Frequently Asked Questions

Yes, a home can depreciate in value, though it depends on several factors. While real estate typically appreciates over time, meaning it gains value, depreciation can occur due to:

1. Location decline – Neighborhoods can become less desirable due to crime, poor infrastructure, or economic downturns.

2. Physical deterioration – If the home isn’t maintained properly (e.g., roofing issues, plumbing problems, or outdated systems), it may lose value.

3. Market conditions – During housing market downturns or recessions, property values can fall.

4. Oversupply – If too many similar homes are available in an area, prices can drop.

5. Environmental or zoning changes – Nearby developments, pollution, or changes in zoning laws can negatively affect property value.

An older home can be just as good a value as a new home, but it depends on several factors:

✅ Advantages of Older Homes:

• Lower purchase price – Typically less expensive per square foot than new homes.

• Established neighborhoods – Often in central or desirable locations with mature landscaping and a sense of community.

• Quality craftsmanship – Many older homes were built with materials and techniques that are more durable than what’s used today.

• Character and charm – Architectural details and unique layouts are often more distinctive.

⚠️ Potential Drawbacks:

• Maintenance and repairs – May require updates to plumbing, electrical, roofing, or HVAC systems.

• Energy efficiency – Older homes can be less energy-efficient unless retrofitted.

• Layout and features – Might lack modern open-plan designs, large closets, or smart home tech.

🔄 New Homes:

• Modern layouts, updated systems, energy-efficient appliances, and fewer immediate repairs.

• But typically more expensive and located in newer, less-developed areas.

In short, an older home can offer better value for money if it’s been well-maintained or renovated. But if you’re looking for convenience and minimal upkeep, a newer home might be a safer bet.

A broker is a licensed professional who acts as an intermediary between buyers and sellers in a transaction, typically for a commission. In real estate, a real estate broker helps clients buy, sell, or rent properties.

In Real Estate:

• A broker can own a brokerage firm and supervise agents.

• They can perform all the duties of a real estate agent and more, such as managing transactions, negotiating contracts, and ensuring legal compliance.

• Brokers usually have more training and certification than real estate agents.

Types of Brokers (Real Estate):

• Listing broker – Works with the seller to list and market the property.

• Buyer’s broker – Represents the buyer in finding and purchasing a property.

• Dual broker – Sometimes represents both buyer and seller (depending on state laws).

Yes, you can pay your own property taxes and homeowners insurance, but whether you must or may depends on your mortgage arrangement.

✅ You can pay them yourself if:

• You own your home outright (no mortgage).

• Your mortgage lender allows it — some lenders let you waive an escrow account if you meet certain conditions (e.g., large down payment, good credit).

⚠️ You must pay them through your lender if:

• Your mortgage includes an escrow account (common for conventional loans with <20% down, FHA, or VA loans).

• Lenders use escrow to ensure taxes and insurance are paid on time, protecting their investment.

Pros of Paying Yourself:

• More control over your money.

• Potential to earn interest by holding funds longer.

Cons:

• Requires discipline — missing a tax or insurance payment could lead to penalties or coverage lapses.

• Lenders may charge a fee or even deny the option without strong financial credentials.

The loan process typically takes 30 to 45 days, but it can vary depending on the lender, loan type, and how quickly you provide documentation.

🕒 Typical Timeline Breakdown:

1. Pre-approval – 1 to 3 days (can be longer if income/assets are complex).

2. Loan application – 1 day (after you’ve chosen a home).

3. Processing – 1 to 2 weeks (includes document collection and verification).

4. Appraisal & inspection – 1 to 2 weeks (depends on scheduling and availability).

5. Underwriting – 1 to 2 weeks (where your loan is evaluated for risk).

6. Closing – 3 to 7 days (you sign final papers and the loan is funded).

⚠️ Delays can happen due to:

• Incomplete paperwork

• Low appraisals

• Credit issues

• Unresponsive third parties (like employers or appraisers)

To speed things up, it helps to be prompt with documents and work with a responsive lender.