I am a first time buyer, what is the best way to get started looking or a home?

The first step a potential buyer should take is to get pre-approved by a lender so that you know how much you can afford to purchase before starting to actually look at property. After pre-approval, the next step would be to locate a real estate agent or reliable internet resource that can help you determine where and what you would like to buy.

I already own a home and I am looking to move up, do I need to sell or list my current home prior to making an offer on a new property?

In the current seller's real estate market, many buyers searching for property do not have the luxury of making an offer contingent upon the sale of their current residence. The solution may be either equity or bridge financing for those buyers who need the sale proceeds from their home in order to buy a new residence. These loans would be secured against their existing residence and would provide interim financing for the new residence until the property is actually sold. If a buyer does not need the equity from their current residence in order to purchse a new residence and they can qualify for a new loan carrying both the mortgages on the existing and the new residence, they could elect not to sell their existing residence or could choose to rent it.

Do I need a real estate agent and how do I go about finding one?

With advances in on-line resources available today, many buyers question whether they should work with an agent. But an experienced agent earns his or her commission. In a fast moving real estate market, a good agent may learn of real estate listings before they hit the general market and can always ease the way in working with a seller and his listing agent (both at the time an offer to purchase is made as well as throughout the escrow process). When selecting an individual realtor, good questions to ask relate to experience, special education and certifications they have received, references. Additional sources of referrals are friends, co-workers and neighbors who have recently sold or purchased property.

Is it important to find an agent that works primarily in the neighborhood where I would like to live?

If you seek the assistance of a selling agent, (an agent who works with buyers rather than sellers) they frequently work with buyers who do not always know what area they would like to concentrate their search in and therefore these agents become familiar with a wider range of neighborhoods. It may be advisable to select an agent who is familiar with the county you are searching within. Although when listing a property for sale, an agent with a thorough knowledge of a particular neighborhood may produce the best results.

How do I find out information about local neighborhood schools?

If you are working with a real estate agent, your agent should have information on the school test scores in your selected area. You may also contact the neighborhood schools directly for information. .

Do I need the services of a loan agent/officer when applying for a loan?

The answer depends upon the experience level of a borrower as well as how complicated his or her loan transaction may be (i.e. an applicant with bad credit or one who cannot document their income). An experienced borrower with solid credit who is looking to refinance is probably able to fly solo whereas a first time buyer or someone who is looking to close a transaction very quickly, may require the assistance and advice of an active loan agent/officer.

Do I need the services of a loan agent/officer when applying for a loan?

The answer depends upon the experience level of a borrower as well as how complicated his or her loan transaction may be (i.e. an applicant with bad credit or one who cannot document their income). An experienced borrower with solid credit who is looking to refinance is probably able to fly solo whereas a first time buyer or someone who is looking to close a transaction very quickly, may require the assistance and advice of an active loan agent/officer.

How will my real estate agent (or builder) and my lender work together to coordinate the closing?

Good real estate agents and builders keep in close contact with all parties involved in a transaction. In a typical sale, purchase contract contingencies (i.e. financing, inspections) require that an agent or builder's rep communicate well with all parties to ensure that the contingency deadlines are met. The real estate agents, builder, loan agent and escrow officer are dependent upon one another to close a transaction (no one gets paid until closing occurs) as well as for the referral of future business, so it is in their best professional interest, as well as their clients, to communicate with one another. Of course it is always a good idea for a buyer/borrower to keep in close contact with each of these service providers for a status and progress report.

Must I obtain financing from the lender my real estate agent (or the builder) recommends?

You are never required to use the referred (or preferred) lender of a real estate agent or builder. Most real estate agents will provide their clients with 2-3 potential sources for financing, typically agents have access to an in-house lender as well as several outside lenders who they have had good experiences working with. The referred lenders may or may not offer the best array of loan products or the lowest rates. It is always a good idea to do some loan investigating on your own and if you find that the referred lenders do offer competitive pricing then you can make both yourself and your agent happy. But if you have a complicated transaction (i.e. an unusual property) or if you have problems with your loan application (i.e. bad credit), you must be certain to disclose everything to any potential lender you communicate with to be are certain you are making an "apples to apples" comparison of lenders. Large builders often have their own mortgage companies or affiliated financing partners who they prefer buyers within their developments use; sometimes the builder will offer loan closing cost concessions to buyers who opt to work with their preferred lender. But the same common sense would apply, do your homework carefully before committing to any lender and always be careful when shopping that you are making a valid loan comparison (i.e. same rate, points, closing costs, rate lock duration, etc).