FAQ

What is a Buyer's Representative?
The Buyer's Representative locates selected
properties for the buyer to preview, presents offers
authorized by the buyer and assists the buyer in
negotiating for acceptance of such offers. I will
actively look out for your best interests.

Why Pre-Qualify for a Loan?
Pre-qualifying for a loan makes you a strong potential buyer in the eyes of the seller. Pre-qualification approves you up to a certain mortgage amount before you look at your first home. Once you start looking, time will not be wasted looking at homes for which you are not qualified. You will be in a stronger position to make an offer as soon as you find a property w hich meets your criteria.

Selecting the best financing package which meets your budget is as important as finding property that meets your needs.

There are two major factors to consider in determining the listing price range you can afford:

1) Down Payment
Most loans require a down payment between 10 and 20 percent of the purchase price. If you are able to make a down payment of 25% or more, you may qualify for special mortgage programs offered by a variety of lenders.

2) Ability to Qualify for a Mortgage
Most lenders require that your monthly mortgage payment, including principal, interest, taxes and insurance, should not exceed 28% of your gross monthly income. They also expect your total installment debt (regular scheduled payments of 6 months or longer debt-car loans, credit card balances, etc.), including the proposed monthly mortgage payment on your new loan, not to exceed 36% of your gross monthly income.

In addition to your gross monthly income, lenders review your employment history, stability, and potential for increasing your income. They also evaluate any additional income, such as bonuses, commissions and child support.

They will request a credit report to verify your debt repayment, outstanding debt and available credit. They will calculate your assets, including checking and savings account balances, CDs, stocks and bonds.

What Kind of Closing Costs Should I Expect?
Closing costs typically range between 2% and 5% of your loan amount. These fees are due in cash at the time of closing, or, in some cases, can
be included in the loan.

Do I Need a Home Inspection?
Yes. Buying a home "as is" is a risky proposition. Major repairs on properties can amount to thousands of dollars. A building inspector looks for defects or other problems that may plague the new owner in the future. They represent the buyer and are paid by the buyer. The inspection takes place after a purchase contract between buyer and seller has been signed and escrow opened.

How Do I Find a Building Inspector?
As your Buyer's Representative, I will recommend several qualified professionals, or you can look in the yellow pages. Rates for the service vary depending on the scope of the inspection. Expect to pay $350 or more.

If you have any additional questions, please feel free to contact me.

Frequently Asked Questions When Buying Property