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Why Do I
Need a Realtor to Buy or Sell a House?
New home buyers often focus on the physical aspects of the home
such as the number of rooms, vaulted ceilings and the oversized
garden tub while paying less attention to items such as zoning restrictions,
local school system, convenience of hospitals, shopping and recreational
possibilities. These less obvious features of the home may significantly
impact you home choice. Selling your home “for sale by owner” presents
a unique set of challenges and places large demands on your time
and sometimes sanity. Employing a real estate professional can greatly
improve your homes exposure to potential buyers resulting in a faster
sale at a higher price.
First Time Home Owners Am I Ready to Buy a House?
First time home buyers are typically looking for more space to accommodate
children, start investing in a home rather than paying an endless
stream of rent, and to add a measure of permanence to their lives.
We can assist first time buyers with the information, advice and
expertise they require to locate their dream home. “But can I afford
it?” Job history, credit history, and the amount of down payment
are all factors in calculating the answer to the can I afford it
question. Mortgage lenders have a strange fixation on being paid
back. Your history of paying bills on time and not over extending
on credit cards demonstrates to the lender that you are a good credit
risk. “How much can I afford” there are numerous online calculators
that can assist you with this calculation but generally your mortgage
payment should be limited to a maximum of 28 percent of gross monthly
income. Are you ready to start looking fro your new house? Just
give us a call.
What is Earnest Money?
Earnest money demonstrates your seriousness about buying a home.
It shows the house seller your good faith and generally is between
1 to 5 percent of the purchase price. If you change your mind about
purchasing the home the money may be forfeited. If the seller accepts
you offer the money is applied to the down payment or closing costs.
If the seller rejects the offer the earnest money is returned to
you. The purpose of earnest money is to protect the seller since
they may have to pass on other offers while the buyer is arranging
financing, etc.
How Are Mortgage Loan Pre-Qualifying and Pre-Approval
Different?
Mortgage loan pre-qualification is an informal way to see how much
you maybe able to borrow. You can be pre-qualified by a bank or
lender over the telephone with little or no paperwork involved.
The lender will inquire about your income, debts, and the amount
of down payment you plan on making. Loan pre-qualification helps
you arrive at a ballpark figure of the amount of mortgage loan you
can afford.
Mortgage loan pre-approval is a mortgage lender's commitment to
lend money to you. It is a much more formal processes involving
more detailed financial records and preliminary loan approval process.
Mortgage loan pre-approval gives you a definite amount of what you
can spend on a new house and demonstrates to the house seller that
you are serious about buying.
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