General faq's
It is actually easy. A pre-approval involves you talking to a bank loan officer or mortgage broker. They will gather some information about your needs, your desired monthly payment, and also gather information about your current income. They will run a credit report, and based on all the information they gather, they will determine how much financing you qualify for, and what interest rate that they can acquire for you. This is a very important step in the home buying process. Sellers take a buyer much more seriously, and will be much more willing to negotiate with a buyer if they have already been pre-approved for the purchase price of the home.
While it is not mandatory from some agents, it will definitely show all parties ivolved (buyer's agent. listing, agent & sellers) that you are indeed a serious buyer. Also, having a pre-approval letter issued from a lender GREATLY improves your ability to negotiate a better deal with the seller, and really streamlines the time it takes to reach a signed deal! If you find the perfect house, you really don't want to wait a day or two just to get a pre-approval letter (the house may be sold to someone else in the meantime!) With all that being said, why WOULDN'T you want to have a pre-approval letter?
Absolutely! Many of our past clients have been first-time buyers. I REALLY enjoy helping clients realize their dream of owning their first home! Buying your first home can be very nerve-racking experience, but I understand that first time home buyers have a lot of questions, and I am eager to help our first time buying clients realize the American dream!
Wow, what a great question to ask! Traditionally, when a seller lists a house for sale, they hire an agent. That agent takes care of all aspects of selling the home...for the SELLER! The agent was hired by the seller, so that agent WORKS for the seller.
If you, as a buyer, call about a house you saw on the internet or after seeing the "for sale" sign in the yard, you are calling the agent that originally works for the Seller! Now, if you work with me as a buyer's agent, First, I will search the MLS and other sources to find homes that meet your criteria, then we will visit them together. In the mean time, I am learning all about your needs so I can more efficiently help you. I can help you set up your financing plan, and educate you about the current market. While visiting homes, I can talk to you about pricing, whether or not a home we are touring is under-priced, over-priced, or priced accurately. Anything we talk about is held strictly confidential, so the seller will not know anything about you unless you choose to share that info. I represent you, so our goal is to help you get the absolute best deal you can! After we put a deal together, I continue to help you every step of the way up to the day of closing to make sure everything goes well. (Ex. Home inspections, financing snafu's, ensuring repairs are completed, etc.
Working with a buyers agent is virtually free becuase the seller's agent has already agreed to compensate me for an executed contract! Would you rather work with an agent that was hired by the seller, or work with one that only has YOUR interests in mind, and wants YOU to get the best deal possible. Give me a call when you are ready! I want to work for YOU
Here is a great video to explain how to buy the best home, for the best value, with the least amount of aggravation, on YOUR timetable!
The real question is what does it cost you NOT to hire a good buyers agent to look out for you. In most cases, the answer to the original question of the cost, it is usually nothing, or a minimal fee at closing. As far as commission payable by the buyer, there is NO commission payable by the buyer in most cases. It is important to meet with your agent and learn more about the strategy you want to take before you start looking at homes!
Here is how commission usually works: Commission is negotiated at the time of the listing between the Seller, and the Listing agent. When the listing agent places their listing in the MLS, they automatically offer a portion to the agent who brings the buyer. Whether a buyer uses the listing agent, or uses their own agent in the transaction, the Seller still pays the same commission according to the listing contract. For this reason, it absolutely makes sense to build a relationship with a real estate agent to use as YOUR buyer's agent, and view properties with that agent.
First and foremost, the buyer's agent will represent their buyer's interests, and not the seller's interest. The buyer's agent will learn the likes and dislikes of their client, and will be able to target properties that he/she knows will be a good match. If a buyer only calls listings agents by calling on ads, or calling from a signs they have seen in a yard, and the buyer basis their home search in this manner, the buyer will not have an agent that really understands what they are looking for, and who knows the likes and dislikes. This can be a real time-waster, and cause the buyer frustration. If you are planning to buy a home, please call me so we can discuss your needs further. We are in the business of exceeding our clients expectations and look forward to talking with you!
Here is a great video to explain how to buy the best home, for the best value, with the least amount of aggravation, on YOUR timetable!
Many, but one of the role's of a good buyer's agent is to make it go smoothly, and that's why Buyers should have buyer representation! Here is a partial list I came up with, however there are even more steps behind the scenes that I will do!
- Meet with Buyers to determine buyers needs.
- Aid in lender financing options.
- I network with other agents, search the MLS, and other sources to find as many home choices as possible.
- Set up appointments to see homes.
- Visit homes, make recommendations to buyer.
- Write an offer, acquire all disclosures, and explain all forms to buyer.
- Present offer to sellers or selling agent.
- Negotiate terms back and forth until a deal is accepted
- Arrange escrow account deposits
- Arrange Home inspections
- Correspond with lender.
- Submit and negotiate any neccessary repairs
- Arrange a title closing agent to handle the actual closing
- Resolve any problems that arise along the way
- Arrange for property survey
- Arrange for title insurance to be issued for Buyer and Buyer's lender.
- Help Buyer submit any applications to condominum or Home Owner's Associations for approvals.
- Review the Closing statement to ensure there are no errors that can cost my Buyer any unneccessary expenses.
- Attend the Closing
This is a general guideline! It's important to use a buyers agent to help with this process, and remember, my services are almost completely covered by the seller in most cases, so why not have the help!
Closing costs are based on many factors including the purchase price of the home, the amount being financed, and what is actually negotiated between the buyer and seller! In general though, when acquiring a pre-approval from a lender, they will be able to issue buyers a "good faith estimate". It is very important to shop a few lenders and compare all the good faith estimates, because closing costs can vary GREATLY depending on whom you choose. Give me a call, and I will be able to cover this area in much more detail, and can even recommend several mortgage lenders that are very competitive.
That all depends. On a cash sale with no lender financing involved, I have seen sales occur in as little as a week or two. If financing is involved, closings usually will take place in 45 days (as a realistic timeframe)
