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"Questions that buyers frequently asked." |
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Q.
How many homes should I plan to view and how should I make
the final decision? |
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A. Generally you should view a number of
homes so you can become familiar with what you can expect to get for
your money. When you find a home you really like, it's a good idea
to go back and look at it at a different time of day. This will give
you greater insight into what it will be like living in the home
full time. |
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Q. How can I check my credit rating before I apply
for a mortgage? |
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A. Your credit rating is
based on a combined score generated from three credit bureaus who
look at your credit history, amount of credit available, and recent
inquiries to determine what's called your FICO score. A smart way to
go is to have your Bank check your rating
for you and, if appropriate, suggest ways for you to improve your
credit score. For a small fee, you can get your score or review your
credit report by going online to
www.myfico.com or contacting the credit
bureaus directly at:
Equifax,
www.equifax.com (1-888)
766-0008
Experian,
www.experian.com,(888)
397-3742
TransUnion,
www.transunion.com, (800) 916-8800 |
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Q. Why should I consider paying points? |
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| A. Buyers often choose to pay a one-time charge called mortgage
"points" in exchange for a lower interest rate. Usually paid at
closing, each "point" costs 1% of the mortgage amount, or $2,000 on
a $200,000 loan. The lower rate reduces the monthly mortgage
payment, and points paid in conjunction with the purchase of a home
are generally tax-deductible in the year they're paid (see tax
advisor). Monthly savings will often exceed what was paid in points
in just a few years’ time. |
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Q. What is the purpose of an attorney review? |
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| A. In states where the real estate agent writes the contract, there
may be an attorney review period. This specified period allows the
attorney to cancel the contract or request it be altered. Both buyer
and seller would then have to agree to the revised contract in
writing. During this period, either party may void the contract
without penalty. |
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Q. What is title insurance and why do I need it? |
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| A. Basically, title insurance assures that you have clear title to the
home you’re purchasing. A title search is the primary component of
“due diligence,” a process that will be started either by your
attorney, if you are using one, or by the title company you choose.
The title search determines whether the seller actually owns the
property and if there are any claims against it |
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Q. What happens if the house I want to purchase does not appraise at
the amount expected? |
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A. If the house doesn’t appraise at the
amount expected, other alternatives are typically found. A second
appraisal may be sought, the buyer may be willing to put more money
down, the seller may adjust the price or offer other concessions, or
the two sides may negotiate to split the difference between them. |
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If your house is currently listed with another broker
this is not intended as a solicitation of that listing. |
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REALTOR® -- A Registered collective membership mark
that identifies a real estate professional who is a member of the
National
Association of REALTORS ® and subscribes to its
strict Code of Ethics. Inquiries regarding the
Code of Ethics should be directed to the
board in which a REALTOR® holds membership.