Common Buyer's Questions
If you are buying,
probably have more questions than answers. If that the case, read the following
most common questions ask by Buyers.
I am buying for
the first time, but I do not know where to start.
If you are planning ahead of time, find out if local real estate offices, schools, or
colleges are offering seminars for homebuyers. Attending these seminars may help you
to become more knowledgeable with the buying process, real estate terminology, and get
informed about existing home-loan programs, etc. Other sources of real estate information
may be newspapers, magazines, and local real estate newsletter.
I have decided to buy a
property, what do I do next?
Before homebuyers start looking for a property, I recommend homebuyers to contact
first a lender to be pre-qualified for a loan.
do I look for a home-loan?
There are many sources, but you may contact your local Bank, Mortgage brokers, Saving
& Loans, Credit Unions, visit lenders in the Internet, etc. Ask for appointments
to find out more about their home-loan programs and rates. For the most part lenders are
competitive, but shop around to compare interest rates, loan programs, and fees charge to
process a loan. If you can not find one in you own, a real estate agent may recommend one
documents & information does lender need for a loan application?
The required list of documents and information may vary from lender to
lender and will depend in the circumstances of each borrower. For the most
part in California, lenders require at least the following list of documents
and information to process a home-loan application.
DOCUMENTS: Most recent
2 years filed Federal Tax Return with W-2 (or 1099's if self employed),
most recent paycheck stubs-Less than 30-days old and most recent
3-months bank statements.
social security #, two-years of residence history, two-years of
employment history and if renting, landlord information.
the difference between fix and adjustable interest rate in a loan?
In a standard fix interest rate loan, the interest rate remains fixed (does not change)
for the life of the loan. The most common ones are the 30-year fixed loan and the 15-year
For an adjustable interest rate, the interest rate changes certain
percentage once or twice a year or as agreed under the loan terms. Normally, there is a
cup in the interest rate, in other words, the interest rate will not go higher after
reaching certain percentage (Common questions
about Adjustable Rates).
What kinds of programs
are out there for first time buyer?
Consult your local lender or agent, they are normally more aware about different
government and city programs for local communities.
What is the minimum down payment to
buy a home?
This figure varies, and will depend in the type of loan, loan amount, and sale terms. For
example, a standard conventional-loan normally requires 20 percent down. On the other
hand, a government secure loan (e.g., FHA-loan) a first time buyer may buy with as little
as 3 percent down up to certain loan amount.
How do I know if I
am working with the right real estate agent?
The general rule is, before deciding to work with an agent, is always good idea to
interview different agents to know more about their business experience, personality and
type of services offered; work with the one you feel meet your requirements. You may also
ask family or friends, they may recommend someone to you.
How do I know if I am buying at
the right price?
Ask your agent for a Comparative Market Analysis, a
analysis may help you to find recent sold properties in the area, and
spot buying and selling trends in the area.