 | | | Frequently Asked Questions |
| | | | What if I need to sell my home before I buy a new one? |
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| | | To put yourself in the best negotiating position before you find the new home you want, hire a qualified real estate agent
to help you put your home on the market.
Once you write an offer on a new home, your offer will be “contingent” on the sale of your home. A buyer in this position may not have the same negotiating power as one whose home has already sold (or at least has an accepted offer).
The seller may be hesitant to accept you offer because there are too many things that must happen before the sale can close.
Talk to your agent about a
Windermere Bridge Loan.SM |
| | | | How does my offer get presented to the seller? |
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| Your agent will call the agent who is the listing agent for the home you have chosen. They will make an appointment with the seller to present the offer.
Your agent is there to explain the details of your offer and negotiate on your behalf. |
| | | | What happens if I offer less money than the asking price? |
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| | | If you offer less money, the seller has three options. They can accept the lower offer, counter your offer or reject it
completely.
Remember that there could be another buyer out there who is also interested in the home you’ve chosen. If they happen to write an offer at the same time you do, the seller will have two offers to compare. There are usually many aspects or each offer to consider, but ultimately the seller will want to accept the best and most complete offer.
In active markets, homes often sell for their listed price. In hot markets, there may be many
buyers vying for the same house, which sometimes drives the selling price above the original listed price. A real estate professional can help you plan your strategy, based on your current real estate market. |
| | | | What is the difference between prequalified and preapproved? |
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| | | These terms refer to your status in the loan approval process. Prequalification
is a determination of your probable ability to obtain a loan. To become prequalified, meet with a loan officer or mortgage company. They will help you determine the price you can afford, based on your monthly income and your current debts, as well as the cash you have for a down payment.
Preapproval
means that the mortgage lender has already verified and approved your credit and employment. Obtaining preapproval early in the process will make your offer more attractive to the seller. |
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| | | | When you write the offer on the home you’ve chosen, you will be
expected to include an earnest money deposit. This deposit is a sign of your good faith that you are seriously interested in buying the home. |
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| What is earnest money? |
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| | | Earnest money is a “good faith” deposit submitted with your offer to show the sellers that you are serious about purchasing their home. Earnest money is a required part of an offer. There is no set amount that is required, but the money eventually becomes part of the purchase, and will show as a credit to the buyers on the settlement
statement drawn up by the escrow company. |
| | | | Where does my earnest money go? |
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| Once the buyer and seller have a mutually accepted offer, the earnest money is deposited into a trust account of the real estate
company or the closing agent (often the escrow company)
That deposit becomes a credit to the buyer and becomes part of the purchase expense. |
| | | | Can I lose my earnest money? |
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| Real estate contracts are
complicated legal transactions. This is another area where having a knowledgeable and professional agent is a necessity.
Rarely does the buyer lose the earnest money. Most often, if the transaction falls apart, there are circumstances beyond the buyer’s control that cause it to happen. However, if the buyer willfully decides that they no longer want to buy the house, and have no legal reason for rescinding their offer, then the seller has the right to retain the earnest
money. |
| | | | Is that all the money that’s involved?
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| Many lenders require the cost of the appraisal and credit report at the time of the loan application. However, these costs will be credited to your closing costs at closing. |
| | | | What are closing costs? |
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| Closing costs are charges paid to various entities during the real estate transaction. They can include escrow fees, document preparation fees, cost of an inspection and lender fees. |
| | | | What is a point? |
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| A point is equal to one percent of the loan principal. Some lenders charge points, in addition to interest and fees, at closing. |
| | | | What is title insurance? |
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| Title insurance protects against loss from any defects in the legal title, liens against the property or other adverse claims. The lender usually requires title insurance. | |
