These are my top buyer FAQ frequently asked questions, especially helpful if you are a first time buyer
How do I know what price range I can afford in a house?
There are many resources on the web which will calculate your mortgage payment on a house at different lending rates, or you can call a mortgage broker and they will help you find out what you can afford. Always remember to allow for property tax, insurance and maintenance costs in figuring out what you can spend on a monthly basis for your house.
Once I start working with an agent, they work for me, right?
Technically, an agent works for the seller unless other arrangements are made. When you first meet with an agent, they should have you sign a disclosure form, which says that they have explained this to you. Although an agent is responsible to the seller of a house, this does not mean that they will not work hard to meet your needs and help you all they can in finding the right house at the right price.
What is a Buyer’s Broker?
A Buyer’s Broker represents you and your interests rather than the seller’s. Their job is to be your advocate and the agent’s primary responsibility is to you. You may have to pay extra for this. Also you do have to have an explicit discussion, arrangement and contract with your agent confirming this status. Make sure that you put it in writing.
Should I apply for a mortgage even before I find the house I want?
It is an excellent idea to get Pre-approved for a mortgage early in your house search. When you find a house you like, your offer to buy is much stronger if your agent can assure the seller (backed up by documentation) that you will not have a problem securing a mortgage. An actual mortgage application requires a specific house/address and so cannot be done until after the owner accepts your bid. Note: A Pre-qualification is NOT the same as Pre-approval, only a Pre-approval will be accepted.
Once my bid is accepted, what happens then?
Included in your Offer to Purchase dates will be built in for you to have some time to get a mortgage commitment and to have an inspection done. When these are done, a Purchase and Sale Agreement will be written up and will cover all terms of the purchase/sale including closing dates. Your agent will be able to go over all this with you on an individualized basis and explain any unclear areas.
What is involved in a Home Inspection, and why is it done?
Every house that is not new and has been lived in will have minor items of note. Once you have found a house you like and have agreed on a price with the seller, you have the right to have the house inspected by a licensed home inspector. If you have this done (which I always recommend unless market conditions frown upon it) you pay the inspector. The purpose of a home inspection is to identify major problems areas in the house, such as with the roof or heating system or safety features. It should not be used as a “laundry list” for the seller to address every item that comes up. However I have used a list to present a basket of deferred maintenance items that could add up to big bucks. If there are areas of concern to you, your agent will help you negotiate with the seller to address them. This may involve a change in the house price or having repairs made prior to closing.
Do I need a lawyer?
Many first time homebuyers use a lawyer during their buying process to review the Purchase and Sale Agreement, answer questions along the way, and be present at closing to represent their interests and explain forms to them. If you do not feel a need for this, I do recommend having a lawyer at least review your Purchase and Sale Agreement before signing it. It is a lengthy and detailed document that is legally binding, and once you sign it you cannot say you’ve changed your mind on some point or didn’t understand something and want to change it now.
Why should I use you, Mike Hunter, to buy my house?
I will take an active role in finding you the right house. Every aspect of purchasing your new home, from pricing to negotiations will get my highest level of attention. In my field, reputation is everything … I want a happy client who would recommend me to their friends and the only way I know how to do that is to provide top service. Communication, effort, and attention to detail are what you’ll get when you buy with me.
I’m friendly, approachable and an expert on Metrowest Boston real estate. Specializing in Sudbury for 20 years. He knows the Sudbury market and has represented many happy Sudbury households to buy or sell. Please feel free to forward his profile to others you feel would benefit from his services.
Call Mike 978-580-1069 today.
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Mike Hunter … expert Metrowest Boston real estate advice and simple results-driven transactions
