Questions frequently asked by Home Buyers
How
do I know what price range I can afford in a house?
There are many resources on the web which will calculate your mortgage payment on a house at different lending rates, or you can call a mortgage broker and they will help you find out what you can afford. Always remember to allow for property tax, insurance and maintenance costs in figuring out what you can spend on a monthly basis for your house.
There are many resources on the web which will calculate your mortgage payment on a house at different lending rates, or you can call a mortgage broker and they will help you find out what you can afford. Always remember to allow for property tax, insurance and maintenance costs in figuring out what you can spend on a monthly basis for your house.
Once
I start working with a real estate agent, they work for me, right?
Technically, an agent works for the seller unless other arrangements are made. When you first meet with an agent, they should have you sign a disclosure form, which says that they have explained this to you. Although an agent is responsible to the seller of a house, this does not mean that they will not work hard to meet your needs and help you all they can in finding the right house at the right price.
Technically, an agent works for the seller unless other arrangements are made. When you first meet with an agent, they should have you sign a disclosure form, which says that they have explained this to you. Although an agent is responsible to the seller of a house, this does not mean that they will not work hard to meet your needs and help you all they can in finding the right house at the right price.
What
is a Buyer’s Broker?
A Buyer’s Broker represents you and your interests rather than the seller’s. Their job is to be your advocate and the agent’s primary responsibility is to you. You do not have to pay extra for this, but you do have to have an explicit arrangement and contract with your agent confirming this status.
A Buyer’s Broker represents you and your interests rather than the seller’s. Their job is to be your advocate and the agent’s primary responsibility is to you. You do not have to pay extra for this, but you do have to have an explicit arrangement and contract with your agent confirming this status.
Should
I apply for a mortgage even before I find the house I want?
It is an excellent idea to get Pre-Approved for a mortgage early in your house search. When you find a house you like, your offer to buy is much stronger if your agent can assure the seller (backed up by documentation) that you will not have a problem securing a mortgage. An actual mortgage application requires a specific house/address and so cannot be done until after the owner accepts your bid. Note: A pre-qualification is NOT the same as Pre-Approval.
It is an excellent idea to get Pre-Approved for a mortgage early in your house search. When you find a house you like, your offer to buy is much stronger if your agent can assure the seller (backed up by documentation) that you will not have a problem securing a mortgage. An actual mortgage application requires a specific house/address and so cannot be done until after the owner accepts your bid. Note: A pre-qualification is NOT the same as Pre-Approval.
Once
my bid is accepted, what happens then?
Included in your Offer to Purchase dates will be built in for you to have some time to get a mortgage commitment and to have an inspection done. When these are done, a Purchase and Sale Agreement will be written up and will cover all terms of the purchase/sale including closing dates. Your agent will be able to go over all this with you on an individualized basis and explain any unclear areas.
Included in your Offer to Purchase dates will be built in for you to have some time to get a mortgage commitment and to have an inspection done. When these are done, a Purchase and Sale Agreement will be written up and will cover all terms of the purchase/sale including closing dates. Your agent will be able to go over all this with you on an individualized basis and explain any unclear areas.
What
is involved in a Home Inspection, and why is it done?
Once you have found a house you like and have agreed on a price with the seller, you have the right to have the house inspected by a licensed home inspector. If you have this done (which I always recommend), you pay the inspector. The purpose of a home inspection is to identify major problems areas in the house, such as with the roof or heating system. It should not be used as a “laundry list” for the seller to address every item that comes up – every house that is not new and has been lived in will have minor items of note. If there are areas of concern to you, your agent will help you negotiate with the seller to address them. This may involve a change in the house price or having repairs made prior to closing.
Once you have found a house you like and have agreed on a price with the seller, you have the right to have the house inspected by a licensed home inspector. If you have this done (which I always recommend), you pay the inspector. The purpose of a home inspection is to identify major problems areas in the house, such as with the roof or heating system. It should not be used as a “laundry list” for the seller to address every item that comes up – every house that is not new and has been lived in will have minor items of note. If there are areas of concern to you, your agent will help you negotiate with the seller to address them. This may involve a change in the house price or having repairs made prior to closing.
Do
I need a lawyer?
Many first time homebuyers use a lawyer during their buying process to review the Purchase and Sale Agreement, answer questions along the way, and be present at closing to represent their interests and explain forms to them. If you do not feel a need for this, I do recommend having a lawyer at least review your Purchase and Sale Agreement before signing it. It is a lengthy and detailed document that is legally binding, and once you sign it you cannot say you’ve changed your mind on some point or didn’t understand something and want to change it now.
Gangbuster Market? Yep. So buying or selling now more than ever you need a real estate agent at the top of their game. Call me at 978-580-1069 to talk about your needs.
Many first time homebuyers use a lawyer during their buying process to review the Purchase and Sale Agreement, answer questions along the way, and be present at closing to represent their interests and explain forms to them. If you do not feel a need for this, I do recommend having a lawyer at least review your Purchase and Sale Agreement before signing it. It is a lengthy and detailed document that is legally binding, and once you sign it you cannot say you’ve changed your mind on some point or didn’t understand something and want to change it now.
Gangbuster Market? Yep. So buying or selling now more than ever you need a real estate agent at the top of their game. Call me at 978-580-1069 to talk about your needs.
Comments
Post a Comment