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There are many questions that come up when buying or selling your home. Since Robbins Realty specializes in North Metro Atlanta Real Estate, we have answered a list of these common questions. For more help, fill out our Our Free Home Value Report and we help you more with buying or selling your home in the Georgia real estate market.
- What is a Competitive Market Analysis (CMA)?
- What is Multiple Listing Service (MLS)?
- What is a Buyer's Agency Agreement?
- What is Dual Agency?
- What is the difference between a loan and a mortgage?
- What is a pre-approval letter?
- Who pays for a home inspection?
- What is earnest money?
- How much money do you put down on a house?
- What are the differences between mortgage pre-qualification, pre-approval and final loan approval?
- After you are pre-qualified, do you need to do anything else with your lender prior to making an offer on a house?
- What are closing costs?
- How many different fees are included in
- Who pays for closing costs? And, just how much are closing costs?
- I am looking at new subdivisions and at some other resales in the area. The agents are really nice, so do I still need my own agent?
- Should I spend the money to have a home inspection?
- What is an appraisal?
- I want to buy a home. Where do I start?
- What is a Sellers Disclosure?
- When I find the house I want to buy, how do I know how much to offer?
- What is homeowner's insurance? Do I need to buy it?
- What is a FHA Loan?
- What is a conventional loan?
- My lender says that I need to have an escrow account. What is that?
- What is PMI and why am I required to have it?
- What is a home equity loan?
- What is a foreclosure?
- What is a Survey? Do I need to get one?
- Who pays the Realtor?
The most reliable indicator of a home's value is what similar homes sold for in the past. A CMA is a comparison of the prices of recently sold homes that are similar to the "subject home" in terms of location, style, condition and amenities. Click Here for a Free Home Value Report
MLS is a computer database for Realtors in a metro area. The database is compiled of detailed information on homes both for sale, under contract and sold. This is a tool Realtors use to produce a CMA, search for properties that a buyer is looking for, and to market their listings to other Realtors.
A Buyer's Agency Agreement is a document signed by the agent and buyer. It represents a principal-agent relationship in which the broker is the agent for the buyer, with fiduciary responsibilities to the buyer. The broker represents the buyer under the law of agency.
When a Broker is representing both the Buyer and a Seller of real property. The broker is not acting in a "designated" agency capacity.
A loan is a sum of borrowed money that is generally repaid with interest. A mortgage is a conditional transfer or pledge of real estate as security for the payment of a debt. Also, it is the document creating a mortgage lien.
It is a letter from a lending source stating that based on the information regarding income, credit, job history, etc., that you provided to them, that you would be able to obtain a loan with terms stated in the letter. Get pre-approved now
Normally the buyer hires and pays for an inspector.
Money deposited by a buyer under the terms of a contract, as good faith money, to be forfeited if the buyer defaults according to the contract terms, but applied to the purchase price if the sale is closed.
There are 100% finance options available now, so some buyers (who are eligible for these types of loans) do not need any money to put down. Most buyers, however, put down 5-20% of the purchase price. There are so many "creative financing% options out there, that it is best to talk to your lender openly about your personal situation so they can find appropriate financing for your needs. Also, by putting at least 20% down, the buyer avoids mortgage insurance, which can save you a considerable amount on your monthly payment and over the course of the loan.
Pre-qualification is when the lender will look at a basic copy of your credit report and use the information you supply to determine how much of a mortgage payment you can afford based on your income. No account or employment information is verified. Pre-approval is subject to the appraisal of the property you have chosen to buy. Your credit information and accounts are verified. Final loan approval occurs when the property has been appraised, all documentation requested from the lender has been received, and all contingencies have been met.
No, but after the offer is accepted, it's imperative that you follow through with a lender and formally apply for a loan according to the terms of the contract. Then you will need to provide specific documents, depending upon the loan type that is chosen for you.
Closing costs are the miscellaneous expenses that are incurred during the loan process.
You may see these on the closing statement and your "good faith estimate": No, but after the offer is accepted, it's imperative that you follow through with a lender and formally apply for a loan according to the terms of the contract. Then you will need to provide specific documents, depending upon the loan type that is chosen for you. Closing costs are the miscellaneous expenses that are incurred during the loan process. Appraisal Fee, Credit Report Fee, Document Processing Fee, Loan Document Viewer, Flood Certification Processing Fee, Lender Underwriting Fee, Tax Service Processing Fee, Wire Processing Fee, Title Insurance, Title Exam Fees, Recording Fees, Attorney Fees, and Transfer Taxes.
The party who pays for closing costs is negotiable in the contract, but it is assumed that the buyer will pay for them unless it is negotiated in the contract for the seller to pay or help with a portion of them. The total costs could vary, but a good estimate is 2.8% of the loan amount. Ask your lender to be sure!
First of all, in virtually all situations, the buyer does not pay the commission. The seller pays for the services of an Agent working on your behalf. Generally, agents on site represent the seller (builder) and not the buyer. Without an agent working for you, you maybe missing valuable information regarding the transaction and you may be missing representation of your interests.
Yes! New or resale! The $250-$300 for a professional home inspection could be the best money ever spent on a house. Not only does the home inspector seek out any defects of the home, the inspector will often give you tips on maintaining and repairing your house. The best thing of all is the peace of mind of being informed.
An appraisal is an opinion of the value of the home you want to purchase. Virtually every lender will need an appraisal before the loan is approved.
- Find an Agent that you can trust. It is important to do this before you go rushing off looking for homes or you may end up with no representation. A reputable Realtor can recommend lenders, inspectors and can answer many questions for you throughout the buying process.
- Familiarize yourself with the mortgage process, pre-qualify with a lender, get your financial picture in focus and determine your budget. Now is not the time to buy a new car and open up lines of credit!
- Determine your housing needs, wants, and location, consider all of the various housing types, condo, single-family, and high-rise. Make an appointment with your Realtor to start looking.
Click Here for a Free Home Value Report
It is a questionnaire that the seller fills out that gives the buyer the history of the home.
The most reliable indicator of a home's value is what similar homes sold for in the past. Ask your Realtor to do a CMA of the neighborhood in where you are considering purchasing. You can take a look at various factors of the home and decide with your Realtor"s knowledge and the information you gathered. These factors may include location, condition, recent sales, competition, and other special circumstances such as a sale due to a divorce, corporate transfer, pre-foreclosure, or estate sale.
It is an insurance policy that combines personal liability insurance and hazard insurance coverage for a dwelling and its contents. You are generally required to bring a pre-paid policy to your closing to cover your new dwelling.
A loan insured by the Federal Housing Administration (of the Housing and Urban Development.) Note: There are certain loan limits. Check with your lender on the guidelines.
A mortgage loan not insured by the Federal Housing administration or guaranteed by the Veterans Administration. In other words no governmental agency approval is required for the lender, borrower, or property.
An account held by the lender to which the borrower makes monthly installments for property taxes, insurance and special assessments, and from which the lender disburses these sums when they become due.
Private Mortgage Insurance is required for most loans that exceed a loan-to-value of 80 percent. Private Mortgage Insurance insures the lender in the event that you default on your mortgage payment and the lender is forced to sell your property at a loss.
Home equity loans are basically the same as a mortgage though they are generally structured as a credit line secured against a portion of the appraised value of your home. The term "second mortgage" is used interchangeably. An advantage of a home equity loan is that you may be able to deduct the interest paid on the loan on top of the deductible interest from your primary mortgage.
A foreclosure is a legal procedure whereby a lender gains title or sells a mortgagor's after the mortgage holder fails to satisfy all or part of the unpaid debt. Essentially, due to lack of payments, the property is repossessed by the lender and then re-sold as foreclosed.A survey is measurement of land, prepared by a registered land surveyor. It is quite useful to have and generally recommended to have so you know where your lot boundaries are. Most lenders do not require you to have a survey prior to closing on the loan of your home. Be sure to ask your lender if a survey is required and ask your Realtor if one is available on the home (from the seller).
The seller normally pays the commission. However, if the property is not listed for sale through a conventional real estate company, this cost could be paid by the buyer. Generally, the agent who lists the house "for sale" and the agent who "procures the buyer," split the commission. The commission is paid at closing and taken out of the seller's proceeds.
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