Home Buying Guide

Home Buying Guide


WHAT IS A BUYER’S AGENT?
Briefly, it’s someone who represents the Buyer (and the Buyer’s best interests) in a real estate transaction.

HOW SHOULD I SELECT AN AGENT?
The same way you would look for a doctor – ask your friends for a personal recommendation, find out who specializes in the type of help you need, and check their references.

WHAT WILL IT COST?
More than likely, the cost of a Buyer’s broker service is paid by the Seller or the listing company.

WHAT IS AN INSPECTION?
An inspection is meant to evaluate, at minimum, the structural and mechanical condition of a property.

WHAT IS AN APPRAISAL?
An appraisal is a market evaluation of the property. A professional appraiser inspects the size, condition, function, and quality of the home. Then they research similar homes and recent sales in the area to determine market value. Usually, the lender chooses the appraiser and the buyer pays for the appraisal fee, which ranges anywhere between $400 – $500.

WHAT ARE CLOSING COSTS?
Closing costs are an accumulation for charges paid to different entities associated with the buying and selling of real estate. For buyer’s, they are usually about 2 – 2.5% of the total sales price of a property.

Some of the closing costs you might encounter are: application fees, appraisal fee, county taxes, credit report, discount points, documentation fee, escrow fees, homeowners’ association fees, loan fees, mortgage insurance, original fees, tax registration and title insurance premium.

WHAT IS THE DIFFERENCE BETWEEN “PRE-QUALIFIED” AND “PRE-APPROVED”?
If you are “pre-qualified” it has been determined, with a loan officer, what price you can afford based on the down payment, debts and the amount the mortgage company will approve for the mortgage. Being “pre-qualified” is only a determination of probable credit.If you are “pre-approved”, credit, employment and funds have been approved by the lender.