Frequently Asked Questions
Below are Answers to Many of Your Real Estate Questions. If you Need More Information, Please
1) How Much Home Can I Afford/What is My Down Payment?
The home you can afford depends on various factors including type of loan, interest rate, down payment, etc. We can let you know within a matter of minutes your approximate amount of affordability as well as your down payment. Down payment is also dependent upon the type of loan, credit rating, etc., but there are loans currently available for 1% of the purchase price or less as down payment!
2) How Much Does it Cost Me to Use 400 North Properties as My Broker?
As a Buyer, it will normally cost you nothing to use us to represent you in the real estate process. The only costs you will incur will be down payment, closing costs, and other various fees involved in your home buying process. The Seller is normally responsible for commission. Commission to be paid by the Seller is negotiated at the time the Listing Agreement is signed, and is usually a percentage of the selling price, but can be a set fee as well...we tailor to fit your needs!
3) What is Earnest Money?
When making an offer to purchase a home, you will need to put up an earnest money deposit as a sign of good faith to the Seller. The deposit then becomes part of the purchase price, and will be held in an escrow account until there is an acceptance of the offer or a price is not agreed upon. If an offer is agreed upon by Buyer and Seller, and the Buyer backs out, the Seller may opt to keep the earnest money in most cases as liquidated damages.
4) How Do I Get Pre-Qualified or Pre-Approved?
We have the ability to get you pre-qualified or pre-approved through various lenders. Pre-qualification is a very quick process, and enables you to know what price you can afford based on down payment, your debts, etc. Pre-approval is a bit longer process, but can be done relatively fast. Pre-approval means your credit, employment, funds, etc. have been approved by the lender.
5) What are Closing Costs?
Closing costs are charges paid to different entities associated with the real estate buying process. Closing costs you may incur include application fees, appraisal fees, attorney fees, county or city taxes, credit report, document fee, escrow fees, Home Owner Association fees, loan fees, mortgage insurance fees, points, title insurance, etc.
6) What is a Point?
One point is equal to 1% of the new loan. Different lenders charge different amounts of points. Be careful not to be "sucked in" by a low interest rate, only to pay higher
fees in the form of points!
7) What is Title Insurance/ Should I Purchase it?
Title insurance protects the insured against loss due to defects, liens, encumbrances, etc. that may not be disclosed to the new owner on or before the date of closing. Title insurance is highly recommended...the cost is nominal, and could save you thousands should the title be encumbered.
8) What Should a Home Inspection Include/Do I Need One?
Every home inspection should include, but not be limited to the following items: appliances, ceiling, doors, electrical wiring, floors, foundation, heating and A/C, home siding, insulation, leak detection, plumbing, potential hazardous materials, roof, septic tanks or sewer lines, ventilation, and walls. We recommend everyone to get a home inspection done. The cost is minimal, and may detect damage not visible to the untrained eye.
9) Do I Have to Sign a Long Term Contract to Use 400 North Properties as my Broker?
Our philosophy is, "If you're not happy, we're not happy". Therefore, we do not require you to stay in a listing agreement contract with us if you are dissatisfied with our services. We include a "30 day out" clause in each listing and/or buying agreement that we draw up. If at any time during your contract you are unhappy, just give us 30 days notice to terminate, and we bow out...you owe us nothing! This assures you that we will do our best to exceed your expectations. We will find the right buyer for our sellers, and find the right home for our buyers!