.jpg)
Buyers Frequently Asked Questions (FAQ)
Q: When should I get pre-approved?
A: If you are planning a move within the next six months, you should get pre-approved before you begin your house hunt. Being pre-approved will help you determine a price range you are comfortable with and will also strengthen your position when making an offer.
Q: How much house can I afford?
A: Ultimately, how much you can afford has to do with what down payment and monthly payment you feel comfortable with. Typically, home buyers will purchase houses that cost between 1.5 and 2.5 times their annual income. Your lender will help you determine a price range that is right for you and your family.
Q: Why should I have my own agent, can't I just use the listing agent?
A: Although it is not a requirement to work with your own agent when purchasing a home, it is a good idea. It is important to have an agent that represents only you and your best interests. If you work with the listing agent, they are representing you AND the sellers. Plus, because our fees are paid out of the seller's proceeds, we can offer our services at no cost to you.
Q: What is earnest money?
A: Earnest money is a "good faith" deposit submitted with your offer to show the sellers that you are serious about purchasing their home. Earnest money is a required part of the contract, though there is no set amount. The amount of earnest money that you offer in the contract can be used as a negotiation tool. The money eventually becomes part of the purchase, and will show as a credit to you on the settlement statement.
Q: What are closing costs?
A: Closing costs are charges paid to various entities during the real estate transaction. They can include escrow fees, document preparation fees, appraisal fees, and lender fees. Your lender should be able to provide you with a close estimate of your closing costs before you make an offer on a home.
Q: Is it necessary to conduct a home inspection?
A: Again, it is not required to conduct an inspection, but it is a very good idea. Inspections typically cost between $300 and $500 and can save you thousands of dollars in the long run by exposing defects that otherwise would not be known until after the home is purchased. The inspection is part of the negotiation process and gives you an opportunity to ask the seller to make the suggested repairs. Whether or not your inspection discovers issues with the house, it is a small price to pay to have peace of mind.
Q: Will I need an appraisal?
A: If you are planning on taking out a loan to purchase your house, virtually every lender will require an appraisal before the loan is approved.
Q: What is title insurance?
A: Title insurance protects against loss from any defects in the legal title, liens against the property or other adverse claims. The lender usually requires title insurance.
