Home Buying FAQs: Answers to Your Biggest Questions

Buying a home is one of the most exciting — and sometimes overwhelming — milestones in life. Whether you’re a first-time buyer or moving into your next home, it’s natural to have questions. To help, we’ve gathered some of the most common questions buyers ask and broke them down into clear, straightforward answers.

1. What’s the difference between pre-approval and pre-qualification?

Both are important first steps in the mortgage process, but they’re not the same.

• Pre-qualification is a quick snapshot based on the information you provide about your income, assets and debts. It gives you an idea of what you might qualify for, but it isn’t verified.

• Pre-approval is more detailed. A lender reviews your credit, income and financial documents to give you a conditional commitment for a loan. Sellers take pre-approval more seriously since it shows you’re financially ready to buy.

2. Can I buy a home if I already own one?

Yes! Many people buy a new home while still owning their current one. You have a few options:

• Sell first, then buy (the most straightforward path).

• Buy first, then sell (you may need to qualify for both mortgages or use savings).

• Use a bridge loan or home equity from your current property to help with the purchase.A trusted real estate agent and lender can help you decide which path is best for your financial situation and timeline.

3. How do interest rates affect my buying power?

Interest rates play a big role in how much home you can afford. When rates are lower, your monthly mortgage payment is lower, meaning you can qualify for a higher purchase price. When rates rise, the opposite happens — the same loan amount comes with a higher monthly cost. Even a small change in rates can make a noticeable difference in your budget.

4. What if the appraisal comes in lower than my offer?

If the home appraises for less than your offer, the lender will only finance up to the appraised value — not your purchase price. But don’t panic! You have options:

• Renegotiate with the seller to lower the price.

• Pay the difference in cash if you’re able.

• Challenge the appraisal if you believe errors were made. Your agent will help guide you through the best strategy to keep your home purchase on track.

Final Thoughts

The home buying process can feel complex, but you don’t have to go through it alone. Having a knowledgeable real estate team by your side makes all the difference. If you’re thinking about buying in the Kalamazoo, Portage, or greater Southwest Michigan area, our team is here to answer your questions and guide you every step of the way.

📲 Ready to take the next step? Reach out today — we’d love to help you find your perfect home!