Buyer Real Estate Questions
Buyer real estate questions are very important and should be answered so you can understand how the buying process works. Many buyers have lots of questions and many buyers are not aware that a Realtor like myself is here to answer all your questions and concerns. Below you will find most of the commonly asked questions.
Buyer Real Estate Questions: #1
Yamily, What is the first step I must do before I start the process of buying a real estate property?
Yes. The first step in purchasing a property is getting yourself pre-approved for a loan with a mortgage lender. You are going to need to gather all your financial documents and submit the package to your mortgage broker.
When a buyer is considering in buying a property, whether it’s your first property, investment property or a secondary property, some buyers are under the impression that a pre-approved for a mortgage loan is as quick as if they were applying for a car loan. That is usually not the case. There is more involved when you applying for a mortgage loan.
The lender will ask you questions such as:
- Annual Income
- Amount of Cash you have for a down payment*
- Other Home Loans
- Credit Card Balances
- Other Loan Balances (Vehicles, etc.)
- School Loans
- Other factors affecting your income e.g. child support, tax payments, dividends, etc.
Buyer Real Estate Questions: # 2
Yamily, do I need to be pre-approved for a mortgage loan before shopping for a property?
Answer: It is generally a good idea to get yourself pre-approved before shopping for a property.
When you make an offer on a property the sellers are going to require a pre-approval letter from your lender to be attached to your offer along with the proof of funds. Some buyers make the mistake of finding their dream home and then losing the property because they did not have their financing in order and the lender obviously needs time to review the documents you submit before providing you with a pre-approval.
Buyer Real Estate Questions: # 3
Yamily, what is the cost to obtain a pre-approval letter?
Answer: The only cost that is associated with getting pre-approval letter is when the lender pulls your credit report. Some lenders change this fee up-front and some lenders charge you the fee at closing.
Buyer Real Estate Questions: #4
Yamily, what is prequalification?
Answer: A prequalification is where you have spoken to a lender about a possible home loan. The process is usually done over the phone or via email. You will provide the lender with the information described above. They, in turn, they will provide you with an estimate of what they believe you would qualify for if all the information you have provided them is accurate. IT DOES NOT MEAN YOU ARE QUALIFIED YET!! People often think that because they are pre-approved that they can get the loan. That is not true.
The mortgage broker still needs to run a credit check, verified any of the information you have provided. There may be things on your credit report that are inaccurate or that you have forgotten about that may inhibit the loan process or affect the loan amount. That why it’s always best to consult with a lender before you start to shop for a property.
Buyer Real Estate Questions: #5
Yamily, If I find a home that is not listed by your company can you still show me the property?
Answer: Yes I am able to show you any property on the market, new or resale, no matter who the listing broker is.
If you see a home advertised in the newspaper, online or if you drive by a home that interests you, please feel free to email me the property address and I will be more than happy to assist you. If you want to visit an Open House or a New Home Community, please feel free to email me the address or complex name. I can also setup the appointment on your behalf, so we can go together to see the property. Remember, home Information is always available to me, even if it is not a Xcellence Realty listing.
Buyer Real Estate Questions: #6
Yamily, when we find a house we like how do we buy it?
Answer: First of all I will need to type up the contract on your behalf, Once you sign the contract I will submit your offer to the listing agent that represents the Sellers. In the process that the Sellers are reviewing you’re written offer the Sellers of the property has three choices:
1.) They can accept your offer
2.) They can reject your offer
3.) They can make a counteroffer
If your seller accepts your offer you will need to wire transfer the escrow deposit to the Seller’s Title Company or the Title Company that you choose to represent you in the transaction.
If we receive a counter offer than more negotiations would have to be completed until both parties reach and agreement. When the seller accepts your counteroffer, or you accept the Sellers counteroffer, all changes made to the contract must be initialed by all parties in order for the contract to be fully executed.
Buyer Real Estate Questions: #7
Yamily, is it best to make a really low offer at first?
Answer: If your offer is too low you may take some unwanted risks. It is important to remember that if you make a low offer on a home and the offer is rejected or countered, another prospective buyer may submit an offer that may be accepted by the seller before you have the opportunity to submit another offer or accept the seller’s counteroffer. I have personally experienced where a buyer made a low offer to the seller, and the seller was insulted and refused to entertain any more offers from that client. The market is very competitive, try your best to always submit your highest and best offer.
Buyer Real Estate Questions: #8
Yamily, would it be in my best interest to work with several Realtors and not just one?
Answer: It is in YOUR best interest to work exclusively with me.
- I have access to every home that is in the Multiple Listing Service
- I am self-employed, not on an expense account, and will be paid only when I find your dream home.
- Your loyalty is greatly appreciated and in return you will receive the best of services I can provide to you.
- All of my time and professional advice, experience, and assistance are FREE to you as the Buyer! The Seller of the property you end up buying pays for my services.
Buyer Real Estate Questions: #9 What are some costs associated with buying a new home?
Answer: Basically, the costs are no different from when you purchased your existing home. They include moving expenses, loan costs, the down payment, a home inspection, title work and policy, and paying for a new hazard insurance policy, etc. Your lender can provide you with a Good Faith Estimate to disclosure to you the estimated costs that are involved when you buy a property.
If you any questions or need help applying for a mortgage loan you can always feel free to call Justin Miller at Primary Residential Mortgage, Inc. Him and his team will be more than happy to assist you with the loan process.
Mortgage Lender | Branch Manager
Primary Residential Mortgage Inc.
1845 Cordova Road
Fort Lauderdale, FL 33316
(:954-903-7256 | 7:954-301-6464 FAX