Frequently Asked Questions
Should I talk with a bank before looking at homes?
The answer to the question is YES! Your first step is to have the bank help you determine how much home you are qualified to afford. This will save you wasted time looking at homes you can’t afford. A bank will pre-approve you so that you have a letter to submit to the seller showing you are qualified to buy their home.
Secondly, if you’re a first time home buyer then the bank will lay out your options as there are many first time home buyer programs available to you.
Thirdly, a bank will help layout your expected costs of obtaining a loan. These costs usually include points, your interest rate, closing costs, and other fees banks charge when creating a loan for you. A mortgage professional will explain to you about down payments, escrow accounts, pre-payment penalties, and other terms that lenders use in their legal documents.
Should I sell my current home before buying a new home?
There is no definite answer here. It will depend on your financial situation and other factors when making this decision. It may take several months for your home to sell depending on the market and demand for homes in your area.
If you need the home to sell in order to have the money for a down payment on a new home, then you can include this as a contingency clause in your purchase contract when submitting an offer on a new home. Or you could just wait altogether until your home sells but this may leave you homeless and needing to rent until you purchase a new home. Overall, you’ll have to talk with various parties to determine the best decision.
Should I have a realtor when buying a home?
Yes, there are many benefits real estate agents provide you that make the home buying process a smooth process. Every real estate agent is different and there are great agents out there who will do a great job helping you purchase a home. Treat it like a job interview where you ask prospective real estate agents a series of questions to screen them and make sure you are selecting the best agent to represent you in the home buying process.
At Team Foy, we believe in listening first to understand our buyer’s needs and then crafting solutions to make the buyer 150% satisfied. Our quick response time makes us stand out from the crowd and makes it easy on clients working with us knowing we are within contact any time.
Who pays the commission of real estate agents?
The seller always pays the commission unless otherwise noted in the contract. Therefore, if you are a buyer you get assistance from a real estate agent for FREE! Take advantage of this!
If you are a seller you will typically contract with a listing agent for a 6% sales commission. The commission is paid to the listing agent’s brokerage firm and if another agent brought the buyer, they usually split the commission receiving 3%.
As a buyer, you want to work with a purchase agent who will have your interests at heart. Since the listing agent has a fiduciary responsibility to represent the seller, the listing agent won’t have your best interests in mind.
Let us represent you as purchasing agents in a transaction. Call us today at 574-536-9218!