HELP TOPIC

The approval process Homeward Cash Offers Pricing and fees Buying a home Selling a home

HELP TOPIC

The approval process Homeward Cash Offers Pricing and fees Buying a home Selling a home

Homebuyer FAQs

Here are the answers to the questions we hear most often from homebuyers.

The APPROVAL PROCESS

How long does it take to get approved to use Homeward?

Our standard approval turnaround time is two days. During peak homebuying seasons (spring and early summer), approval times can extend to 10 days. We encourage you to start today.

This process usually requires some back and forth. Please monitor your voicemail and email (including your spam folder). We often have follow-up questions, and the faster you respond, the sooner we can approve you.

If you’re interested in making a Homeward Offer, we suggest you get approved as soon as possible. That way, you’re ready to make an offer as soon as the home you want comes on the market.

I understand you do a credit pull. Can you tell me more about that?

We do a soft credit pull as part of the Homeward approval process. (You may notice that the application says it is a hard credit pull. Unfortunately, we cannot modify this language, which comes from a third-party partner.) You must have a credit score of at least 640 to use our services.

Homeward Mortgage does a hard credit pull if you eventually decide to use them to finance your home loan.

What information do I need to provide to get approved to make a Homeward Cash Offer?

You’ll complete an application that asks about your finances. For this step, we need information about your income, assets, and credit.

If you are using our Buy before you sell service, we also collect information about your current home to calculate how much home equity you have and to provide you with a floor price if you're eligible. You’ll fill out a questionnaire about your home and upload photos of it (we don’t need anything fancy; cell phone photos are fine).

During the approval process, Homeward Mortgage preapproves you for a loan. This does not obligate you to use Homeward Mortgage, but once you’re approved, you have that option.

If I am already preapproved for a mortgage, do I need to go through the approval process with Homeward?

Yes. We approve you to make a Homeward Offer, which is a separate approval. So you will have to complete that approval process with us even if you’re already preapproved for a mortgage with a lender.

Can you help me purchase new construction?

Yes. In addition to the standard information we collect during the approval process, we’ll also need the following:

1. Details about the floor plan and specifications of your new home
2. The home’s price
3. What stage of construction the home is in (percentage of completion)
4. Your proposed closing date

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My current home is already under contract. Can you still help me make a cash offer?

Yes. In addition to the standard information we collect during the approval process, we’ll also need the following:

1. A link to your new home’s listing
2. A copy of your purchase contract

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How do you determine how much equity I have in my home?

Our team of analysts conducts a thorough market value assessment of your home using publicly available real estate data.

What happens after I’m approved with Homeward?

We approve you for a specific amount so you can start shopping and be ready to make an offer as soon as the home you want comes on the market. Then we’ll review that property and work with your agent to make a Homeward Offer.

Homeward cash offers

What is the Homeward Offer and why is it better?

The Homeward Offer removes or reduces contingencies, making your bid more attractive to the seller. Sellers prefer cash and cash-backed offers because they close more smoothly and swiftly.

How do you make money?

We charge a program fee that can often be rolled into the mortgage for your new home. Because the cost of doing business varies from state to state, so does our fee. To learn more about program fees, visit our Pricing page.

Where do you get the cash to buy my new home?

We are backed by large institutional investors that give us access to the funds we use to help make you a cash buyer or help you make an offer backed by cash.

PRICING and FEES

How much does it cost?

You'll pay a program fee to use the Homeward Offer. The program fee differs based on whether you’re selling, buying, or buying and selling.

If Homeward is purchasing your new home on your behalf, you’ll also pay a carrying cost that covers the actual interest cost of Homeward owning your property. Homeward does not make a profit from the carrying cost.

When do I pay the program fee?

There are no upfront costs – you never pay until closing.

If you’re selling to Homeward, you’ll pay the program fee when we purchase the home. It will be deducted from your proceeds.

If you're buying a new home with Homeward, you’ll pay the program fee when you buy the home back from us. In some cases, you can roll the program fee into your mortgage.

Do I have to make an earnest money deposit when I use Homeward?

Yes, if you are buying a new home with Homeward, you will need to make an earnest money deposit (EMD). This deposit represents your good faith to buy the home. It is not a fee. We will apply these funds as a credit to your down payment at closing.

If Homeward is purchasing your new home on your behalf, the following EMD amounts apply.

For homes priced below $1M, we require 2% EMD
For homes priced at $1M or more, we require 4% EMD

If you’re using a Homeward cash backup and closing with traditional financing, our EMD requirement is 1%.

What if I make an offer that doesn't win?

You will not pay a program fee if you make an offer that doesn’t win.

Do you mark up the house price when you sell it back to me?

No. We do not mark up the price of the home. You’ll pay the same purchase price we paid for the home plus your program fee and carrying costs when you buy back your home from us.

Do I have to get my loan from Homeward Mortgage to use your services?

No, you are not required to use Homeward Mortgage, but you get a seller or lender credit at closing when you opt to use our affiliate company as your lender.

How do property taxes work?

You will be responsible for the cost of property taxes for the time we own the home.

Are Homeward Mortgage's rates competitive?

Yes, Homeward Mortgage’s rates are competitive. They even offer a Best Price Guarantee. Visit Homeward Mortgage for details.

Tell me more about carrying costs.

There are a few things you should know about carrying costs.

1. We prorate the carrying costs by day. Carrying costs begins on the day we close on your new home and ends on the day you buy the home back from us.

2. Your carrying cost payment timeline depends on your product. Buy with cash and Buy before you sell clients won’t pay carrying costs until closing. (Note: Certain Buy before you sell clients may defer their payments for up to two months.) In the rare case that cash is evoked with a Backed by cash offer, Backed by cash clients will pay their carrying costs monthly.

3. We don’t mark up carrying costs. You simply reimburses us for the cost of holding the home for you until you finalize your mortgage and buy it back from us.

Will I need to pay a security deposit to rent my new home?

If you are buying with Homeward, you do not need to pay a security deposit to rent your new home.

If you are selling to Homeward, you have the option of a 14-day seller leaseback. There is a leaseback deposit required, which will be returned to you after vacating the home as long as the property remains in good condition.

How does insurance work while I’m renting my new home from Homeward?

Our insurance does not cover your personal property. We highly recommend you get renter’s insurance before you move so that your belongings are covered during the move and while you rent from us. Make sure you understand exactly what your policy covers in case you need to buy additional policies (for example, coverage for floods, big-ticket items, an at-home business, etc.) to fill any coverage gaps.

Are pets allowed while we’re renting the home?

Of course. We know you consider your pets part of the family and they are welcome.

BUYING A HOME

Can I use my own agent?

Yes. Buying a home is one of the biggest financial decisions of your life. We believe you should make it with the help of a real estate professional. And unlike some alternative real estate companies, we don’t assign an agent to you. We encourage you to work with an agent you already know and trust.

Does my agent still make money off the transaction?

Yes. Working with us does not affect your agent’s commission.

What if I need to sell my old home before I can buy back my new home from Homeward?

We created our Buy before you sell service for this exact situation. When you use this service, you can go ahead and move into your new home as soon as we buy it for you (we call this the Homeward Purchase). Then you can get your old home ready to sell, list and sell it, and then use the proceeds to buy back your new home from us (we call this the Customer Purchase).

Is Homeward a mortgage lender?

No, Homeward Inc. is not a financial institution. We are a business entity that purchases homes to secure them for you, our customers, who will eventually buy them back. Our affiliate company, Homeward Mortgage, is a mortgage lender.

Are there benefits to using Homeward Mortgage instead of another mortgage company?

Yes, there are several:

Homeward Mortgage offers a Best Price Guarantee, so you can be sure you’re getting the best deal.
Homeward Inc, Homeward Mortgage, and Homeward Title are affiliated companies so we can offer you a more streamlined experience.

If you use Homeward Mortgage as your lender, you'll receive a credit at closing. To learn more about program fees and credits, visit our Pricing page.

I found a property I want to make an offer on. Now what?

Congratulations! Your agent will submit an offer request so we can review the property and approve your Homeward Offer. We’ll need the property address and offer price. We’ll contact your agent as soon as we approve the offer, typically this takes about four hours.

Who makes the offer to the seller?

You’ll work with your agent to make, negotiate, and finalize the offer with the seller.

How does the appraisal work? Can my client waive the appraisal contingency?

In many circumstances, your client is able to waive the appraisal contingency when they make a Homeward Offer. (This depends on their personal finances and which cash offer service and type of loan they're using.)

Your client will get an appraised value for the home during the option period/due diligence regardless of whether or not they waive the appraisal contingency. This value is based on a desktop appraisal, not a site visit.

Your client's lender will require an appraisal for underwriting purposes. If you're interested in helping your client waive the appraisal contingency when you make an offer, speak with your Customer Experience (CX) Manager.

Who orders the inspection?

As the homebuyer, you are responsible for ordering the inspection.

Why are there two closings with two different contracts when I use Buy before you sell or Buy with cash?

When you make a Homeward Offer using either of these two services, there are two transactions. First, we buy the home for you (we call this the Homeward Purchase). Then, you buy the home from us (we call this the Customer Purchase). There is one contract for each of these transactions.

How fast can you close?

Because we buy homes with cash from our balance sheet, we can close much faster than mortgage-backed offers. This is not only better for you, but more attractive to sellers, which is another reason your cash offer is three times more likely to win than a financed offer.

What happens when Homeward closes on my new home?

You won’t attend the Homeward Purchase closing (when we buy the home for you).

If you use our Buy before you sell or Buy with cash service, your agent will be responsible for getting the keys to your new home to you. You’ll take possession as soon as we close on it. You’ll also set up utilities in your name at this point.

How soon do I have to buy back my new home from Homeward?

When you use our Buy before you sell service, you have six months from the time we close on the home to buy it back from us. When you use our Buy with cash service, you have 30 days from the time we close on the home to buy it back from us. But our goal is the same as yours: to get you into your new home as soon as possible.

On average, our Buy before you sell clients buy back their new home from us in 45 days.

Our Buy with cash clients and Backed by cash clients (in the rare event cash is evoked), who don’t have an existing home to sell, buy it back much faster.

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What does “possession pursuant to leaseback” mean?

Our Customer Purchase contract states that you can take possession of the home as soon as we close on it, which is when your rental period begins (i.e., pursuant to a lease instead of pursuant to closing).

How do you handle the residential service fee in Texas?

In Texas, real estate contracts include a section dedicated to negotiating a credit from the seller to cover a residential service agreement (also known as a home warranty).

If the seller gives us a credit for a residential service fee on the Homeward Purchase contract, we allow you to obtain the policy in your name at the time of the Homeward Purchase closing. So, you will not see a duplicate credit in the Customer Purchase contract.

How do you handle seller credits during the buyback?

As you probably already know, if you use Homeward Mortgage or our preferred lender, you'll receive a credit at closing. We will also pass through any credits we received from the original seller during the Homeward Purchase. These credits are called Interested Party Contributions or IPCs.

Mortgage guidelines regulate how big IPCs can be and how they are applied. Your IPC limit is based on two things:

your loan-to-value (LTV) ratio
your type of occupancy (is this your primary residence, a second home or an investment property?)

Your Loan Advisor will notify you if your IPCs might go over the allowable limit. Then we’ll work with you and your lender to modify your loan and/or lower the sales price of your home to make sure you can take full advantage of all of these credits.

Please note that credits cannot exceed your actual closing costs and cannot be applied to your down payment.

SELLING A HOME

What happens if you buy my home at the floor price?

If we buy your existing home, we’ll put it back on the market and sell it. You’ll pay us the standard 6% agent commission, which we’ll use to cover any real estate agent and title fees.

Will you buy my old home?

We help you buy your new home and enable you to work with your agent to sell your existing home for its full value. We only buy your existing home if you’re using our Buy before you sell service and are unable to sell the on the market within six months and you’re eligible to receive a floor price from us.

What is Floor Price Certainty?

Floor Price Certainty simply refers to our promise to buy your old home from you if you can’t sell it on the market within six months. Most homebuyers who use our Buy before you sell service qualify for this guarantee, but 99% of our clients sell their homes on the market so they never have to rely on Floor Price Certainty.

How do you determine my floor price?

We base your floor price on publicly available real estate data and current photos of your home. Your floor price is typically 90% - 95% of your home’s market value. We also deduct the standard 6% agent commission fees.

HELP TOPIC

The approval process Homeward Cash Offers Pricing and fees Buying a home Selling a home

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Buying a home is one of the biggest financial decisions you'll ever make.
We're here to help.

The APPROVAL PROCESS

How long does it take to get approved to use Homeward?

Our standard approval turnaround time is two days. During peak homebuying seasons (spring and early summer), approval times can extend to 10 days. We encourage you to start today.

If you’re interested in making a Homeward Offer, we suggest you get approved as soon as possible. That way, you’re ready to make an offer as soon as the home you want comes on the market.

What information do I need to provide to get approved to make a Homeward Cash Offer?

You’ll complete an application that asks about your finances. For this step, we need information about your income, assets, and credit.

During the approval process, Homeward Mortgage preapproves you for a loan. This does not obligate you to use Homeward Mortgage, but once you’re approved, you have that option.

If I am already preapproved for a mortgage, do I need to go through the approval process with Homeward?

Can you help me purchase new construction?

Yes. In addition to the standard information we collect during the approval process, we’ll also need the following:

1. Details about the floor plan and specifications of your new home
2. The home’s price
3. What stage of construction the home is in (percentage of completion)
4. Your proposed closing date

‍

My current home is already under contract. Can you still help me make a cash offer?

Yes. In addition to the standard information we collect during the approval process, we’ll also need the following:

1. A link to your new home’s listing
2. A copy of your purchase contract

‍

How do you determine how much equity I have in my home?

Our team of analysts conducts a thorough market value assessment of your home using publicly available real estate data.

What happens after I’m approved with Homeward?

I understand you do a credit pull. Can you tell me more about that?

Homeward Mortgage does a hard credit pull if you eventually decide to use them to finance your home loan.

Homeward cash offers

What is the Homeward Offer and why is it better?

The Homeward Offer removes or reduces contingencies, making your bid more attractive to the seller. Sellers prefer cash and cash-backed offers because they close more smoothly and swiftly.

Where do you get the cash to buy my new home?

We are backed by large institutional investors that give us access to the funds we use to help make you a cash buyer or help you make an offer backed by cash.

How do you make money?

PRICING and FEES

How much does it cost?

You'll pay a program fee to use the Homeward Offer. The program fee differs based on whether you’re selling, buying, or buying and selling.

When do I pay the program fee?

There are no upfront costs – you never pay until closing.

If you’re selling to Homeward, you’ll pay the program fee when we purchase the home. It will be deducted from your proceeds.

If you're buying a new home with Homeward, you’ll pay the program fee when you buy the home back from us. In some cases, you can roll the program fee into your mortgage.

What if I make an offer that doesn't win?

You will not pay a program fee if you make an offer that doesn’t win.

Are Homeward Mortgage's rates competitive?

Yes, Homeward Mortgage’s rates are competitive. They even offer a Best Price Guarantee. Visit Homeward Mortgage for details.

Do I have to get my loan from Homeward Mortgage to use your services?

No, you are not required to use Homeward Mortgage, but you get a seller or lender credit at closing when you opt to use our affiliate company as your lender.

How does insurance work while I’m renting my new home from Homeward?

Will I need to pay a security deposit to rent my new home?

If you are buying with Homeward, you do not need to pay a security deposit to rent your new home.

Are pets allowed while we’re renting the home?

Of course. We know you consider your pets part of the family and they are welcome.

Do you mark up the house price when you sell it back to me?

No. We do not mark up the price of the home. You’ll pay the same purchase price we paid for the home plus your program fee and carrying costs when you buy back your home from us.

Do I have to make an earnest money deposit when I use Homeward?

If Homeward is purchasing your new home on your behalf, the following EMD amounts apply.

For homes priced below $1M, we require 2% EMD
For homes priced at $1M or more, we require 4% EMD

If you’re using a Homeward cash backup and closing with traditional financing, our EMD requirement is 1%.

Tell me more about carrying costs.

There are a few things you should know about carrying costs.

1. We prorate the carrying costs by day. Carrying costs begins on the day we close on your new home and ends on the day you buy the home back from us.

3. We don’t mark up carrying costs. You simply reimburses us for the cost of holding the home for you until you finalize your mortgage and buy it back from us.

How do property taxes work?

You will be responsible for the cost of property taxes for the time we own the home.

BUYING A HOME

Can I use my own agent?

Does my agent still make money off the transaction?

Yes. Working with us does not affect your agent’s commission.

What if I need to sell my old home before I can buy back my new home from Homeward?

Is Homeward a mortgage lender?

Are there benefits to using Homeward Mortgage instead of another mortgage company?

Yes, there are several:

Homeward Mortgage offers a Best Price Guarantee, so you can be sure you’re getting the best deal.
Homeward Inc, Homeward Mortgage, and Homeward Title are affiliated companies so we can offer you a more streamlined experience.

If you use Homeward Mortgage as your lender, you'll receive a credit at closing. To learn more about program fees and credits, visit our Pricing page.

I found a property I want to make an offer on. Now what?

Who makes the offer to the seller?

You’ll work with your agent to make, negotiate, and finalize the offer with the seller.

How does the appraisal work? Can my client waive the appraisal contingency?

Who orders the inspection?

As the homebuyer, you are responsible for ordering the inspection.

Why are there two closings with two different contracts when I use Buy before you sell or Buy with cash?

How fast can you close?

What happens when Homeward closes on my new home?

You won’t attend the Homeward Purchase closing (when we buy the home for you).

How soon do I have to buy back my new home from Homeward?

On average, our Buy before you sell clients buy back their new home from us in 45 days.

Our Buy with cash clients and Backed by cash clients (in the rare event cash is evoked), who don’t have an existing home to sell, buy it back much faster.

‍

What does “possession pursuant to leaseback” mean?

How do you handle the residential service fee in Texas?

In Texas, real estate contracts include a section dedicated to negotiating a credit from the seller to cover a residential service agreement (also known as a home warranty).

How do you handle seller credits during the buyback?

Mortgage guidelines regulate how big IPCs can be and how they are applied. Your IPC limit is based on two things:

your loan-to-value (LTV) ratio
your type of occupancy (is this your primary residence, a second home or an investment property?)

Please note that credits cannot exceed your actual closing costs and cannot be applied to your down payment.

SELLING A HOME

Will you buy my old home?

What is Floor Price Certainty?

How do you determine my floor price?

What happens if you buy my home at the floor price?

If we buy your existing home, we’ll put it back on the market and sell it. You’ll pay us the standard 6% agent commission, which we’ll use to cover any real estate agent and title fees.

WHO TO CONTACT

Customer Experience Managers

Yes though you’ll find our standard options to cover the vast majority of your needs. If not, get in touch and we’ll create something custom.

WHO MIGHT REACH OUT

These Homeward specialists may reach out to you directly to ensure everything remains on track.

Approval Specialists

email@website.com

(512) 572-6853

Your Approval Specialist ensures your mortgage application is complete and may request supporting documents.

Transaction Support

email@website.com

(512) 399-6237

This team assists with your approval to make a cash offer and the closing of your new home. Once you are in your new home, they can also help you with anything related to your rent, insurance, or home warranty.

Loan Officers

email@website.com

(512) 668-7495

Once you find a home, your Loan Officer becomes your primary mortgage contact until closing.

Homebuyer FAQs

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