First Time Home Buyers Frequently Asked Questions
Why do buyers have to write a purchase contract in order to negotiate with the seller? Since verbal contract are not legally valid, for the protection of both parties, it needs to be in writing
What is the down payment required? Most of the time the sellers have no requirement for that, it comes from the mortgage lenders. The minimum is 3.5% for an Fha loan.
Who pays the buyers closing cost? That is negotiable, but if the sellers declined to help the buyers on that, then buyers have to bring it to the table or the lender will help them increasing the mortgage interest rate in order to obtain a rebate for the purpose of paying that expense.
Why Do buyers have to provide a Good Faith deposit check? The reason is to show the sellers that buyers are serious in pursuing their home purchase.
What happens to the deposit check? When buyers and sellers agreed on all the purchase terms on the contract, that check is sent to Escrow which is a third party company that will handle their transaction from beginning to end. That deposit will be part of the down payment and escrow will extend a receipt for that amount.
Who pays for the home inspection? Is it mandatory? It is customary that buyers pay for since it is for their benefit to know the property condition. It is not mandatory but it is wise to do so, since it's their biggest investment.
Can someone else be added to property title while on the purchase? It is really up to the lender who will allow it or not.
Can the seller pay for the appraisal? No, buyers lender request the payment from them. Can the buyers get a copy of appraisal? Yes its a matter or requesting it from the loan officer.
What happens when the property didn't appraise at the sales price? The realtor should ask the buyers to request a copy to lender in order for him to negotiate with the seller to reduce the sales price to appraise value.
What if the selles decline to lower the sales price to the appraise value? There are two choices: The first one buyers can bring the difference if they choose to do or submit the cancellation in writing so escrow will release buyers deposit.
What happens when the lender declined the buyer loan? When that happens, the first choice is to move the buyers package to another lender(s), if no one can qualify them, the next step is to cancel the purchase transaction in which buyers and sellers sign it in order to cancel it legally, so buyers can get their deposit.
Why do buyers have to write a purchase contract in order to negotiate with the seller? Since verbal contract are not legally valid, for the protection of both parties, it needs to be in writing
What is the down payment required? Most of the time the sellers have no requirement for that, it comes from the mortgage lenders. The minimum is 3.5% for an Fha loan.
Who pays the buyers closing cost? That is negotiable, but if the sellers declined to help the buyers on that, then buyers have to bring it to the table or the lender will help them increasing the mortgage interest rate in order to obtain a rebate for the purpose of paying that expense.
Why Do buyers have to provide a Good Faith deposit check? The reason is to show the sellers that buyers are serious in pursuing their home purchase.
What happens to the deposit check? When buyers and sellers agreed on all the purchase terms on the contract, that check is sent to Escrow which is a third party company that will handle their transaction from beginning to end. That deposit will be part of the down payment and escrow will extend a receipt for that amount.
Who pays for the home inspection? Is it mandatory? It is customary that buyers pay for since it is for their benefit to know the property condition. It is not mandatory but it is wise to do so, since it's their biggest investment.
Can someone else be added to property title while on the purchase? It is really up to the lender who will allow it or not.
Can the seller pay for the appraisal? No, buyers lender request the payment from them. Can the buyers get a copy of appraisal? Yes its a matter or requesting it from the loan officer.
What happens when the property didn't appraise at the sales price? The realtor should ask the buyers to request a copy to lender in order for him to negotiate with the seller to reduce the sales price to appraise value.
What if the selles decline to lower the sales price to the appraise value? There are two choices: The first one buyers can bring the difference if they choose to do or submit the cancellation in writing so escrow will release buyers deposit.
What happens when the lender declined the buyer loan? When that happens, the first choice is to move the buyers package to another lender(s), if no one can qualify them, the next step is to cancel the purchase transaction in which buyers and sellers sign it in order to cancel it legally, so buyers can get their deposit.
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