Whenever you buy or sell real estate and you think - like millions of other people out there - that you don't need a real estate agent you may be needlessly contemplating the elimination of an important service that could be beneficial to you. Most people who buy or sell homes, generally think that a real estate agent is a waste of money. Similarly, some of those same people who choose to buy a new home think that real estate agents only add to the cost of purchasing the home.
The smart home buyer knows that the service(s) provided by a professional real estate agent could be the difference between a problematic and agonizingly long transaction and one that proceeds to closing smoothly and efficiently. Contrary to the belief of many potential home buyers, a smart home buyer knows that real estate agents are normally paid by the seller, not by the buyer, although there are a number of buyer's agents that a home buyer can hire.
As a buyer, you’ll get to work with a professional real estate agent without really having to pay for it yourself. The policies can vary greatly from state to state and company to company, which is why you should always check any paperwork or contracts that are provided to you to ensure this is the case. When you are interviewing agents, make certain to ask about any type of fees as well.
The smart home buyer will inquire about fees s/he is responsible to pay, where the agent's interest is placed; what s/he can expect from the real estate agency; what impact the appraisal report will have on the offer made and accepted; How a particular mortgage financing program will affect the mortgage repayments and whether an engineer's report or a home inspector's report is more suitable for the type of home s/he's about to purchase, among other inquiries.
A lot of real estate agents out there may work with both buyers and sellers, although most specialize in working with either the buyer or the seller. If you are buying a home, make sure that the agent you choose has prior experience working with buyers and transactions of all types. This way, you can count on your agent to be there when you need him/her the most - especially if you don't have a large down payment (15% to 20% of the purchase price).
The smart home buyer knows that they are several mortgage financing options available through variuos sources, including commercial banks, credit unions, mortgage lenders that specialize in government programs like fha and VA (for veterans or veterans and their spouses), conventional first-time-home-buyers programs, PMI, programs and many State-subsidized programs with which to finance the home purchase.
If you are interviewing a real estate agent and he or she isn’t familiar with down payment assistance programs, you shouldn’t hire their services. Agents who aren’t familiar with these types of programs generally aren’t on the level, or they may lack the experience necessary to help you purchase the home of your dreams. You can also make a list of real estate agents that you can interview based on referrals from friends, neighbors, and even relatives. Lender referrals are normally a great choice as most lenders have worked with their recommendations in the past and both are already familiar with each other. Choosing a lender's referral can also prevent you from encountering any obstacles or surprises.
The smart home buyer knows that long established relationships between lender and broker signify the existence of both entities doing business in their respective fields for a reasonably acceptable period of time and not a recently opened business that could close shop before the transaction closes. In addition, a satisfied friend or relative will normally have his/her interest at heart and therefore will not steer him/her in the wrong direction. The smart home buyer knows that ultimately the decision is his/hers to make and s/he would have done the necessary preliminary work (home buying research) which should correlate with all the positive referrals received.
Choosing a real estate agent to working with is an easy task, providing you know what to look for. If you take things one step at a time and carefully make a decision, chances are that you’ll end up with an agent who has the experience you want. You should always be careful when you choose, and never rush the process. Real estate agents are easy to find, although finding one who fits your needs and has your budget in mind is a little tougher to locate. When you make that final decision, you should always choose an agent who has your best interest in mind - and isn’t just after the money.
The smart home buyer knows that many real estate agents advertise their services and their client's products in the local newspapers and an increasing number has a presence on the Web. More importantly, the smart home buyer knows that the area in which s/he wishes to purchase may be more familiar to real estate agents with offices established in that community and therefore may be better able to provide the kind of history about the neighborhood in general and the immediate neighbors in particular, because one of the best ways to have his/her interest protected is to insure that the long-term prospects for home ownership in the area are excellent.
Mortgage Financing Information:
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FHA Rehabilitation Mortgage