| Buyer Resources Congratulations for educating yourself on the most powerful investment most people will make during their lifetime! Whether you are a first-time buyer or a seasoned investor, buying a home can be a nerve-racking experience. With hundreds of thousand of dollars exchanging hands, we always encourage buyers to educate themselves. We have provided this section just for you. Feel free to look around, take some notes, write down a few questions for us, then contact us to let us know how we can better serve you!
How much can I borrow?
Before you hop in the car to begin house hunting, we recommend contacting Tom Mercadante at Creative Mortgage Solutions. Tom is a local mortgage company that specializes providing unmatched customer service through complete communication with his clients.
When you talk with Tom, he will take a look at some basic information you provide, and give you a price range to look within. This price range will be determined by your down payment amount, the monthly mortgage amount you would like, and the length (term) of the loan in months. Oh, and the APR plays a big part in what your price range will be! Unfortunately, none of us have any control over what Greenspan decides on the interest rates.
A typical down payment is anywhere from 5-20%, with some special loan programs offering 0-3% down payments. In addition to a down payment, most situations will require the buyer to pay cash towards the closing cost. Often times, the cost of the closing can be a point of negotiation with the seller, especially if they are anxious to sell the home.
A fast way to calculate a monthly mortgage payment you might qualify for is to multiply your gross household monthly income (income before taxes are withheld) by 0.28. Take this figure to Tom at Creative Mortgage Solutions, and he will help you determine the price range you should be looking in.
Do I need to do a home inspection?
As a condition of your offer to purchase a home, most Purchase and Sale Agreements are contingent on the results of a professional home inspection. A typical home inspection analyzes the good, the bad, and the ugly. Most homes do not have the “uglies”, and very few have the “bads”, but a home inspection give you the knowledge about the home; thus, helping you decide if this is really the home for you. Minor repairs can also be used as a point of negotiation, helping you get a better price for the home, or by getting the seller to pay some of the closing costs for you.
Please contact us for a list of certified home inspectors that can help make your purchase a little less stressful!
What is a Purchase & Sale Agreement?
You found it. The perfect home. You are ready to make an offer. We are set and ready to step up and go to bat for you! This contract outlines the terms of property transfer between you and the seller. The seller’s agent will be representing them, and we will be representing you. The contract usually consists of the following forms:
Earnest Money Receipt
Inspection Addendum
Financing Addendum
Contingency Addendum
Conditions and Disclosure Addendum
Special Conditions Addendum
Lead-based Paint Addendum, if applicable.
It is our job to make sure you have the best possible information before you commit to making this important step in the transaction.
Why I need a Realtor®
Buying Power
Most Realtors will ask you to be pre-qualified by a lender before you begin your
quest for your dream home. We can inform you of your financing options and the
maximum loan amount you could qualify for. This will save you the time and agony
of falling in love with a home you may not be able to afford. We can also get your loan application credit pre-approved. This could make your purchase and sale negotiations stronger with the seller since your home financing is already in place and you are ready and able to perform on the purchase.
Location
Your Realtor knows the community and can guide you to the neighborhoods that match your criteria for schools, shopping, services, and affordability. This will save you time and gas. Your Realtor will also know about area trends that can impact your purchase price and your future resale value!
Selection
Your Realtor can provide a list of homes in your price range in a matter of minutes.
You don’t want to waste hours of driving time in the hopes of stumbling over a home you can afford! This may mean the difference between finding your dream
home or losing out to someone else because they had a Realtor who found it first. You should know that sometimes bargain homes sell right away because Realtors hear about them and tell their clients. This can happen before the advertising is out. If you stay committed to your Realtor, he or she can tell you first!
Representation
A Realtor can help you negotiate pricing. How will you know if you are paying too much or offering too little? Wouldn’t you like to know how motivated the seller is due to job transfer, divorce or financial pressures? Wouldn’t this strengthen your pricing negotiations? A Realtor can help you with things like inspections, repairs, furnishings, the date you take possession, seller contributions. A Buyer’s Realtor will represent you and negotiate to safeguard your interests.
Disclosures
Your Realtor will provide you with a very detailed disclosure from your seller telling you what he or she knows about the condition and history of the property you intend to purchase. This will cover things like the plumbing, wiring, foundation, roofing, infestation, lead paint hazard, asbestos, oil tanks buried in the yard and septic tank. If the seller misrepresents information on the disclosure, you should have recourse. If you have any concerns about the condition of the property, you should consider having a home inspection done.
Title Issues
Your Realtor can also alert you to title issues such as zoning, easements and rights of access that impact the property that you are interested in.
Trained Professionals
Realtors are required to take many hours of training every year so they are equipped to give you competent service. Have you ever messed up a complicated home improvement project you tried to do yourself? You discover very quickly that professionals are worth what they are paid. They have the expertise to perform,
which saves you time, money and anxiety. We highly recommend Realtors for every purchase!
Experience
Realtors have experience dealing with Purchase and Sale Agreements. Without
Realtors, buyers and sellers can write up Purchase and Sale Agreements that can not be used or performed on by lenders! Why compromise your earnest money deposit?
Ethics
Professional Realtors are bound by a strict code of ethics and are committed to treat all parties to the transaction honestly. top
"Why Buyer's Need Realtors" ©Creative Mortgage Solutions. All Rights Reserved.
FAQ’s
What happens to my earnest money when I give you the check?
Earnest money shows a seller how serious you are about purchasing their property. There is not set amount for the earnest money. These funds are usually held by the 3rd party escrow company in the form of a check, until the closing date when the funds are distributed to the seller. These funds then show up as a credit to the buyer on the settlement statement.
What is the difference between being Pre-Approved and being Pre-Qualified?
Pre-Qualified means that based on the information you shared with your lender, you will most-likely be approved for a loan in a particular price range. Pre-qualification is usually the first step the buyer takes in helping narrow down the types homes to look at. Pre-Approval means that you have provided all the information needed for the lender to approve a loan for a particular dollar amount. This is usually a maximum amount that you can borrow. As a pre-approved buyer, you show the seller you are a serious buyer and can prove your ability to fund the purchase of their home if an offer is accepted. Whenever possible, take the time to become a pre-approved buyer. This will give you a stronger position when making an offer.
What are closing costs?
Closing costs are usually paid by the buyer; however, negotiations can often result in the seller offering to pay for some of the buyer’s closing costs. Examples of closing costs are escrow fees, home inspections, lender fees, and document preparation fees.
What is title insurance?
Title insurance protects the buyer against any defects that may arise on the legal title after the home has been purchased. Unknown liens against the property, adverse title defects, or other past mishandlings are insured against and are no longer a risk for the buyer. The lender most often requires the purchase of title insurance.
What is a “point?”
A point is equal to one percent of the loan amount. Lenders often charge points at the closing. This is in addition to fees and. Always compare points charged when comparing loan offers. For more buyer resources in other areas, check out these sites: If you are looking for Greenville SC Real Estate, look no further than Eddy Kicker - for all your Greenville Realty needs. If you are relocating or looking for the Prescott Arizona MLS, make sure to stop by the Prescott AZ professionals at Prescottscott.com, a Prescott Real Estate Tool for you and your family. Search the MLS for homes and condos in the Blue Ridge Georgia Real Estate market. If you are looking for Hilton Head Homes for sale, drop by Hilton Head Home Source for all your Hilton Head South Carolina real estate needs.
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