What Is Covered in A Home Inspection?
Home inspections cover a variety of assessments and can be used for informational purposes only or as negotiations for repairs. The type of inspection will need to be specified on the agreement when the offer is made.
What Are Bank-Required Repairs?
When purchasing a home, potential buyers may apply for lending (mortgage) from various banks. In order to verify the loan, banks will require different levels of inspections in accordance with the type of loan.
Are Real Estate Prices Negotiable?
Real estate prices are negotiable, and it’s always best to go through an experienced agent to aid in the purchase or sale of the home. Analogous to having an experienced lawyer before entering the courtroom, the agent will help to guide you through the deal and any issues that may arise.
Why is it Better to Have a Pre-Approval Before Buying a House?
After getting pre-approved, your real estate agent will use your pre-approval letter (lending budget) along with your desired requests to research homes and schedule appointments. Beginning the home buying process without a verified pre-approval letter can mismanage expectations and miss out on putting in timely offers.
When is the Best Time to Buy a Home?
Timing is never perfect, but research shows the month of April provides the highest selection of homes on the market, whereas late November is the best time to negotiate for a better deal. Also important to note that many sellers are eager to close deals before summer ends to accommodate for the new school year.
Why Should You Care About Home Appraisals as a Buyer?
During the homebuying process, the buyer has been pre-approved for a specific amount (loan) to negotiate with. In the event the home’s value is lower than the offer (as determined by comparable properties and the home appraiser), the bank will lend up to only the appraised value. An appraisal gap occurs when the value of the home is “less” than the offer.
When Are the Best and Worst Times to Sell a Home?
Research shows the best time to sell a home is during the late spring/ early summer months as many families are considering the school year during their relocation. May, June, July, and August account for 40% of total annual sales volume in the real estate market. On the contrary, January is the worst time to sell a home, as market activity is much lower during the colder months.
How Long Will it Take to Buy a Home?
After the offer is accepted, it then takes about 30-45 days to get to closing where your agent will assist you with a number of action items.
Should I Order a Home Inspection?
A home inspection is highly recommended to help provide the most thorough background of the home. Many homebuyers and investors may feel uneasy about purchasing a home without first seeing a home inspection.
What is an Agent’s Commission Fee?
In a real estate transaction, an agent’s commission fee is the fee for the service and expertise provided by the agent. Typically, a real estate commission fee is 5-6% of the home’s sale price, and the buyer’s agent and seller’s agent split the fee.
Should I Do a Final Walk-Through?
Prior to the closing table, it is always recommended for buyers to do a final walk-through with their agent. Although it is not required, it helps to provide peace of mind before the final transfer of the property and to ensure nothing has changed since their inspection.
How Does a Reliable Source of Income Affect Buying a Home?
During the homebuying process, you’ll first want to speak with and evaluate mortgage lenders to get a pre-approval letter. This Pre-Approval Letter is what Real Estate Agents (and you) will utilize throughout the search process.
What is the Difference Between Down Payment vs. Earnest Money Deposit?
Although the two terms are similar, an earnest money deposit functions as a promise to the seller, while a down payment is a promise to the lender providing your mortgage loan. The earnest money you put up when buying a home can be applied to either the down payment or the closing costs.
What Are Closing Costs?
Closing costs include the associated fees professionals charge for services to finalize the real estate transaction and your home loan. Some of these services include but are not limited to: origination and underwriting of a mortgage loan, real estate commissions, taxes, title filings, and insurance premiums.
What is a Pre-Approval Letter?
A preapproval letter is a document that states how much a lender is willing to loan the buyer(s) for a new home. Often, it is the document that will help guide your relative price range assuming the buyer is not paying “cash” for the property. More importantly, the pre-approval letter will help direct the buyer and agent how much the buyer can afford when bidding on a property.
What Is an Appraisal Gap?
During the homebuying process, the buyer has been pre-approved for a specific amount (loan) to negotiate with. In the event the home’s value is lower than the offer (as determined by comparable properties and the home appraiser), the bank will lend up to only the appraised value. An appraisal gap occurs when the value of the home is “less” than the offer.
How Many Houses Should I View Before Purchasing One?
Every buyer is different. Although there is no perfect number of homes to view before purchasing a home, research is key to identifying concerns and saving time. Most home buyers typically view between 15 - 30 homes online or in person before putting in an offer.
What is Debt-to-Income Ratio?
Your debt-to-income ratio (DTI) is all your monthly debt payments divided by your gross monthly income. DTI is one of many factors lenders use to evaluate a buyer’s ability to manage the monthly payments.