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The real estate world can be confusing, let Nicole help you find the answers you need to move forward with confidence! Below are some of our most frequently asked questions, If what you need isn't listed below please reach out with our contact page.
Frequently Asked Questions
How do I choose a realtor?
Check out their social media presence and see if this is someone you would like to work with. Whether you are buying or selling, you need to be able to trust your realtor. Read their online reviews and see what other people are saying about their experience. Ask friends and family who they recommend. I would love the opportunity to meet with you over a cup of coffee and discuss your real estate goals and see if we would be a good fit for each other.
What is the difference between a real estate agent, realtor and broker? Aren’t they all the same?
This is a great question! No, these are not the same. Real estate agents have a professional license to help people buy, sell, and rent real estate. They must work for a sponsoring broker or brokerage firm. Brokers are real estate agents who have completed additional training and licensing requirements. They can work independently and hire other real estate agents to work for them. A Realtor is a licensed real estate agent or broker who is a member of the National Association of Realtors (NAR). Members must comply with NAR's strict Code of Ethics.
What is the due diligence period?
The due diligence period is when a prospective buyer is able to inspect the property and also perform any additional inspections such as septic tank inspection, pool inspection, etc. The due diligence period is usually 7-10 days but can vary.
What is earnest money?
Earnest money is a good-faith deposit that buyers put down to show the seller they are serious about buying. The money is deposited after the seller has accepted the offer and is usually kept in an escrow account. On closing day, the buyer can apply the earnest money toward the purchase of the home. The amount of earnest money can vary from different markets but your realtor can advise you on how much to offer.
What are closing costs?
Closing costs for buyers include fees paid to the mortgage company for originating the loan, legal fees paid to the attorney who handles the real estate transaction, homeowners association fees, and pre-payments for homeowners insurance and property tax. Sellers generally pay real estate commissions and title transfer fees.
Do I really need a home inspection?
Absolutely! I tell my clients that this is such an important process when buying a home and should not be skipped. A thorough home inspection can reveal critical information about the condition of a home and its systems. This makes you aware of what costs, repairs and maintenance the home may require immediately, and over time. If a buyer isn't comfortable with the findings from the home inspection, then they can decide if they wish to terminate the contract and receive their earnest money back.
Are there other inspections that need to be done in addition to the home inspection?
This depends on the property you are buying, and this is something I discuss with my clients as we are looking at homes on the market. For example, if the home you are interested in is on a septic system, then I would recommend you have a septic tank inspection. Keep in mind that additional inspections need to be done during your due diligence period. Your realtor is your biggest advocate and is here to educate you and help!
Is a home inspection the same thing as an appraisal?
No, a home inspection and appraisal are not the same. A home inspection is a thorough examination of a home to determine its present condition and uncover any potential red flags. During the inspection process, a home inspector will examine the structure, roof, attic, basement, electrical system, plumbing, exterior and other items. An appraisal provides an estimated value of a home and is required if you are obtaining a mortgage loan to purchase your home. By law, appraisals are done by licensed third parties not connected with a mortgage company. To determine the value, an appraiser factors in the home’s location, its condition and the value of similar recently sold houses in the area.
How long does it take to buy a home?
The timeline for finding a house varies greatly from person to person. However, once you find a home and have an accepted offer, it usually takes around 30 days to close.
What is dual agency?
Dual agency occurs when a real estate agent works on behalf of both the home buyer and seller. In most real estate transactions, it is much more common to have separate agents represent each party, as this helps avoid the conflict of interest that can happen when an agent negotiates for both sides. As your listing agent, I do NOT participate in dual agency. In some states, dual agency is not even legal!
I am interested in purchasing a new construction home. Can you help me with this?
Yes! I can show you any home listed on the market regardless of which brokerage has the listing and this includes new construction homes. When you buy a new construction, the home’s builder is considered the seller, and the agent representing the builder is called the builder’s agent. Sometimes buyers will think if they go directly to the builder or the realtor in the sales office, they will save half the commission. This is not the case. There is no benefit in going directly to the builder. They will not discount or give you a rebate because you didn’t come with your agent.
Is a pre-qualification letter the same as a pre-approval letter?
No. The terms pre-qualification and pre-approval are not interchangeable. A pre-qualification is a mortgage approval based on self-reported information. It doesn’t verify a buyer’s credit score, income, or money in the bank. It’s an estimate only. A pre-approval is mortgage approval based on verified data. It uses credit reports, job data, and bank information to confirm how to approve your loan and for how much money. If you are ready to begin the homebuying process, then I recommend getting a pre-approval letter from a local lender. These are good for up to 90 days.
What is included in my monthly mortgage payment?
Your monthly mortgage payment includes the principal, interest of the loan, property tax and homeowner’s insurance.
What is PMI?
For homeowners who put less than 20% down, Private Mortgage Insurance or PMI is an added insurance policy for homeowners that protects the lender if you are unable to pay your mortgage.
It is not the same thing as homeowner's insurance. It is a monthly fee, rolled into your mortgage payment, that’s required if you make a down payment less than 20%. While PMI is an initial added cost, it enables you to buy now and begin building equity versus waiting five to 10 years to build enough savings for a 20% down payment.
What are mortgage points?
Mortgage points, also known as discount points, are fees a homebuyer pays directly to the lender (usually a bank) in exchange for a reduced interest rate. This is also called “buying down the rate.” Essentially, you pay some interest up front in exchange for a lower interest rate over the life of your loan.
Are there any first time home buyer programs in Augusta, GA?
Yes, there are! I work with a variety of different local lenders who offer different first-time home buyer programs. First-time home buyer programs are for individuals who meet certain income requirements, who are financing property in certain census tracts, or who meet other special requirements. Certain other restrictions may apply but your lender will explain this to you.
How much money do I need for a down payment?
The most common answer is 3 to 5% of the purchase price of the home. Some conventional loans require a 3% down payment. Veterans are eligible for a VA loan, which requires no money down. Properties in rural areas may be eligible for a USDA loan, which also requires no money down. A good loan officer will walk you through all of these options and help you determine which is best for your situation.
What kind of credit score do I need to purchase a home?
A 620 credit score or higher is recommended. This score will be compared with your debt-to-income ratio. As you probably know, a higher credit score offers better lending terms. Some lenders will approve buyers with a 580 score. Again, your loan officer will be your best source to give you an up-to-date answer for today’s current lending requirements.
How do I choose a lender?
I will always recommend using a local lender rather than online lenders. When you choose to work with a local lender, you are working with someone who knows and works in our community. Also, communication and responsiveness in real estate matters and I am able to communicate and correspond with local lenders easier than an online lender who is only available Monday through Friday. It is your choice on which lender to work with, but explore your options and ask your realtor for some recommendations as well.
I am going to be relocating to a different part of the US. Is this something you can help me with?
Yes! I have access to many great realtors across the country that I can put you in contact with. Reach out to me today and let’s get started!
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