As a first time buyer, you might be intimidated to ask a real estate agent a bunch of questions before working with that agent. Don't be. These people are going to be working for you and they should understand that you've never done this before. But to get you started, here are five questions potential buyers think are stupid - but they're not:
Q. Do the appliances come with the home?
A. If they are in the home, typically yes. However, make sure you get it in writing. Sometimes the seller might want to take their fancy washer and dryer, but that should be in the listing sheet. In some other states, it is NOT customary that the appliances stay. But here in Illinois, it is typical.
Q. On a short sale, should we do the home inspection right away or wait until the bank approves it?
A. This is actually a tough one. Our views on this subject has changed over the last three years. Our opinion is that if you're buying an older home or one where you believe there might be some major issues, we’d do the inspection right away. If it’s a condo or a home where the home inspection issues might be minimal, we might recommend waiting until the bank approves the sale.
Q. How many lenders should I talk to in order to get preapproved?
A. One. Talk to a few after your offer gets accepted, to do so beforehand is a waste of time.
Q. How much of a purchase price can I afford (that one is asked a lot)?
A. Once you talk to lender, you’ll know what the bank will lend you. This will depend on your income, debt, and credit score(s). They use a formula - basically they do not want your housing expenses (interest, principal, insurance, assessments) to be more that a certain percentage of your monthly income. Here’s a good link explaining the ratios: click here.
Now remember, that’s what a bank will lend you. That doesn’t mean that’s what you should spend. You might be approved for $3000 monthly payment, but is that too high? Do you eat out a lot? Do you take a lot of vacations? Are you having children soon? Daycare? Is your career solid? Fortunately, we’ve seen a lot of people lately go the ultra conservative route, which is a great thing. Remember, you’re probably going to be in this home for 4-6 years, don’t stretch yourself too thin.
Q. Does the real estate agent make all the showing appointments?
A. Yes, they will also go with you when looking at properties. It is their job to point out the negatives and positives of each home. Most of the time you’ll be in the same car with your agent as long as you’re comfortable with that person.
"If we couldn't laugh, we would all go insane." - Jimmy Buffett
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
http://www.startingpointrealty.com/
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