FAQs
A buyer-agent agreement is a document that outlines the services your real estate agent will provide during your home search and purchase. This agreement is required before your agent can show you houses, whether in person or virtually. It ensures your agent is committed to guiding you through the process and helps you understand how they will be compensated for their services.
Why is it important?
The agreement benefits both you and your agent by setting clear expectations. It answers key questions like
– What services will the agent provide?
– How will the agent be compensated?
– Will the buyer or seller cover the agent’s fee, or will it be a combination?
By signing this agreement, you’re ensuring that your agent will dedicate their time and expertise to finding the right home for you.
Conventional Loans
Standard mortgages not insured or guarantee by a government agency.
FHA
FHA loans offer a low down payment option (as little as 3.5%) and more flexible qualification requirements, making them popular with many buyers, especially first-time homebuyers. Homes purchased with FHA financing must also meet certain property condition and safety requirements.
VA (Department of Veterans Affairs)
Available to eligible veterans, active-duty service members, and some surviving spouses, offering favorable terms with no down payment.
Adjustable-Rate Mortgages
Loans with an interest rate that may change periodically, often with an initial fixed-rate period followed by adjustable rates.
Interest- Only Mortgages
Barrowers pay only the interest for a specific period, usually 5-10 years, before converting to principal and interest payments.
Jumbo Loans
A jumbo loan is designed for homes that cost more than standard loan limits allow. Buyers typically need strong credit and financial qualifications to qualify.
Balloon Mortgages
Short-term loans with relatively low monthly payments for a fixed period with a large “balloon” payment due at the end.
Reverse Mortgages
Available to homeowners aged 62 and older, these loans allow seniors to convert home equity into cash, and repayment is typically deferred until the homeowners sells the home or passes away.
Home-Equity Loans
Loans that allow homeowners to borrow against the equity in their homes, often for major expenses or home improvements.
Home-Equity Lines Of Credit
Similar to home equity loans, but with a revolving line of credit that can be drawn upon as needed.
Construction Loans
Short-term loans to finance the construction of a new home, often converted to a traditional mortgage after construction is complete.
Combo/Piggyback Loans
Combining a first and second mortgage to avoid private mortgage insurance (PMI) and reduce the down payment.
A home inspection is a thorough examination of a property’s condition conducted by a qualified inspector. During this process, various aspects of the home, including its structural integrity, electrical systems, plumbing, HVAC, and overall safety features, are assessed to identify any potential issues or needed repairs. The inspection provides valuable information to the buyer about the property’s condition, helping them take informed decisions and negotiate with the seller based on the findings.