How do you know? Contact a mortgage loan person and get PRE-APPROVED for a mortgage loan. Only then will you KNOW how much money you can borrow and what you can afford. No more guessing or wishful thinking.
Get a letter of pre-approval from the loan person, and give a copy to your Realtor. Now you and your Realtor know your price range -- a major time-saver -- and sellers know you are financially able to buy their houses and won't waste their time. NOW you are ready to look at houses.
If you intend to pay cash (your own money -- no loan involved) be sure you have the cash on hand to close the sale.
Who to contact about a mortgage loan: Your choice, but do business with local lenders whenever possible! Banks, credit unions, mortgage loan companies -- we have them all right here in Americus and Ellaville -- all competing for your business.
Realtors want to help you. Lenders want to help you, but their decision depends on your ability to repay a loan.
Sellers want to know: Is this buyer able to buy my house? Can I take my property off the market while this buyer's loan is being processed?
OK, you have been pre-approved. Let's go look at some houses. The more your Realtor knows about what you want, the better he or she is able to help you.
Two ways to relate to your Realtor -- customer or client.
You are a customer if your Realtor is merely showing you properties with no obligation other than to be truthful with you. You are a client if you and your Realtor have signed an agreement that says you are working with that Realtor exclusively and he or she is representing you as your agent.
If you are a client, the Realtor may advise you about a property you are looking at, including advice about the condition of the property, the surroundings, a reasonable price to offer for the property and the terms and conditions of your offer. In general, the Realtor acts as your agent and negotiates in your behalf with the seller.
What is a Realtor? Why is this important to you? A Realtor is a licensed real estate agent who is a member in good standing of the National Association of Realtors. The word Realtor is a protected trademark. It tells you that the Realtor has met, and continues to meet, the requirements of the NAR including continuing education.
Realtors must adhere to the NAR Code of Ethics, a comprehensive body of ethical business practice. The Code of Ethics ensures that Realtors maintain a high level of honesty and integrity in the practice of their profession. Always seek to work with an agent who is a Realtor.
Who pays the Realtor? Who gets the sales commission money? The sales commission, or brokerage fee, is paid to the broker or brokers involved in a sale of real estate. The broker, in turn, shares the commission with the agent or agents involved in the sale.
The Purchase and Sale Agreement: a legally binding contract. Go over your offer carefully with your Realtor. Make sure you understand your obligations if your offer is accepted by the seller. When it is, at that point it becomes a contract, and you are legally bound to perform according to its terms. The same is true of the seller, and of the broker or brokers and their agents involved in the transaction.
Now you must apply for a mortgage loan, meet the requirements, and get the loan. Help your lender help you by providing all requested information. Remember: A local lender probably will have a more personal interest in helping you reach your objective, and will be more cooperative with you and your Realtor than an outsider who may never meet you in person.
Inspection and requesting repairs. What are your choices? An important decision is whether or not to inspect a property you want to buy. Also, who will do the inspection? You, a friend, a relative, or a professional house inspector? The findings of the inspector may be critical to the outcome of your transaction. The seller may be more responsive if you have used a professional inspector.
Cooperation and follow-through will get you to the magic moment: closing the purchase. It takes you, your Realtor, your lender and the closing attorney all working together. For everyone involved, "time is of the essence." That means all parties must be diligent in meeting their responsibilities to bring the transaction to a successful close.
Your Realtor's happiest moment: Handing you the keys to your new home.
