|
|
 |
 |
 |
What
is the difference between being “pre-qualified”
and “pre-approved”?
Both occur with your lender. If you
are “pre-qualified”, you
have met with your lender to determine
what price you can afford based on the
down payment, your debts, the amount
your mortgage company (lender) will
approve for your mortgage. Being “pre-qualified”
is preliminary to a “pre-approval“.
If you are “pre-approved”,
your credit, employment and funds have
been approved by your lender. “Loan
approval” occurs after the previous
steps have been taken, an appraisal
of the property has been conducted,
and the title company has reviewed the
title commitment.
What are closing costs?
Closing costs are an accumulation of
charges paid to different entities associated
with buying and selling the property.
For buyers, these costs are usually
4-6% and can vary slightly. Closing
costs are for such things as loan application
fees, appraisal fees, prorated property
taxes, credit report, discount fees,
mortgage insurance (MIP, MPI), origination
fees, and title insurance.
What is a point?
One point is equal to 1% of the new
loan amount. Sometimes the interest
rate is reduced in order to make the
amount of interest of the loan lower.
By charging “points” the
lender is able to bring the real estate
loans to competitive rates of other
investments.
What is earnest money?
Earnest money is submitted with the
offer as a sign of good faith that you
are seriously interested in buying a
home. The earnest money check is not
deposited until the offer is accepted
by all parties, signed and receipted
by the title company or attorney’s
office. At this time, the earnest money
check is deposited and becomes a part
of the purchase price and is held in
a trust account until closing. Earnest
money is usually from 1-5% of the purchase
price.
What is title insurance?
Title insurance, sometimes referred
to as title policy, protects the named
insured against loss because of defects,
liens, encumbrances, adverse claims,
or other matters not shown or disclosed
to the new owner that attach before
the date of the policy. Title insurance
may be paid for the buyer or seller,
but is usually paid for by the seller.
What is an inspection?
There are many types of inspections.
An inspection is designed to evaluate
the structural and mechanical condition
of the property. It is not the same
as an appraisal which evaluates the
market value of the property. Buyers
involved in real estate transactions
need unbiased information about the
physical condition of the property they
plan to buy or sell. Inspections are
not required but strongly suggested.
Inspections include but or not limited
to home inspection, wood destroying
insect inspection, septic inspection,
and swimming pool or spa inspection.
Some inspectors are licensed to perform
different types of inspections and others
perform a single type. Your agent will
discuss the inspections applicable for
the property being considered and provide
a list of inspectors.
Home Inspectors vs. Engineers
Home Inspectors examine any component
of a building through visual means and
through normal user controls, without
the use of mathematical sciences. Home
inspectors are licensed through Texas
Real Estate Commission (TREC).
Engineering is an analysis or design
work requiring extensive preparation
and experience in the use of mathematics,
physics, chemistry and the engineering
sciences.
Finding a Qualified Inspector
Inspectors may be located by referrals
from past customers, your real estate
agent, a mortgage company, or Yellow
Pages under “Building Inspection
Services”. You may wish to ask
if the inspector is a member of the
American Society of Home Inspectors
(ASHI). ASHI has established standards
of practice which include specific services,
limitations and exclusions that can
be expected from home inspectors. Click
here for a list of local Licensed Inspectors.
Buyer Representation
In some states real estate agents may
only represent the buyer or only the
seller.
Agency law in Texas previously allowed
agents to represent only the seller.
Real estate agency law now allows for
agents to represent the buyer, the seller,
or both as an intermediary. Buyer’s
agents are able to represent the buyer’s
best interest in the real estate transaction.
Your agent will meet with you to understand
your home criteria, research the market
area you desire, perform a comparable
market analysis to determine the best
purchase price, assist you in financing
arrangements, and act as your advocate
through the entire purchase process
in the most professional manner possible.
Real estate commission is set at the
time a property is listed with the listing
agent and is usually paid by the seller.
Will the Buyer be required to
sign a Buyer’s Representation
Agreement?
Buyers receive the Information About
Brokerage Services form upon meeting
an agent to view properties. This form
explains how the agent may represent
the Buyer, the Seller, or both parties,
as an Intermediary. While signature
is not required until a contract is
written, it becomes necessary at that
time.
What about new homes & subdivisions?
Many builders and developers are willing
to pay a real estate commission to a
Realtor who is working with a buyer
for one of their homes. It is important
for this to be discussed and established.
There may be a registration agreement
between the parties, identifying the
prospective buyer and the buyer’s
agent.
What about homes “For
Sale By Owner”?
Many For Sale By Owner sellers, otherwise
known as FSBO’s, are willing to
allow a buyer’s agent to show
their home and pay real estate commission.
This not only allows for the buyer to
be represented, but allows the buyer
the expertise of their agent, for the
best pricing of the FSBO and parties
who are experienced in the process of
home purchase. |
|
|
|
|
|
 |
RE/MAX
Properties
3225 University Blvd.
Tyler, TX 75701
Phone:
(903) 565-6999
Fax:
(903) 565-6964
E-mail:
TheTeam@DougandPJ.com |
|
|
|
 |
|
 |
|
|
 |
| |
|
Equal
Housing Opportunity | Website Designed by 