What is the first step in buying a home?
Unless you are paying cash for the property, the first step is to get with a good lender and get pre-approved for a mortgage so you will understand your budget as well as have a pre-approval letter you can submit with your offer.
How do I determine the right price for a home?
A good real estate agent will compare similar homes in the area considering factors like square footage, condition, amenities and upgrades.
What should I look for in a home inspection?
Always hire an inspector who will provide a written report and is easily accessible to answer questions. Your focus should be on major issues affecting the house such as the roof, plumbing, electrical systems, HVAC and structural problems.
What is escrow?
Escrow is a neutral third party that holds funds such as earnest money until the sale closes or terminates. The closing office or real estate brokerage is typically the escrow agent and holder of the earnest money.
What are closing costs?
Closing costs are fees associated with finalizing the real estate transaction. The closing costs are considerably greater if a new mortgage is to be obtained as opposed to an all cash sale. Closing costs include loan origination fee, appraisal, title insurance, and attorney fees.
How long does it take to buy a home?
It can vary, but on average 30 days.
What is a buyer’s agent?
A buyer’s agent is a real estate agent that represents the buyer’s interest during the home buying process. He will help you locate properties, negotiate offers on your behalf, help you through the inspection process and reviews the settlement statement at closing.
What is the difference between pre-qualification and pre-approval?
Pre-qualification is the initial estimate of how much you can borrow. Pre-approval is a more thorough process in determining what you are qualified to purchase. Receiving a pre-qualification letter or pre-approval letter from the lender does not mean you have final loan approval. Final loan approval comes when the lender gives the “clear to close”.
What is a contingency in a real estate contract?
A contingency is a condition that must be met before the sale can be closed such as a financing contingency, appraisal contingency or the sale of another property contingency.
How much should I offer on a home?
Your offer should be based upon comparable sales in the area and your budget. Your agent can help you with comparable sales.