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  • About
    • All About Theory
    • Meet the Team
    • Theory Companies
    • Theory Cares
    • Fill The Barrel
    • Blog
  • Buy
    • Buy With Theory
    • 2023 Homebuyer Guide
    • Home Buyer Bus Tour
    • Your Guide to the PNW
    • Featured Listings
    • Home Search
    • Sign In
  • Sell
    • Sell With Theory
    • Free Home Estimate
    • 1 Hour Cash Offer
    • Sold By Theory
  • Invest
  • Construction
  • Property Management
  • Careers
  • Contact

First-Time Homebuyer FAQ’s

Buying a home is one of the most important decisions of your life – especially buying your first home. Is the homebuying process a bit overwhelming and confusing to you? You’re not alone! Below we’ve answered some of the most frequently asked questions that we receive from first-time homebuyers.

1. Should I buy a home or continue to rent?

If your situation allows, buying a home is the way to go. When you rent, the money that you spend every month goes straight to your landlord, and you will never see that money again. If you pay $1,000 every month for rent, and you rent for 30 years, you’re basically throwing away $360,000. If you buy a home, on the other hand, your monthly payment will most likely be cheaper than your rent would be (interest rates are extremely low right now), and you would be building equity in your home. Win-win! Not only will you have your home paid off in 30 years, but your home will also be worth WAY more than it’s worth now, as real estate increases at a rate of about 5% every year.

2. How much money does it really cost to buy a home?

There are FHA & Conventional loan programs that are designed to get buyers into homes for as little as a $0 down payment. More commonly, FHA buyers are required to put 3.5% down. “Conventional” buyers typically put 5% down. VA loans are great and require 0 down. When you buy a home, you can also expect to pay up to 3% in closing costs.

3. Can I really get a home loan with bad credit and no money for a down payment?

There are 0-down loan programs that will allow you to have a credit score in the low-600’s. If your credit score is below that, there are companies that are great at credit repair and can help you put a plan in place to hopefully qualify for a home loan within a few months. When it comes to credit repair, the resounding advice you will hear from lenders is: “stick with it!” Your credit score probably won’t shoot up to 700+ overnight, but once it does, you’ll be glad you stuck it out!

4. What are closing costs?

Closing costs are expenses that are associated with buying a home. Some of these fees include: loan origination fee, appraisal fee, pre-paid interest, property taxes, homeowners insurance, and title/escrow fees. They usually run 2.5% – 3% of the sales price. The good news for you is that it is very common that a seller will pay for a buyer’s closing costs. This is part of the negotiations, which your real estate agent will guide you through.

5. Does a real estate agent cost me anything? How do I find a GREAT one?

There are many ways to find a great agent. The way that most people find a real estate agent is through a referral. If you hear that your best friend had a great experience working with Theory Real Estate, and that friend raves about their experience, you should consider taking their advice and at least interviewing their agent. A GREAT real estate agent will have a very good sense of the market, make educated recommendations about your offer, and answer any questions you have throughout the process.

As a buyer, your real estate agent does not cost you a penny. The seller typically pays both real estate agents’ commissions. Lots of buyers insist that they do not want to work with a real estate agent. Those buyers will drive by a “for sale” sign, call the listing agent, and make an offer directly through them. The problem with this scenario is that the listing agent for a property works for the SELLER. It is their job to put as much money as possible in the seller’s pocket. You don’t want that; you want somebody that is representing YOU.

6. Why does my real estate agent insist that I talk to a lender before looking at homes?

The real estate market is very competitive right now. What this means is that when a house is listed, the seller often receives multiple offers within 24-48 hours. If you love the house, and if you REALLY want it, you’ll want to make an offer right away. BUT, if you have not talked with a lender, and if you do not have a pre-approval letter, you are not able to make an offer.  A listing agent (most of the time) will not submit an offer to the seller if it is not accompanied with a pre-approval letter. If you talk with a lender and get your pre-approval before you start looking at houses, you won’t have this problem!

7. How do I find a GREAT lender?

Like when you are looking for a real estate agent, the most common way that people will gravitate towards a lender is if they are referred. Your real estate agent will have a great list of lenders that he/she has worked with, so check with him/her if you haven’t had another lender recommended to you. A GREAT lender is someone who will get back to you right away and answer any question you may have about the process!

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“I think that’s the easiest it’s ever been for me to buy or sell a home!”

Brad Rasmussen -

“

We had a distressed property in Tacoma that required a lot of repair before we could sell. The task soon became overwhelming and that’s when we contacted Theory Real Estate.  They purchased the property “as is”. Within 3 weeks,  we closed on the deal. The Theory team is amazing!!  Every person we came in contact with was friendly, professional and efficient.

John and Diane Simchuk -

“

We are new investors to this market. We met Isaac and Alan through a good friend, and we are so thankful to have met them. They are the nicest, caring, most professional, kind-hearted people we have met in a long time. We would recommend these guys to ANYONE.

Anthony & Sarah Wooden - Tacoma

“

We have bought 2 homes and sold 1 home with Theory. We would recommend them to all our friends.

Rhonda & Rickey Wilks - Buckley

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We worked with Theory to find our perfect house, but ran into a couple obstacles with the seller. The Theory team was always there with answers and went above and beyond all of our expectations.

Ceirra & Kenny Williams - Spanaway

LET'S GET SOCIAL

THIS Saturday!! The path to becoming a homeowner s THIS Saturday!! The path to becoming a homeowner starts with getting WSHFC Certified for Down Payment Assistance & learning EVERYTHING you need to know about how to turn your dreams into a reality 💡Our very own Nickie Robbs along with Katie Arnold from Evergreen Home Loans will be your experts for the day as they answer questions, clarify myths, & provide the roadmap you need 😎Snacks will be provided, and the class will be held IN PERSON from 10AM - 4PM! Successful completion earns you official WSHFC Certification for Down Payment Assistance Programs in WA State 🏡 💰If you'd like to attend, please email karnold@evergreenhomeloans.com!📍 217 N Meridian, Puyallup (next to Meridian Cafe and Trackside Pizza, parking is in the back)
🗓 Saturday, May 27th
⏰ 10AM - 4PM
Happy Birthday to Jessica Helms, our Assistant Pro Happy Birthday to Jessica Helms, our Assistant Property Manager with Love My Space! She's been with us for the last 6 months and has been a truly wonderful person to have around. She gets stuff done and has become an invaluable member of the team! Happy Birthday Jessica, we hope you have an amazing day 🥳 🧁
Started the week off right yesterday with a class Started the week off right yesterday with a class from our CFO Erik about personal finance! He talked all about how to set up yourself and your family for a less financially stressful life, from now through retirement. We're always looking for ways like this to help bring extra value to our Team on a regular basis 😎The biggest takeaway from the class? Every great budget starts with a specific, well thought out system. And if you're curious to learn more about how to make THAT happen, you might just have to join our team and come to the next one 😉
Today we're celebrating the birthday of the one-an Today we're celebrating the birthday of the one-and-only Madison "Two Hands" Magruder! Mads has been around since just about the beginning, and was an integral part of the company throughout its early years. We're blessed to have her hang her RE license with us still, and we wish her the best possible day 🙌🥳💃
Happy Birthday, Rizwan! 🎂 We hope you have the Happy Birthday, Rizwan! 🎂 We hope you have the most special day!!
If I were you, I wouldn't pass on this charming Cr If I were you, I wouldn't pass on this charming Craftsman home in Aberdeen with an unmatchable value that you won’t find at this price!!📍 2215 Cherry St
💰 $345,000
👣 1,743
🛏 4
🛁 1.75This beauty features a HEATED 720SQFT SHOP WITH LOFT along with an attached 2-car garage & NEW ELECTRIC PANEL! On the main floor you will find the large Primary BR w/ slider to the back deck – as well as an additional BR, Bath and den/office space. 2 Beds & 1 Bath upstairs. Truly one of a kind, displaying handcrafted woodwork throughout: revitalized fir floors, redwood & old-age cedar counter tops, knotty pine ceilings, exposed post and beam, and custom fencing surrounding the property for added privacy. Driveway/street parking in front, alley access with SECURE GATED ENTRY, RV parking; enough for 6+ vehicles in back! Immaculate landscaping with back deck/patio.
RUN! Dont Walk to take a look at this stunner in p RUN! Dont Walk to take a look at this stunner in person!📍 5024 84th Avenue W
💰 $690,000
👣 2,206 sqft
🛏 4
🛁 3Welcome to this stunning mid-century modern home ideally situated on a serene dead-end street in desirable University Place! With 4 beds, 2.5 baths, multiple living spaces each with a fireplace, fenced back yard, front courtyard, and a 2-car garage, it's really easy to just come home and relax! The open kitchen seamlessly blends with the dining space, creating an inviting atmosphere & the primary bedroom is large & offers an en suite! Don't forget about the AC keeping you cool this summer! The location of this home in UP is highly desirable, offering a peaceful neighborhood ambience while being just moments away from urban conveniences. Nearby, you'll find great schools, trendy shops, delicious restaurants, and picturesque parks!
Incredibly inspiring night with Mike Smith! What w Incredibly inspiring night with Mike Smith! What was your favorite takeaway from this month's Tacoma Connect? 👇

Office

5413 South Tacoma Way
Tacoma, WA 98409

Phone

253-537-HOME

Email

hello@theoryRE.com

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