Important Ins and Outs
By : Mari Takeshita
Do I need 20% down? For a primary residence, you only need 3.5% down for an FHA loan, 5% down for a conventional loan, and $1,000 down for a CHFA loan. VA loans don’t require any money down.
Who pays my real estate agent? The seller pays for both real estate agents – the agent representing the seller and the agent representing the buyer.
Is the earnest money in addition to the down payment? NO – the earnest money is subtracted from the down payment at closing.
Is the inspection the same thing as the appraisal? The inspection is to determine what kind of shape the house is in, and the appraisal is to determine the value of the house. The buyer orders the inspection and the lender orders the appraisal.
If the house doesn’t appraise for the sales price, do I still have to buy the house? No. You can either pay the difference between the sales price and the lower appraised value in cash (not the smartest thing to do because the house isn’t worth it), you can walk away from the deal entirely and get your earnest money back, or the seller can lower the sales price to the appraised value of the home.
Cell – 303.941.MARI (6274)
Fax – 720.208.0215
Cherry Creek Properties, LLC