Faqs
1. Should I talk with a bank before looking at homes?
Yes, definitely yes. This will determine how much you can approve. There are lots of reasons why but the most important one is knowing how much you can afford. Why would you look for properties that are at $350,000, if you can only afford. $300,000.
2. Should I buy or continue to rent?
Buying and renting are both solid options. It all depends on the circumstances. The interest rates right now is really good. A 30-year FHA mortgage can be locked in at a rate of around 3.5%. Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent.
3. Can I find a rent-to-own property?
This can be really hard to find but it’s out there. When an owner is offering “rent-to-own” as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.
4. I own a home, should I buy another before selling my current home?
You don’t know when you can sell your home. No one can predict that. My take on this would be to sell your current home before buying a new home this will will put you in an ideal position to negotiate on the new home you’re purchasing due to the fact you are purchasing without the sale contingency of your current home.
5. Do I really need a Real Estate Agent?
Here are some reasons why you need one. Without a realtor, buying or selling a property can be really difficult. Having a Real Estate agent can expedite the process.
6. Who pays their fees?
In most cases the seller pays the fee.
7. What is a short sale?
It is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full.
8. What is a foreclosure?
It is a property owned by the lender. Foreclosure can be more easier transaction than short sale. If you are going this route, please consider the property you’re buying is “as-is”.
9. How many homes should I look at before putting in a purchase offer?
There is no specific number of homes you should look at before buying a home. Don’t feel that if you were to purchase the first home you look at that you’re making a mistake. Same can be said if it takes you looking at 25 homes.
10. How much should I offer the sellers?
This is your decision but it is recommended to ask advise from your realtor.
11. What is an earnest money deposit?
When a buyer purchases a home, they provide the seller’s real estate company a deposit to hold in their escrow account.
12. How long does the seller have to respond to my offer?
There’s no really concrete answer to this but a purchase offer will have a so called “Life”. The life can vary from 12 hours to 4 days. Your realtor has the best advise for this.
13. What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses. The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to. If your offer is rejected, meaning the seller says no and doesn’t counter, you have the right to place another offer.