Buyer Questions, Answered
Do I need an Agent to Represent Me?
First, you never want the same agent representing both sides. A Listing Agents goal is to ensure that the Sellers are protected at every turn, terms are maximized to their advantage and they are getting the highest price for their house/property possible. None of those things benefit a Buyer. A Buyer needs direction of pricing for the neighborhood, suggestions on terms of the offer, what Inspectors are best, making sure you get repairs negotiated, what Lenders are best and the list goes on! A Listing Agent can't help a Buyer with any of those questions without violating their responsibility to the Seller or negating the Sellers leverage at one point or another throughout the process. When a Buyer contacts me to view/purchase a home that we have listed, I always have a Buyers Agent from my Team assist them. That way, they can get the full benefit of having a separate agent work for their benefit at every step of the purchase process. My Team Members and myself are all Accredited Buyers Representatives so we've been specifically trained on how to best represent Buyers and the processes associated with the purchase of a home. I'm sure there are plenty of people who have purchased a home and had a miserable experience. It does NOT have to be that way. A good agent can educate you every step of the process and make sure you avoid the pitfalls that get in the way of a great Buying Experience!
Do I need to get Pre-Approved before looking at homes?
Yes, we always advise getting Pre-Approved through a local, reputable Lender. A local Mortgage Broker will evaluate your credit scores and income to determine the Price Range and Interest Rates for which you might qualify. The Pre-Approval Letter is often required by Homeowners in order to view a home and is always a requirement for submitting any offers.
How much money will I need for a Down Payment?
Your Down Payment often depends upon the type of loan you are applying for. For example, an FHA loan requires a minimum of 3.5% down, VA offers loans with 0% down and Conventional Loans offer programs ranging from 5% to 25% down payment and greater. Your Down Payment can also be affected by your Credit Score and Debt to Income Ratio, which a qualified Lender will be able to evaluate.
Do I need to get a Home Inspection?
Yes, we always suggest a Home Inspection. Even New Construction homes can have defects. An Inspector will ensure your home is built to code and that everything works correctly prior to move¬ in. A traditional Structural/Mechanical Inspection will evaluate the Foundation, Walls, Roof, Plumbing, Electrical, HVAC, and Appliances. We also suggest inspecting Pools, Irrigation System, and checking for Termites and other wood destroying insects
What is a MUD Tax?
Specifically, a MUD stands for a Municipal Utility District and is set up to provide and maintain water and wastewater services and drainage facilities within it's area. It's typically paid for through your property tax, but is usually also the entity you pay for your water and wastewater services. While they are usually standard with most newer neighborhoods, they are also found in some older neighborhoods, though the tax is usually less in the older subdivisions. A MUD tax may add between $0.25 to $1 of tax per $100 of the assessed value of your home. If an average tax rate in the Greater Bay Area may range from 2.5% to 2.8% so a MUD Tax would increase that from 2.75% to 3.8% in some cases!
How long is the average Closing Process?
The average time it takes to purchase a property is 30 to 45 days. If a property is being purchased with cash, the closing can take as few as 10 days. However, unique situations with Buyers and Sellers can also require longer closing times such as 60 days. This is certainly an aspect of the contract that is important to both parties and can be negotiated.
Do I need to sell my home before buying a new home?
Most people will need to sell their home as part of purchasing a new home because a Lender will not loan money when someone has an existing home loan. This process is called a “Contingency”, where the purchase of the new home is “Contingent” upon the Sale and Funds from the home you’re selling. This is a simultaneous transaction allowing you to seamlessly transition from one property to another. In the event that you qualify for 2 mortgages or you have a large amount of equity in your existing home, a Contingency is not necessary. Buyer Resource Articles Buying a home can be complicated, but here are some valuable resource articles that may be helpful for you as you are going through the home buying process. These articles cover the basics from understanding how real estate agents assist with the process, analyzing your budget and financial status, dealing with inspections, making an offer for that home and preparing for the paperwork process that goes along with this life changing financial decision. For assistance or quick answers to your questions, Call us at (281)-241-6491 or Email us! <div class="elementor-element elementor-element-0849a86 elementor-widget elementor-widget-heading" data-id="0849a86" data-element_type="widget" data-e
