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Real Estate....Your Way.tm Shreveport/Bossier City (Northwest Louisiana) Realtors Since 1993 Want to buy a home? |
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Home > > Frequently Asked Questions (FAQ's)
Frequently Asked Questions
(FAQ's)
CLICK ON THE "CONTACT" LINK ABOVE FOR A RAPID RESPONSE.
| How early should I start looking for a home to buy? |
| 60-90 days preferably - before your desired move-in date. This allows time to gather information, shop, compare, make an offer and close. |
| How do I begin the looking process? |
| Write down your important home requirements - area, features, price range, etc. Determine who all the buyers will be besides yourself and settle on a comfortable monthly payment range. Then contact David or Phyllis at David Realty. |
| Should I use a Realtor or look on my own? |
| It is possible to look on your own. But why waste your precious time and expense of driving around when you can get professional help for no charge? Remember, in a home purchase, the seller usually pays the Realtor fees! Realtors have access to the best values and are trained negotiators to get the highest value for your dollar. |
| Should I use more than one Realtor? |
| You can use more than one Realtor. This is a very confusing process, however. Divided loyalty is no loyalty. Establish rapport with 1 Realtor and let them go to bat for you. In the Realtor Multi-List System, the first Realtor that shows you a particular home has preference on the commission paid by the seller. Using one Realtor is best for you. |
| What is pre-qualify and when should it be done? |
| Pre-qualify is a mortgage company term that indicates a lender has reviewed your income, debt and credit history to determine if you can comfortably afford a home payment for a 15, 20 or 30 year term. It is NOT a promise to lend, only an opinion. A better process is known as “pre-approved” which IS a promise to lend and is a much stronger qualification in the seller’s mind. |
| Do I need a job in order to buy a home? |
| You must have a proven source of income to get a home loan. This can be either a regular job, retirement pay, insurance settlement paid regularly or any other valid and regular source of income. If you are paying cash, this does not apply. |
| What is a credit score and why is it important? |
| A “credit score” is a number between 400 and 850 that is assigned as a grade on your credit report by the Fair Isaac Company which most credit reporting agencies use to determine your paying history. Most home loans require a credit score of 620 or higher to approve you for financing. Yes, this is very important. There are ways to improve your score if it is not high enough. |
| Can someone else buy a home with me? |
| Yes, 1 or more buyers can join you in this process. They become co-buyers and co-owners of the property. They must also qualify for the loan. |
| Can someone else buy a home for me? |
| Yes, this type of purchase is known as an “investor loan” by the lender - where the actual owner does not live in the home. The buyer will be required to make a larger down payment than if they lived there - usually 10% to 20% of the sales price. The person living in this type of home purchase is not an owner and has no responsibility to pay back the loan. |
| How long will the looking process take? |
| Usually, 2-4 weeks is plenty of time to see enough homes to make a selection. It is not unusual for a buyer to find the home of their dreams in 1 week or less. |
| How do I make an offer when I find the home I like? |
| Your Realtor will assemble the necessary paperwork to do this for you. In Louisiana, any valid offer must be in writing. Your Realtor will guide you in creating the offer to include not only a price, but the right of inspection, provisions about costs for seller to pay and the occupancy date after the sale. |
| What if I like more than one home? |
| Determine your 1st, 2nd or 3rd choices. Make your 1st offer on the top choice and work your way down the list if some of the offers do not work out. |
| Can I offer less the asking price? |
| You can offer less, the same or more than the asking price. A “meeting of the minds” must take place in order for an offer to be consider as accepted. This is when the buyer and the seller have agreed on ALL terms of an offer. Your Realtor will guide you on the offering price based on similar sales. |
| What if the seller rejects or counters my offer? |
| You can either make another offer or walk away and make an offer on another home. If you are satisfied by the seller’s counter-offer to your first offer, you can accept this and move on with the sale. |
| What is the meaning of an accepted offer? |
| An accepted offer is when the buyer and the seller have agreed in writing to all terms of the buy and sell agreement. In Louisiana, all Realtors are required to use the same buy and sell agreement or purchase agreement form. |
| What happens after an offer is accepted? |
| The lender now controls most of the process. After they receive a copy of the accepted buy and sell agreement, they will finish the verification process of the buyer’s income, credit, assets and liabilities. The appraisal will be ordered. The appraisal usually takes from 7-14 days to complete. After all loan requirements are met, the lender sends the closing papers to an attorney that is the buyer’s choice or a mutually agreed upon title company. |
| Is a property inspection necessary? |
| A property inspection is not required for the buyer - other than what the appraiser will make as a part of their paperwork. We highly recommend that every buyer have a separate inspection by a professional inspector. This can be paid for by the buyer or seller - whichever has agreed to do this in the buy and sell agreement. All purchase agreements should be made subject to this inspection. |
| What is a closing? |
| A closing is the actual process when the final papers are assembled at a title company office and signed by the buyers, sellers and attorney. The seller is paid for the property, the buyer pays the required down payment, taxes and insurance, and the fees for the Realtor, inspectors and any other contractors are paid out. The deed or Title is transferred from seller to buyer. The attorney records all the important Documents at the Parish courthouse and the home is yours. |
| Do I need to do anything before the closing? |
| Shop for your home insurance policy and notify your Realtor of your choice. Review the inspection report and with your Realtor notify the seller of any repairs that you require before proceeding with the sale. Cooperate with your lender to deliver any other required financial information or documents for them to complete the loan file for approval. Make a final walk through inspection before the actual closing. |
| When can I move into the home and get the key? |
|
After the closing - which usually takes an hour - you get the keys and can move
in immediately. It is a good idea to arrange for the utilities to already be in
your name the day of or perhaps a day before closing so there is no interruption
of service. If you and the seller have negotiated a delayed occupancy, you will
probably get the keys from them after the closing just before your move-in date. REMEMBER - Your Realtor is the main coordinator of the entire transaction. Choose someone who you believe can assemble all these services in a timely manner and always keep YOUR BEST INTEREST first. David and Phyllis Martin at David Realty have been involved in over 1300 such sales and we know the process very well. Your future referrals are important to us. We hope these answers help you. |
| Call us today: 318.686.9675 ~ 800.888.3721 |
| Email us at: david@davidrealty.com Email this site to your friends! |
