Frequent Questions

Here are a few questions that we hear quite frequently as we are working with our clients.  If you would like to know anything else, please Ask a Realtor® or give us a call today!

What is the difference between a Real Estate Broker and a Real Estate Agent?
A Broker is a state licensed professional whose name must be used on all Real Estate listings in that area.  A Real Estate Agent, even though still licensed by the state, is basically the Real Estate Broker’s Salesperson.  Additionally, to become a broker, an Agent must have three complete years as a Real Estate Agent and 16 college credits.

How do I choose the best Real Estate Agent for my needs?
You can start by asking friends and family who they have used.  Also you can browse the internet for Realtors in your area.  Call around and talk to them, see if you can read their personality and determine if they will be worth dealing with.  Also, never be afraid to ask them any questions, you are stepping into a new venture here.

What is a Title Search and why do I need it?
The Title Search is used to answer three queries.

a. Does the seller want the property because it is saleable?
This means the seller could be buying the house to complete a “flip”. “Flipping a house means purchasing, repairing, and reselling a piece of property for a profit.

b. Are there any restrictions on the use of the land?
Any promises or commitments made that stand must be met as well like allowing the electric company access rights for overhead lines, sewer/water company digging rights, etc.

c. Does the property have any attached obligations that must be satisfied before sale?
Liens, back taxes, etc. are all conditions that can cause a bump in the road and must be met before the property changes hands.

What is “Escrow” and how does it work?
Escrow is a trust account set up by the broker and lender to work additional expenses into the monthly mortgage payment.  For example, some people tend to have an Escrow account set up for their taxes and insurance premiums. Every month their mortgage payment is a bit higher, but their taxes and insurance are paid in installments instead of a larger one time payment.

Is it a bad idea to buy a house that needs repair?
Sometimes the traditional “fixer-upper” can be the way to go and other times it can end up being a headache.  The best thing to do is find out what repairs are needed and get an estimate from a licensed contractor.  If it is still less costly to get this work done and move in than it is to buy a different house, then it may be worthwhile.

How do I choose which area I wish to live in?
There are many factors to choosing where you want to start your life as a new homeowner.  Most people choose based on School Districts, access to Public Resources (Hospitals, Police, etc.), and access to amenities(supermarkets, etc.).  Some want to be close to these things and then some do not.  Rural Communities are a great fit for people who want the peace and quiet of not living in a city or town.

What should I be looking for as I walk through a prospective Home?
Above all, you should be looking for solutions to any issues with your current living situation (parking spaces, yard size, pet concerns, etc.). Additionally, it is good to have a friend with you that is a contractor or has some carpentry experience.  People like this are great for helping you avoid costly mistakes.  Some problems with a home may not look like much, but when you actually find the root of the problem it gets to be much more work than anticipated. A crack in the wall may just look like a quick fix but can turn into a broken beam in the basement, or small crack in a basement wall can lead to a leaking foundation, etc.

What are closing costs?
Closing Costs are the final set of charges that must be paid in full before the house can be released to you.  These can include Documentation Fees, Escrow or Attorney Fees, Homeowner’s Insurance Fees, Property Taxes, First Escrow Account Payment, Interest, Load Origination Fees, and many others.  While there are many different items which can be mind boggling, they are mandatory.

What are the benefits of buying vs. renting a home?
Opinions will vary, but in a nutshell buying your home has more long term benefits than renting.  Every month when you make a mortgage payment, you are doing much more than handing money away.  Mortgage payments and the taxes and insurance involved can be tax deductible and help your credit more and more for every successful payment made.  When you rent, you are basically paying your landlord’s mortgage payment on your living space (unless they have it paid off already).  Basically, even though paying your rent does secure a place to live every month, it is like throwing money away in the long run because it is not benefitting your future.  If renting is the best solution for you at the present time though, feel free to check out our Rentals Page today!.

What do I need to have with me when applying for a mortgage?
Being prepared when you are applying for a mortgage prevents headaches.  Here is a short list of the main items you should bring to the lender with you:

a. Social Security Card and Driver’s License
b. Checking and Savings Accounts information
c. Asset information (Bonds, etc.)
d. Proof of Employment
e. Last 2-3 years of Tax Statements
f. List of all outstanding debts with detailed account info
g. A Recent Paystub

As always, if you would like to know more, please Ask A Realtor® today!