


Ready to buy? Take a look at our updated list of current homes on the market HERE!

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