Buyers:
Why should I get pre-approved?
What is the difference between pre-qualification and pre-approval?
Are there any programs available for first time home buyers?
What if I have bad credit?
What is earnest money?
Can I get my earnest money back if the deal falls through?
How long does it take to close on a house after I get an accepted offer?
What are the most common types of inspections?
Who pays for the inspections?
What is dual agency?
How do I decide on the best price for my house?
What price should I offer?
What is dual agency?
What roll does the Internet play in advertising my house?
Sellers:
Why should I get pre-approved?
A pre-approval can add to your negotiating strength when you are ready to make an offer on a home by demonstrating to the seller that you are a qualified buyer.
The pre-approval process will also show you any credit problems that you might not be aware of and gives you time to address any issues that might be found.
A pre-qualification analysis is typically the result of information shared between a mortgage lender and a potential mortgage borrower and usually does not incorporate information obtained from a credit report. The end product for a pre-qualification analysis will be a "ballpark" estimate of the maximum mortgage amount for which you may qualify. Typically there is no cost or commitment on behalf of either party for a pre-qualification analysis.
A mortgage loan pre-approval application typically results in a written loan decision following a complete mortgage application. Many lenders will require an application fee. You can typically apply for a pre-approved mortgage prior to signing a purchase agreement for a home. Many lenders will also allow you to lock an interest rate at the time you apply for a pre-approved mortgage.
Yes, there are a variety of program to help first time home buyers. These include down payment assistance, help with closing costs, etc. Speak with your mortgage loan officer for more details on which programs might work for you.
The home buyer tax credit of 10% up to $8000 for first time buyers is still available until April 30, 2010. Some income and other restrictions apply.
Loan programs exist that can help many people who have bad credit histories. Each case is different, so the best thing to do is to speak with your mortgage loan officer to find out the specifics of your situation.
Earnest Money is the deposit that you include with your offer. This is part of the purchase price, not additional.
After you have come up with an offer price, the next step is to determine how large a deposit you want to make with your offer. You want the "earnest money deposit" to be large enough to show the seller you are serious, but not so large you are placing significant funds at risk.
One recommendation is to make sure your deposit is less than two percent of your offered price. The reason for this is that if your deposit is larger than that the lender will pay particular attention to how you came up with the funds. You might have to provide a copy of a canceled check along with a bank statement showing you had the money to begin with. Normally, this is not a problem, but if you have a short escrow period or are barely coming up with your down payment, it could pose an inconvenience.
Another reason to limit your deposit is "just in case." Although significant problems are the exception and not the rule, they do occur. "Just in case" there is a nasty or prolonged dispute between you and the seller, the less money you have tied up in a deposit, the fewer funds you have placed at risk.
As with practically everything in real estate there are exceptions to this rule too. During a hot market there may be multiple offers on the property that interests you. A large deposit may impress a seller enough so they will accept your offer instead of someone else’s, even when your unknown competitor is offering the same price or slightly higher.
Since large deposits do impress sellers, you may also find that by making a large deposit you can convince the seller to accept a lower offer. More money up front may save you money later.
That depends on the reason that deal fell through. If you simply change your mind and decide to walk away with no valid reason, then you will lose your earnest money. However, there are situations in which you can get your money back. An example would be if the inspection revealed a major problem with the house that you were not aware of, and the sellers refused to remedy the problem.
There are many factors that can influence the price of a home. One important aspect of determining the right price to offer is the Comparable Market Analysis (CMA). The CMA uses what other similar houses have sold for in the last 6 to 12 months as a guide to deciding what to offer.
The normal time period from contract to closing is about 30 days; however, this can vary widely depending on the situation.
The three most common inspections are:
- Whole house inspection in which the inspector looks at most aspects of the house, such as the furnace, central air, roof, foundation, wiring, plumbing, etc.
- Radon
- Termite
The buyer pays the cost of the inspections. However, if major problems are found in the inspections, the buyer has the right to ask the seller to remedy the problems.
Dual agency is the situation in which the same Real Estate agent represents both the buyers and the sellers in a transaction. This is perfectly legal and ethical as long as both parties are aware of it and approve it in advance.
Back to topWhat is dual agency?Back to topWho pays for the inspections?Back to topBack to topHow long does it take to close on a house after I get an accepted offer?Back to topWhat price should I offer?Back to topBack to topBack to topWhat if I have bad credit?Back to topBack to topWhat is the difference between pre-qualification and pre-approval?Back to topWhat are the most common types of inspections?Can I get my earnest money back if the deal falls through?What is earnest money?
Are there any programs available for first time home buyers?Click here for more information.
Sellers:
The best way to determine the appropriate price of your house is to do a Comparable Market Analysis (CMA). This process uses the actual sales prices of similar houses that have sold in the last 6 to 12 months and makes adjustments for the specifics of your house.
The Internet is quickly becoming a major avenue of communication in the Real Estate field. As with any major purchase, the first thing that many people do to shop for a house is go on the Internet. Therefore, an effective marketing plan for your home will need to include significant exposure on the Net.
Dual agency is the situation in which the same Real Estate agent represents both the buyers and the sellers in a transaction. This is perfectly legal and ethical as long as both parties are aware of it and
approve it in advance.
Back to topWhat is dual agency?Back to topWhat roll does the Internet play in advertising my house?Back to topHow do I decide on the best price for my house?
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