Real estate FAQs help you make a wise investment decision
Real estate buying and selling procedures are quite complicated and involve a number of steps. Whether you are a real estate buyer or seller, you’re bound to have a range of questions in your mind. Getting the answers to these frequently asked questions might help you make a wise decision. Given below are some real estate FAQs and their answers that might help you in the process of buying or selling real estate:
Question 1: While buying a home, what are the fees that the buyer needs to pay?
Answer: The buyer has to pay the following fees:
Origination fees
Documentation fees
Title insurance policy fee
Tax impounds
Homeowner’s Association Fees
Credit report fees
One-time mortgage insurance premium (applicable for FHA mortgages)
Interest adjustment fees
Discount points
Appraisal fees
Mortgage insurance impounds
Escrow payments
Prepaid insurance
VA funding fee (applicable for VA mortgages)
Insurance impounds
Question 2: How can I save money on my monthly home loan payments?
Answer: If you can make an extra payment for your home loan each month, then this would pay off your principal promptly. In addition, you can cut down the loan term and save some money.
Question 3: What are the fees that the seller needs to pay?
Answer: Given below are the fees that the seller would have to pay:
Tax service
Interest adjustment
Escrow fee
Pest inspection
Real estate commission
Title insurance policy fee
Home warranty program
Discount points
Question 4: If I am buying a home for the first time, what are the necessary measures that I must take?
Answer:
You must explore a number of lenders.
You should save money for a sizable down payment.
You should examine your credit report for potential errors.
You must try to get pre-approved for a loan.
You should gather some information on a number of recent real estate transactions in your neighborhood and compare them carefully.
Last but not least, you should talk to a realtor (certified estate agent) and take his assistance.
Question 5: How much down payment do I have to make for buying a home?
Answer: More often than not, traditional lenders require a down payment of 20%. However, you can pay a lower amount as down payment if you buy private mortgage insurance (PMI). By using PMI, you can put forward a down payment as little as 5%.
Question 6: What are closing costs?
Answer: Closing costs are costs that the buyers and sellers incur while transfer of ownership of a property takes place.
Question 7: Who is a buyer’s agent?
Answer: In most real estate transactions, there are normally a selling agent and a listing agent. In some cases, the selling agent is called as the buyer’s agent since he works as the representative of the buyer.
Question 8: What is the full form of FSBO?
Answer: FSBO is the acronym for For Sale By Owner. It is that way of buying and selling real estate where there’s no need for a real estate broker.
Question 9: What is a real estate appraisal?
Answer: A real estate appraisal is an estimation of the price of a specific real property done by an independent and licensed individual.
Whether you’re planning for buying or selling real estate, a host of queries might arise in your mind. It’s not unusual to have these queries. They are typically known as real estate FAQs. Knowing the answers to these FAQs can help you make a good decision when it comes to real estate investment.
