Select your Realtor and Lender
WHY USE A REALTOR®?
- I know the market and can quickly narrow down a few areas where you are likely to find a home at the price you want.
- I can save you time by doing a lot of the legwork. By knowing and understanding your needs, I can eliminate homes that do not meet your criteria.
- I will preview homes for you, view homes with you, and help you determine the pros and cons of each. Like to search online? I can help maximize your online search by providing you with pass codes to sites only available through agents.
- I can provide information and make appointments to see almost any property—including For Sale By Owners and possibly a property that isn’t even on the market.
- I will guide you through the negotiation, legalities and details of purchasing a home once you find the one you want to purchase.
- I am committed to you, and you receive the best service possible when you commit to one Realtor®—it is a team effort.
HOW REALTORS ARE PAID
As a consumer in the real estate market, you will benefit from the services of an experienced Realtor® throughout the buying or selling process. As the buyer you are not footing the bill but it’s important that you understand how Realtors are paid.
Realtors (and lenders) are paid on a success basis. If the transaction does not close, the Realtor® doesn’t get paid—no matter how much time, energy, and money they’ve spent. Basically, the people selling the house pay a commission to their listing broker based on a percentage of the selling price. The listing broker then shares that commission with the buyer’s broker who splits it with your agent.
Once upon a time, buyers found their dream home and then went in search of a mortgage. Today things have changed. The market is more competitive, and buyers who arrange their financing first have a distinct advantage over other buyers. This means finding a lender before you start looking for a home.
Real estate is very much a referral business, and most Realtors® have a list of preferred lenders they have worked with in the past. I have confidence in the lender’s on my list. They are professional and have the ability to meet your needs. They will do an excellent job educating you about the many financing options available.
THE LENDER PROCESS
- Loan Application
- Credit Report
- Job Verification
- Pre-Qualification vs. Pre-Approval
- Deposit for Appraisal
Your lender will work with you to decide which loan is best for you. During this process, your lender will verify your employment, your income, and pull your credit report. You will also need to provide documents in order for the lender to formally approve you for a loan.
Pre-Qualification is simply a quick estimate of your borrowing potential. This is typically a short conversation or meeting with your lender.
Pre-Approval is a more formal estimate of a specific loan amount—typically the maximum you can borrow. You will receive a Closing Cost Estimator of your closing expenses. Once you have been pre-approved for a loan, you and your Realtor® can shop with confidence. Pre-Approval Letters are often required by the sellers when you make an offer. The lender will prepare a letter stating you are qualified to purchase the home at the price and terms in your offer. Once your offer is accepted, your lender will complete your formal application on your chosen property. This involves providing disclosures, including your Good Faith Estimate.
Deposit of Appraisal. In our area, it is customary for the seller to pay for the appraisal. However, the buyer is usually required to pay for this at the time the appraisal is completed. You will be credited back for the cost of the appraisal at closing by the seller.