FAQs
Read most frequent questions
What the first step of the home buying process?
The first step is a strategic, confidential consultation with a Homeion advisor to understand your goals. This foundational conversation ensures a precise and efficient search from the start.
This initial step covers:
Your Vision: We discuss your specific needs, lifestyle, and long-term goals to understand what defines a legacy asset for you.
Financial Clarity: We establish a clear budget, including all associated costs like legal fees and stamp duty, to ensure a focused search.
Strategic Insights: Our advisors provide a high-level overview of the market, including exclusive neighborhoods and off-market opportunities that match your criteria.
How long does it take to buy a home?
The home buying process in Nairobi typically takes between 60 to 90 days from the time you sign the sales agreement to the completion of the transaction. This timeline can be influenced by several factors, including whether the property is ready for occupation or an off-plan purchase, the speed of due diligence, and the efficiency of the legal and land registry processes. Our advisors and legal partners work to manage this timeline effectively to ensure a smooth and timely closing.
What is a seller’s market?
A seller’s market occurs when there are more interested buyers than there are available properties for sale. This creates a competitive environment where sellers have the advantage, leading to higher prices, quicker sales, and often multiple offers on a single property.
What kind of credit score do I need to buy a home?
The credit score required to buy a home can vary depending on the type of loan you are seeking. While some conventional loans may require a minimum credit score of 620, other government-backed loans, like an FHA loan, might allow for a score as low as 500 with a larger down payment.
It is important to note that a higher credit score can make the home buying process easier and often qualifies you for a lower interest rate, which can save you a significant amount of money over the life of the loan. Most lenders consider a score of 670 or higher to be “good.”
How much do I need for a down payment?
The amount needed for a down payment varies greatly depending on the type of loan and your financial situation. While a 20% down payment is often recommended to avoid Private Mortgage Insurance (PMI) on conventional loans, it is not always a requirement.
Here’s a general breakdown by loan type:
Conventional Loans: Down payments can be as low as 3% for first-time homebuyers, though many lenders prefer a minimum of 5%.
FHA Loans: The minimum down payment is 3.5% if your credit score is 580 or higher. For credit scores between 500 and 579, a 10% down payment is typically required.
VA and USDA Loans: For eligible borrowers, these government-backed loans can allow for a 0% down payment.
A larger down payment generally results in a smaller loan amount, lower monthly payments, and less interest paid over the life of the loan.
What is earnest money?
Earnest money, also known as a “good faith deposit,” is a sum of money a buyer offers to a seller to demonstrate their serious intent to purchase a property. This deposit shows the buyer’s commitment and gives the seller confidence to take the property off the market while the transaction moves forward.
The amount is typically between 1% to 3% of the sale price and is held in a third-party escrow account until the deal is finalized. If the transaction is successful, the earnest money is usually applied toward the buyer’s down payment and closing costs. If the deal falls through due to a reason not covered by a contingency in the contract, the buyer may forfeit the earnest money to the seller.
