| Who is a REALTOR®? |
| Why use a REALTOR®? |
| I want to buy a house. Do I need to have a REALTOR®! Or can I negotiate on my own as an agent? |
| What should I consider before purchasing? |
| How can I check my credit rating before I apply for a mortgage? |
| Why should I consider paying points? |
| What is title insurance and why do I need it? |
| Are there first time buyer discounts |
| What can help make house-hunting a positive and rewarding experience? |
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| Who is a REALTOR®? |
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| REALTOR® is a real estate professional who is a member of the National, state, and local boards of REALTORS®, adhering to a strict code of ethics. A REALTOR® encourages high professional standards through required educational programs, professional certifications, and principles of real estate sales practices. |
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| Why use a REALTOR®? |
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REALTOR® maintains a high level of knowledge of the process of buying and selling real estate.
Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. If you had a tax problem, would you attempt to deal with it without the help of a CPA? If you had a legal question, would you deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would not be advisable to consider a deal in real estate without the professional assistance of a REALTOR®! |
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| I want to buy a house. Do I need to have a REALTOR®! Or can I negotiate on my own as an agent? |
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| It doesn't cost you anything extra to have your own agent, because the seller is paying for it. If you don't have your own agent, the seller's agent will often represent both you and the seller as a "dual agent" or just represent the seller. This means the agent either has divided loyalties or is working for the seller, not you. The seller’s agent isn’t going to be on your side. It is always better to have an agent exclusively working for you. |
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| What should I consider before purchasing? |
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| Consult a REALTOR® to help you to determine your price range. The price you can afford to pay for a home will depend on six factors: (1) Your income, (2) The amount of cash available for the down payment, closing costs and cash reserves required by the lender, (3) Your outstanding debts, (4) Your credit history, (5) The type of mortgage you select, (6) Current interest rates |
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| How can I check my credit rating before I apply for a mortgage? |
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Your credit rating is based on a combined score generated from three credit bureaus, which look at your credit history, amount of credit available, and recent inquiries to determine what's called your FICO score. For a small fee, you can get your score or review your credit report by going online to www.myfico.com or contacting the credit bureaus directly at:
Equifax: (800) 685-1111
Experian: (888) 397-3742
TransUnion: (800) 916-8800
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| Why should I consider paying points? |
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| Buyers often choose to pay a one-time charge called mortgage "points" in exchange for a lower interest rate. Usually paid at closing, each "point" costs 1% of the mortgage amount, or $2,000 on a $200,000 loan. The lower rate reduces the monthly mortgage payment, and points paid in conjunction with the purchase of a home are generally tax-deductible in the year they're paid (see tax advisor). Monthly savings will often exceed what was paid in points in just a few years' time. |
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| What is title insurance and why do I need it? |
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| Basically, title insurance assures that you have clear title to the home you're purchasing. A title search is the primary component of "due diligence," a process that will be started either by your attorney, if you are using one, or by the title company you choose. The title search determines whether the seller actually owns the property and if there are any claims against it. |
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| Are there first time buyer discounts |
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| Numerous programs exist to help first time buyers purchase a home. A host of private lenders offer low-down payment loans. The U.S.Department of Housing and Urban Development offers a variety of programs through FHA. Loan limits vary depending on the county where the property is located. Fannie Mae has a program allowing people to buy with low down payments. For details, contact a REALTOR®! to assist you in finding lenders who offer government-insured loans. |
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| What can help make house-hunting a positive and rewarding experience? |
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1. Location counts. You've probably heard the old real estate joke about "location, location, location," but the point still bears repeating. Location is crucial. How far are you really willing to commute to your place of employment? How good are the local schools, shopping centers, public transportation, seniors’ services and other public amenities?
2. Get pre-approved for a mortgage. It depends on your household income, credit worthiness, interest rates, the type of loan you select and how much ready cash you have for the down payment and closing costs, among other factors. Rather than guessing or estimating how much you can afford to spend, ask a lender or mortgage broker to give you a full assessment and a letter stating how much you're qualified to borrow. The true amount may be much more or much less than you think.
3. Use a checklist. Touring multiple homes is a confusing experience for most people. Rather than relying on memory, make notes about the homes you visit. Turn your priorities into a personalized home-shopping checklist and use it track the features of each home.
4. Wear comfortable clothing and sturdy shoes. House-hunting can be tiring, especially if you're relocating to a distant community and want to see a dozen homes in one day. There's no sense in torturing your feet unnecessarily.
5. Be prepared to make an offer. House-hunting can also be frustrating, especially if you know in your heart you're not really emotionally or financially ready to buy a home. If you're not ready, don't put yourself through the exercise. If you are ready, go through a blank purchase contract ahead of time so you'll know what decisions you'll face when you make an offer.
6. Relax. Granted, buying a home is a major life-altering event. But it's not worth making yourself insanely crazy or super-duper stressed. Save time at the end of your house-hunting expedition to unwind, calm your thoughts and emotions and keep the whole experience in perspective. |
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