First Time Buyer Questions-Samantha

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Many Los Angeles First Time Home Buyers enter the market with a lot of first time buyer questions. We have put together a list of common questions and answers that are geared toward first-time home buyers who are just starting their search. Most first-time home buyers will not be purchasing their home with cash, so this video for the first-time home buyer who will require financing for the purchase of a first home.

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Presentation Transcript

First Time Buyer Questions:

First Time Buyer Questions By San Fernando Valley Realtor Samantha Zaitz 818.912.0759 DRE-01886894

Slide 2:

How do I know if I’m ready to buy a home ?

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Prior to an real estate agent showing you homes, a buyer must be pre-qualified by a lender. The approval will be based upon: credit score , work history, debt to income ratio and the funds you have available for down payment.

Slide 4:

Am I better off purchasing or renting ?

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Renting does offer the flexibility of moving quickly, but that’s pretty much it. Homeowners can write off their mortgage interest along with property taxes. Homeowners also have the freedom to customize their home and decorate it as they wish. Also, homeowners benefit from the equity built over time when the home appreciates in value.

Slide 6:

Home buyers agent: Can I save money without one ?

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The seller’s agent (name on the for sale sign ) has a responsibility to act in the best interest of the client. His or her job is to get the most $$$ for his client. A home buyer’s agent (a.k.a., buyer’s agent) has a responsibility by law to represent YOUR best interest. Not only that, but a good buyer’s agent knows the entire local inventory and your neighborhoods of interest. And here’s a bonus for you Mr. or Mrs. Buyer—you do NOT pay your agent’s commission.

Slide 8:

How much is a working with a real estate agent going to cost me ?

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Nothing! Your Realtor’s (agent’s) commission is paid through the seller’s proceeds from the sale of the home—not from your pocket!

How do I select a real estate agent?:

How do I select a real estate agent?

Slide 11:

It is often word of mouth from friends , & family. However , if you are looking to purchase in a specific area, then you are better off finding an agent who focuses on your desired neighborhood. And of course, you are looking to purchase here in the Los Angeles area, we’d love to be your first choice!

Slide 12:

Home vs. condo: Which is better ?

First Time Buyer Questions-#7 Home vs. condo: Which is better?:

First Time Buyer Questions-#7 Home vs. condo: Which is better? This is a very common question buyers are faced with now when they compare a home vs. condo. Condos have HOA dues (Home Owner Associations dues). These fees cover the maintenance of the building/grounds, insurance and, most of the time, trash and water. One downside of a house is keeping it up(roof, AC, yard, etc..) Ultimately , location, budget and space may be your deciding factor when choosing to buy a home vs. condo.

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What is the MLS ?

Slide 15:

MLS stands for Multiple Listing Service. The MLS is a virtual warehouse that Realtors use to list homes, condos, townhomes and other types of real estate for sale . It is a better & more accurate source than Trulia, Redfin , and other online house search engines.

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What is a short sale ?

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A short sale is when the sale of a home’s net proceeds do not fully pay off the existing mortgage loan(s) and the lender is willing to accept a discounted payoff. Short sales are not short in time at all and can take several months. When purchasing a short sale, engage the help of a short sale specialist.

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How much do I need for a down payment ?

Slide 19:

First-time home buyers qualify for an FHA loan. First-time home buyers can put as little as 3.5% of the purchase price down for the home. For conventional loans, buyers can put down as little as 5% of the purchase price . There are all sorts of loans so talking with a lender with determine exactly how much you need for a down payment.

Slide 20:

What is Escrow ?

Slide 21:

It is the period in which both the seller and buyer agree to the terms of a fully executed purchase agreement and entrust an escrow agent (a neutral third party) to carry out the instructions agreed upon by both the buyer and the seller. Escrow typically lasts about 30–45 days.

Slide 22:

What are closing costs ?

Slide 23:

There are fees in addition to the down payment that must be paid when purchasing a home. These fees are called closing costs. For example, closing costs cover title policies, recording fees, inspections, courier charges, reserves to set up an mortgage impound account, and origination fees that the lender charges. Closing costs can be typically be anywhere from about 2 to 3 percent of the purchase price. By the way, we like to negotiate for our buyers to have the seller pay those closing cost.

Slide 24:

What is a Good Faith Estimate?

Slide 25:

It is the list of settlement charges that the lender is obliged by law to provide the borrower within 3 business days of receiving the loan application.

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