FAQs
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The very first step of the home buying process is to get a pre-approval letter from a lender stating how much you are qualified for, right down to the dollar. It's important to ask your potential lenders some questions to make sure they are a good fit for you, and that the terms of what they’re presenting to you work for you now and in the future. A pre-approval is only valid for 30-90 days, so while you can start talking to lenders, you’ll want to wait on getting that pre-approval letter for when you’re ready to begin viewing properties.
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A pre-approval is a preliminary evaluation of a borrower's creditworthiness by a lender to determine the maximum amount of money they are willing to lend for a mortgage. Essentially, it's a conditional commitment from the lender to the borrower.
During the pre-approval process, your lender reviews your credit history, income, debt-to-income ratio, employment history, and other financial information to determine whether you are qualified for a loan and, if so, the maximum amount you are eligible to borrow.
It's important to note that a pre-approval is not a guarantee of a mortgage loan, and borrowers will still need to go through the formal loan application process, including providing additional documentation and undergoing a home appraisal, to receive final approval for the loan.
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It is best to have your pre-approval set before you begin touring homes. Once you receive your formal pre-approval, you can shop for homes within your price range, and sellers will know that you are serious about buying. Without a pre-approval, it is difficult to make a serious offer, which is very frustrating if you have found your dream home! In addition, sellers are going to great lengths to have their homes be ‘show ready’, and we want to respect their time and effort by ensuring we are present as serious buyers.
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As a buyer, working with a Realtor is no cost to you. Home sellers are responsible for paying the commission related to the sale of their home. However, once you have your offer accepted, you will want to have extra money set aside for a home inspection (approx. $350-$500), lawyer fees for title transfer and mortgage management (approx. $3000), and any minor repairs or changes you may wish to make to the home once you move in. Also, don’t forget to factor in home insurance and other bills that will come with owning a new home.
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Closing costs are payments made near the end of a real estate transaction. They vary for buyers and sellers, but in general include costs associated with lawyers, Realtor fees (if you’re a seller), and home repairs.
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Your Realtor should be both savvy in the real estate market as well as intuitive and open in working with clients. Your Realtor should understand you and your lifestyle, and guide you only based on what is best for your personal situation. They should also be able to be an exceptional marketer, presenter, and negotiator for you, while helping you understand every step of the buying or selling process. Above all, you should feel that you can trust your Realtor to be honest and open with you, and ensure that your home journey is enjoyable for you.
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Meeting with your Realtor to obtain an up-to-date market analysis is the best way to determine your home’s current market value. Your Realtor should use data from recent sales and current active listings in your area, and be able to adjust the price against these comparables based on any value or detractions your home may have. This process requires experience and expertise, and if done properly, should leave you with a documented list of comparables to help you understand your home’s assessment. If you have any further questions about this process, please reach out!
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Selling your home can definitely cost you some money upfront. Repairs and paint are two common items that can cost you now, but will go a long way in impressing potential buyers. Realtor fees vary between agents and brokerages. However, do not choose your Realtor based on price alone - make sure to choose someone you feel will give you extensive, honest advice and who you can see yourself working with closely. Upon closing, you will need to pay for lawyer fees as well as any repairs required prior to the new buyers taking possession.
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92% of For Sale By Owners (FSBO’s) end up listing with an agent, and buyers prefer accessing homes that are professionally listed on the market (NAR, 2022). It is true that anyone can take photos of a home and post them on the internet, but effective real estate sales and marketing is much more than this and scheduling showings. Real estate agents have the knowledge and experience to handle all aspects of the sale process, including marketing, negotiating, and legal paperwork. In addition to saving you time, Realtors have access to a wide network of potential buyers, which can help sell the home faster.
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Closing costs are payments made near the end of a real estate transaction. They vary for buyers and sellers, but in general include costs associated with lawyers, Realtor fees (if you’re a seller), and home repairs.
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Your Realtor should be both savvy in the real estate market as well as intuitive and open in working with clients. Your Realtor should understand you and your lifestyle, and guide you only based on what is best for your personal situation. They should also be able to be an exceptional marketer, presenter, and negotiator for you, while helping you understand every step of the buying or selling process. Above all, you should feel that you can trust your Realtor to be honest and open with you, and ensure that your home journey is enjoyable for you.