FAQ from a Real Estate Agent

"Below are the most common questions I get asked by First Time Home Buyers. As always, if you have any additional questions about buying your first home, feel free to contact me. I hope you find this guide useful."

Greg Ruud
London Properties, Ltd.
(559) 352-7716
greg@gregruud.com
www.gregruud.com

I want to buy a house what should I do first?

Get yourself pre-qualified. Looking for a house is like going hunting. A pre-qualififcation helps you know what you are hunting for, as far as price goes and a payment you can live with. Find a lender you can trust, if you don't know one I will be glad to point you in the right direction.

Should I use a real estate agent and how much will it cost?

IT'S FREE!!! That's right -- as a buyer you pay nothing for your real estate agents services. The seller pays your agents fee. Using an agent let's you have someone who is on your side and looking out for your best interests.

How much will using a lender cost?

Initially you may be asked to pay for a credit report, which is usually under $20. Other than that those services cost you nothing until the final closing of your house. A good lender will always be very clear about ALL of the costs involved in your real estate transaction.

How do I make an offer?

The first step is again, get pre-qualified, work with your agent to find the right house, and then figure out together what the house is worth to you. Your agent will supply the contracts and expertise in writing up an offer with the best chance of getting accepted. You will need a check for a deposit, which is held in the brokers trust until your offer is accepted, your pre-qualification letter and some time to sit down with your agent.

Can I offer less than the asking price?

In real estate most everything is negotiable. Price, terms, time, as long as both parties agree, and it is legal, both buyer and seller can work to craft a deal that works for all parties.

Below are some additional links which you may find helpful:

1. HUD's Buying a Home Guide
2. HUD's 100 Questions and Answers About Buying a New Home
3. US News' 7 Things You Need To Know About the Tax Credit

FAQ from a Lender

"As a lender, I strive to make your purchase go as smooth as possible from start to finish. Whether you are a first time homebuyer or a seasoned investor, I will find you the best loan to suit your individual needs. Along with conventional loans, we also have FHA,VA, and Private Capital. Call me for a personal rate quote with no obligation."

Jeff Lovick
Mid Valley Financial
(559) 256-3626
jeffl@mvfs.com
www.mvfs.com

Do you have any information about the First Time Home Buyer Tax Credit?

Absolutely. The following link is an excellent guide to what the First Time Home Buyer Tax Credit is and all the most common questions about it: http://federalhousingtaxcredit.com/2009/faq.php

How much of a down payment do I need?

Currently the minimum down payment is 3.5%. However, it is hard to pinpoint what will work for the borrowers since they all have different situations such as credit, income, assets and so on. The best thing to do is contact me and I'd be more than happy to go over your situation in person.

Is 100% financing available?

The only true 100% financing is for a VA loan.

How long does it take to get a loan appoved?

Approval times vary depending on the complexity of your loan application. The typical time frame is 1-2 days for approval. You can save time, however, by pre-qualifying for your loan.

What is the best type of loan for me?

Choosing the right loan depends on many things. Such as how long you plan to keep the property; how much of a down payment you can afford; how much of a monthly payment you can afford; future earnings; etc.

What is PMI?

In the event that you do not have a 20 percent down payment, lenders will allow a smaller down payment - as low as 0 percent in some cases. With the smaller down payment loans, however, borrowers are usually required to carry private mortgage insurance. Private mortgage insurance will usually require an initial premium payment and may require an additional monthly fee depending on you loan's structure.

For more lending FAQs, my company's website has a fantastic list of the most common FAQs from both new home buyers as well as refinancing: http://www.mvfs.com/FAQ.html