Question 1

SHOULD I GET PRE-APPROVED BEFORE LOOKING AT HOMES?

Accepted Answer

The simple answer is yes, you should get pre-approved before looking at homes as it benefits all parties involved. As a buyer, it streamlines your searching process and allows you to look in the right neighborhoods and price range for your dream home.

Secondly, Realtors prefer to work with borrowers that have a pre-approval letter because it gives them the confidence that the deal will get closed, and it also allows them to use their expertise to find the right home for you.

Lastly, it gives you a competitive advantage over other buyers that do not have pre-approval letters, because sellers are more likely to accept an offer from a buyer that has a letter.

Question 2

WHO TYPICALLY PAYS THE REALTOR FEES?

Accepted Answer

The seller is responsible for paying both the buyer and seller's Realtor fees. Realtor fees often range from 2.5% to 3% for each listing agent and the buyer's agent. This totals between 5%-6% in Realtor fees paid by the seller at closing from their net sale proceeds.

Question 3

WHAT COSTS ARE ASSOCIATED WITH HOME OWNERSHIP?

Accepted Answer

There are required monthly/ annual recurring home ownership costs such as:

• Property Taxes – cost depends on city/county (ex 1.2% of value)

• Homeowners Insurance – varies depending on location and home size (ex: $750/year)

• Utilities – Gas/electric, water, sewage, garbage.

Some costs could possibly arise and optional home costs such as:

• Maintenance – (Sewer & drain service, electrical repair, plumbing repair, termite/pest prevention, landscaping, HVAC maintenance, interior/exterior paint, roof repair, etc.)

• Cable/Internet – (Optional)

• Earthquake Insurance

• Homeowners Association (Optional – depending on home location)

Question 4

IS HOME OWNERSHIP FOR EVERYONE?

Accepted Answer

Homeownership may not be for everyone, but it is essential to compare at least renting versus homeownership to understand your options. There are many different factors to consider and questions to ask yourself before determining is homeownership:

A Loan Officer will be able to help you analyze your scenario and help you understand the pros and cons of each option. Below are a couple of questions to think about:

• Where do you see yourself living, and for how long?
Suppose you only plan on living in a specific location for only a few years. In that case, it may be easier or safer financially to rent as you may not benefit from owning a home for that short period if you sell the property once you move. A factor to consider is that the seller often pays the Real Estate Agents commissions around 5% in Atlanta (2.5% buyers agent, 2.5% sellers agent). Your property may not appreciate by the 5% over only a few years to cover that cost to sell, making your cost of ownership higher.

• Comfortability with Homeownership costs
The most important thing is to be comfortable with each month's monthly mortgage payment, including property taxes, homeownership, and possibly other unforeseen costs associated with homeownership. You want to ensure not to push your limits on your monthly payments. Even if you “qualify” for a particular loan amount, you may want to start with what monthly payment you are comfortable with and back into a Purchase Price/ Loan Amount. Unforeseen items, such as roof repairs, termites, plumbing and electrical, repairs, etc. It is essential to have a safety net for these items.

Question 5

WHAT ARE THE BASIC STEPS INVOLVED IN SELLING YOUR HOME?

Accepted Answer

The first step in selling your home is contacting us. We will walk you through the process of selling your home and will advise on a targeted listing price. Then we will then determine what steps are needed to ensure your home is in the best condition possible to receive the highest offer price. We will go over all necessary steps, including fixing or updating certain items before listing, staging the home, marketing, and opening houses. Schedule a consultation here (cstewartgroup.com/book-online)t(cstewartgroup.com/book-online)o get a detailed outline of selling your home.

Question 6

WHAT ARE THE BASIC STEPS INVOLVED IN BUYING YOUR HOME?

Accepted Answer

The first step in buying your home is doing the proper research. You need to find out if you are an excellent candidate to become a homeowner. You can start by looking at some of the home prices in your area and the estimated housing expenses that come with owning a home (See: What costs are associated with owning a house).

Next, you should evaluate your credit score and ensure that it is sufficient. Poor credit history can result in denying a loan or a significant hit to your mortgage costs. After you are done conducting research, you should begin to narrow your search to find out what homes fall in your price range. Much time can be wasted searching for homes that are unobtainable.

Next, you should find a Realtor that fits you and is knowledgeable of the area. Realtors can assist in the process and further narrow the search for your dream home. After finding the right realtor, you should seek a lender to provide you with a pre-approval letter. This letter will give you peace of mind when searching for potential homes in the area and give the seller confidence that you will be able to go through with the deal.

After you lay all of the groundwork, you can begin to shop for a home seriously.

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