Northern KY Home Buying FAQs
Frequently Asked Home Buying Questions
1. Where Should I Start the Process?
- Organize and review your finances. Set a budget and figure out what you will be able to afford for a down payment. Use our handy mortgage calculator to see what a monthly mortgage payment might look like for you.
- Start researching the many communities in and around Northern KY to see which might be best for you.
- If you're a first-time buyer, start to get more information on the types of mortgages available.
2. How Do I Know What to Look for in a Home?
- Take some time to decide what's important to you - proximity to amenities, school districts, yard sizes, noise, commute, highway access. This will help you find a neighborhood.
- Review home features you might want and those you'll need, from size to style to overall condition. Having a good idea of what you're looking for will save you time and tours of homes that don't meet your criteria.
- Browse our Northern KY featured listings, or start searching homes by amenities and features.
3. Find a good Realtor
- A good Realtor can guide you through the financial and legal complexities of the Northern KY home buying process.
- A local Realtor will be a Northern KY expert and can provide vital insight during your home buying journey.
- A Realtor can help you craft the right offer and guide you through negotiations.
- A Realtor will answer all your questions and guide you through the complicated paperwork.
4. Where and How Can I Get a Loan?
- Mortgage loans are typically available through banks, credit unions, private mortgage companies, and government state lenders.
- Your Realtor is a good source for finding good lenders because they deal with lenders everyday and know which ones are exceptional.
- You can also shop for lenders on your own, making sure you take some time to search around and compare rates. Calling local government agencies can also be a good idea to find out more about programs that might be available to you.
5. What if I Have No Down Payment?
- You might qualify for a federal mortgage program or local home buying assistance program.
- The Federal Housing Administration (FHA) helps home buyers by offering insured loans. This means that if the buyer defaults, the lender will still get their money. Insured loans encourage lenders to work with more buyers, however certain loan guidelines must always be followed.
- Many state and local governments offer additional programs for buyers who meet various criteria or are buying within individual communities.
- The Department of Housing and Urban Development (HUD) also offers many assistance programs to home buyers.
- USDA loans are available with no money down, but you must meet their loan requirements.
- Kentucky Housing Corporation loans provide money that can be used for closing costs and/or down payment money, but you must meet their loan requirements.
- Speak with a good lender to see if you qualify for any down payment assistance.
6. Once I Find My Home, What Costs will I Have to Pay?
- Earnest money: This is the "security deposit" you pay when you submit your offer to prove to the seller that you are serious. After your offer is accepted, it is applied to your down payment or closing costs.
- Home inspections: The buyer is responsible for all fees associated with the inspections they wish to perform.
- Down Payment: This is a percentage of the cost of your home. The amount will depend on our loan. Government programs can help you decrease this amount. Your final down payment would be due at closing.
- Closing Costs: These are the fees associated with paperwork and lender charges, all due at closing.
- Pre-paids: These involve costs associated with anything this is required to be pre-paid upfront, including one year's worth of home owner's insurance which is always paid upfront with any new purchase you make, whether it is your first home or your 5th.
- Escrows: Escrows are reserves that are set up for your first tax bill, depending on what month you actually close.
- Utilities: Buyers will transfer the utilities into their name for the day of closing.
- HOA Fees: If the HOA fee has already been paid up front for the month by the seller, then the buyer owes that portion of the month which they will legally own the property.
Note that closing costs, pre-paids and escrows can be negotiated to have the seller pay them for the buyer up to a certain amount allowed by the specific loan type. If not successfully negotiated, the buyer is responsible for these costs.
I Still Have Questions!
That's easy! Contact us today and we can answer any of your home buying questions about homes for sale and real estate in Northern KY or its many communities.
Want more information? Learn more about buying a home in Northern KY!