Who Needs A Buyer's Broker?
How do I know what price I can afford? Do I need a lawyer? What’s a contingency? Who holds my deposit? Can I get it back? What’s escrow? Who pays the REALTOR? Do I need to get pre-qualified? How will I know if I’m getting a good deal? Should I talk to a bank or a mortgage broker? Is it true that homeowners pay less income tax than renters? When does the home get inspected? Are a few unanswered questions going to keep you from your dream home? How much will my real estate tax be? Do I need money for a down payment? How much will the home actually cost every month? What are closing costs? How will I know how much to offer? What’s a title company? How should I approach a For Sale By Owner? Do I have to buy title insurance? Who is the REALTOR really working for? What happens if the inspection reveals problems? Are a REALTOR and an agent different?
I have the answers to all of these questions and more. You can do this without feeling overwhelmed and alone. Professional services to buyers are almost always completely free, so give me a call and get answers to your tough questions.
And here's the biggest question of all:
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Are you working with a Buyer's Broker?
You should be. The sellers have a Listing Broker working for them; shouldn't you have a professional on your side promoting your best interests? Best of all, it's almost always completely free! Give me a call to learn more about the benefits of working with a "Buyer's Broker."|
FLORIDA PROGRAMS GIVE GRANT MONEY, LOW RATES TO BUYERS! |
Buying a home is an exciting time in one's life. Making the smart move of choosing a REALTOR® is your first step to ensuring that your new home and community meet your needs. My services and experience range from helping you find financing to helping you find the home that best suits you and your family. For your convenience, I also provide listings by email. I pride myself on repeat business and hope you'll come to understand why.
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**Buyers: If you're not prequalified, read this 1st!**
Before you start looking
Closing Costs
- Assure that you see all the properties in the area that meet your criteria.
- Guide you through the entire home buying process, from finding homes to look at, to getting the best financing.
- Make sure you don't pay too much for your new home and help you avoid costly mistakes.
- Answer all of your questions about the local market area, including schools, neighborhoods, the local economy, and more.
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What should I do if I see a house I like For Sale By Owner?? |
- Check your credit rating. Straighten out any errors before its too late.
- Determine a comfortable monthly budget for your new purchase, including down payment and monthly payment.
- Find a loan program that meets your needs and get pre-qualified (preferably pre-approved).
- Choose a REALTOR® that you trust and who understands your needs.
Find out about new increased financial aid for low & middle income home buyers!
- Determine what neighborhood best matches your needs.
- Identify important features you need your new home to have.
Closing Costs to Expect:
- Lender fees include charges for loan processing, underwriting, preparation and establishing an escrow account.
- Third-party fees include charges for insurance, title search, and other inspections such as termites.
- Government fees include deed recording and state & local mortgage taxes.
- Escrow and interest fees include homeowner's insurance, loan interest, real estate taxes, and occasionally private mortgage insurance.
Find out how much your closing costs could be.
Eleven handy calculators to help answer real estate related financial questions.
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Familiarize yourself with these popular loan products:
- Fixed-rate mortgages: Principal and interest payments are fixed for the life of the loan, be it 10, 15, or 30 years.
Possible candidates: Those who want regular payments; plan to stay in a home for a long period of time (five years or more); and want to lock in interest rates while they’re very low.
- Adjustable-rate mortgages (ARMs): Lenders offer multiple ARM products and some loans, called hybrids, begin as ARMs and convert to a fixed rate after a certain period of time (two, three, five, seven, or 10 years). “These products aim to combine the best attributes of fixed and adjustable loans,” says Doug Perry, senior vice president of Countrywide Home Loans Inc. in Calabasas, Calif. Interest rates and monthly payments typically are lower than those of a fixed-rate mortgage, but can adjust up or down at the end of the rate term, depending on the type of ARM it is and what financial index the loan is tied to. To make ARMs even more consumer-friendly and flexible, some lenders offer products that feature flexible payment options—minimum payments, interest-only payments, and 30- or 15-year payments (which allow borrower to pay off the loan as if it were on a 30- or 15- year schedule).
Possible candidates: Those who want to maximize buying power; desire smaller house payments to pay off other debts or spend dollars elsewhere; want lower monthly payments for the initial period of a loan; expect to move or refinance before initial rate ends; or expect income to rise in coming years.
Tinucci has found that 5/1 ARMs (where the rate is fixed for the first five years, and then becomes an adjustable-rate mortgage in the sixth year) work well for many of his first-time Chicago condo buyers. “First condos usually are stepping stones to bigger places and many of my first-time buyers are transient. Lately, many have been staying in their place for just a few years and then moving to the suburbs once they have kids. That’s when I might think of a longer-term—maybe a fixed-rate—product for them,” he says.
- Interest-only loans: Payments consist of only interest for the first five to 10 years of the loan. After the interest-only period, borrowers have 20 to 25 years (depending on the loan terms) to pay off the principal plus interest.
Possible candidates: Buyers who want greater short-term cash flow; intend to refinance or move within a few years; want to qualify for a more expensive house; have irregular cash flow (real estate practitioners, for example) or income that is tied to bonus income; live in rapidly appreciating areas; wish to divert extra cash to other investment property, retirement funds, etc.
Tinucci says interest-only loans are a hot product because borrowers have the option each month of making an interest-only payment or also of paying down principal. “It’s good for people with fluctuating incomes. When it’s famine time, you pay interest only and when it’s feast time, you pay toward principal.” Some of the dangers of this type of loan are that if you only make interest payments, the principal does not decrease so you don’t build equity unless the home appreciates; and you could potentially end up owing money when you sell if the house doesn’t appreciate. Also, at the end of the fixed interest payments, you have to start paying the principal, pay a lump sum, or refinance.
- No downpayment loans: Allows financing of the entire purchase price of the property, plus closing costs.
Possible candidates: Those with good credit but little savings; first-time buyers who have trouble saving a downpayment; those with money tied up in investments they don’t want to liquidate for a home purchase. The downside of this type of loan is that you will pay higher interest rates because of the higher risk of these loans. You also have to factor in the monthly cost of private mortgage insurance.
- Low downpayment loans: Allows a low 3 percent downpayment that doesn't have income restrictions or first-time homebuyer requirements.
Possible candidates: Those with good incomes but limited savings; those who want a larger mortgage to buy a bigger home; those who want the downpayment to come from personal savings, gifts, or loans from relatives or others.
Perry notes that low downpayment options are helpful to borrowers in rapidly appreciating areas, such as California. “Many people are diligent savers, but they’re unable to save at the same rate of appreciation. It’s where these loans come into play and help fill a gap.”
- Reverse mortgages: Elderly or retired property owners can tap their home equity for expenses and increase their monthly income; rather than paying the lender a monthly payment, the homeowner receives money from the lender; mortgage is repaid from the home’s equity when occupants sell the property, move out permanently, or die.
Possible candidates: Senior citizens over the age of 62 who wish to stay in their home and use the equity for things such as living expenses, medical expenses, home repairs, long-term health care, and other expenses. It’s often an option for people who are house-rich but cash-poor.
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