Answering Buyer FAQs
This page is dedicated to answering some of the frequently asked questions I receive from buyers. If your question(s) is/are not here, you can call or text me during my listed business hours to discuss, or send me an email with your question(s) and I will respond as soon as I can!
WHAT ARE YOUR BUSINESS HOURS?
My current business hours are
Monday - Saturday: 9 AM - 5:30 PM
Sunday: Closed
WHY DIDN'T YOU ANSWER MY CALL/TEXT/EMAIL?
If you called/texted/emailed during business hours and it went unanswered, it is likely because I was showing another home, in a meeting, at a closing, working with another agent, am outside of my business hours, or spending time with family. I promise to get back to you as soon as there is a break in my schedule that allows me to give you my full attention and the best care that you deserve!
CAN I CALL/TEXT YOU AFTER HOURS?
Of course! I understand how thoughts, ideas, questions and concerns can come about at all hours of the day & all days of the week. You are always welcome to reach out to me, and I will respond during business hours the next day.
CAN WE LOOK AT HOUSES WITHOUT A PREQUALIFICATION/PROOF OF FUNDS?
To ensure that we make the most of our house-hunting time together, I require proof of funds and/or a pre-approval letter from your lender. If you don't have a lender yet I can absolutely share some names of local lenders & mortgage brokers who I've worked with and trust to do a good job. This is my standard practice, so let's talk about why it benefits you:
*Streamlined Showings: Many listing agents will prioritize home showings to pre-approved buyers. This means with your proof of funds and/or pre-approval we'll be at the top of the list to schedule a showing to see the home!
*Confident offers: A pre-approval letter and/or proof of funds will demonstrate your financial readiness to the seller, which allows you to stand out and be more competitive than other buyers.
*Focused Search: Instead of throwing wet noodles at the wall and hoping something sticks, we'll be able to tailor your search to your exact budget and goals, narrowing down the list of homes you need to see and allowing us to view properties you're already more likely to love rather than wasting your time on homes that don't fit your goals & needs.
I'M NOT WORKING WITH A LENDER, CAN YOU RECOMMEND SOMEONE?
Absolutely!
I've worked with a number of buyers who chose a variety of lenders. I've ALWAYS seen that local lenders are faster, and easier to reach than big banks/big loan companies. That doesn't mean anyone is BAD at their job, but in my experience, buyers want to be able to communicate freely with their chosen lender, and don't want to wait days to get a response or resolution.
Ask me for my list of suggestions, made up of lenders I've done deals with who did an above average job and made it easy for the buyer AND me to get to the closing table!
WHEN SHOPPING FOR A LENDER, WHAT QUESTIONS SHOULD I BE ASKING?
*Competitive rates:
The interest rate on your mortgage is a paramount factor that will affect your monthly payments and the overall cost of your home over time!
Different lenders offer varying rates and programs. Even a small difference can translate to a substantial cost, OR savings, for you over the lifetime of your loan.
*Closing expediency:
The speed at which a lender can close is another crucial factor, especially in a more competitive market where sellers favor quick closings.
Ask the lenders you're interviewing about their average closing time, and any factors that have/will delay your closing with them.
*Customer service:
Exceptional customer service is my priority for my client besties. It should be the lender's priority too! It can help keep the transaction going smoothly, and reduce stress for the buyer(s) if the lender has good customer service standards!
Look for a lender who responds promptly, is transparent and honest, and is willing to answer your questions.
*Credit score concerns:
A common apprehension among buyers is the potential negative impact on their credit score when shopping for lenders.
Credit bureaus recognize the importance of rate shopping, so they consolidate multiple inquiries into 1 "hit" if done within a 14-day period. Thus minimizing the impact your credit score takes!
*Loan options and terms:
Lenders can offer a variety of loan products with different terms and conditions. Assess each loan type, down payment requirement and other terms from each lender to find the one that matches with your financial situation and long-term goals best!
*Transparency & hidden fees:
Some lenders have hidden fees, or terms that are not favorable to you. Completing a comprehensive review and comparing more than 1 lender will unveil the full picture and ensure that you don't encounter any unexpected "surprises" later on!
*Local market & industry knowledge:
Lenders with robust knowledge of the current market, and industry as a whole, are more likely to provide thorough insights and even better quality service. Their understanding can be an advantage to you, AND to the seller!
Before we submit an offer I will ensure that your monthly payment, and estimated closing costs, are described to you in detail, so you know where you stand and how the months/years ahead will look financially! Your lender should be able to write this up for you within a matter of 30-45 minutes!
I am not a financial professional, so I will rely on them just as much as you do to be clear and responsive!
WHAT DOCUMENTS DOES A LENDER NEED FROM ME?
In order to get pre-approved for a mortgage your lender will likely require a number of documents from you to verify your income, assets, and your credit-worthiness. Here are a few you should have on hand when you reach out:
*Government issued photo ID (driver's license or passport)
*Proof of income AND employment (Paystubs, W-2s, and sometimes up to 2 years of tax returns. They may also require business licenses or financial statements if you are self-employed)
*Bank statements (2-3 months worth from your checking, savings and investment accounts)
*Investment account statements (Stocks, bonds, etc. will likely be included in your application for a loan)
*Mortgage statements (if you own a home)
*Gift letters (if you're expecting any gift funds you will likely need a gift letter from the donor that outlines the amount and purpose of their gift to you)
Gather your documents electronically in advance, if possible, to expedite the process!
Be prepared to answer questions about your employment, income, and debts you may have.
Specific requirements may vary, but being prepared will prove helpful. You can ALWAYS ask what they'll need to see before you agree to work with them.
HOW WILL YOU SEND ME HOUSES TO VIEW?
Homes will be sent in a myriad of ways! The most common will be directly from the MLS in your preferred area. You will receive an email asking you to create a portal, and even download an app in most cases, to help you view properties faster! You may also receive homes from Zillow, Realtor(.) com and my personal IDX website based on your needs and what I find!
You can designate me as your agent on Zillow and set up a search there, too!
CAN WE SCHEDULE SAME DAY SHOWINGS?
If allowed by the seller, and our schedule has room for it, I will strive to accommodate showings of the properties you're most interested in to be as soon as they can be! Properties listed as "Go & Show" have easier same-day access for viewings, but I will happily work to make your ideal day & time work!
Homes that require an appointment to show may not be feasible for same-day showings. To ensure the smoothest experience, please provide a list of properties you wish to see the day prior so I can map them out, schedule accordingly, and pull as much information about each one as possible to get the most out of our showing time!
Please be informed that I am a work-from-home mom, and my kids will ALWAYS be my first priority. When I do not have childcare for them they will likely attend meetings and showings WITH me. If this makes you uncomfortable, or you're not sure you'll get the care you deserve, we can work to schedule your showings and meetings on days & times that they are not with me. I will never take offense to this request, but I cannot accommodate if you do not tell me!
IF I'M LATE CAN WE STILL SEE THE HOME?
Of course! As long as we are still within our scheduled showing window, which tends to be about 30 minutes long. However, if you are more than 15 minutes late it may be difficult to view the property in a timely manner. Usually we have more than 1 showing scheduled and need to honor the time slots we've requested, since many sellers still reside in their homes and have made arrangements to give you privacy to tour it at your designated time. I appreciate your patience and understanding, and I will do my best to accommodate you or reschedule when needed.
I REALLY WANT TO SEE THIS HOME! HOW DO WE SCHEDULE IT?
Usually sellers prefer a 24-hour notice prior to scheduling a showing. If a home stands out to you you can screenshot it and send it to me in a text so we can determine the home's availability to be shown! In the event we can see the home the same day I will let you know right away! Every attempt will be made to accommodate same day or next day appointments, but due to scheduling they may not be guaranteed. Please send me the homes you like in order of MUST see first, so I can get those scheduled sooner!
BUYER DO'S & DON'TS WHEN UNDER CONTRACT
DO:
*Gather your down payment and closing cost funds, and verify that you have the necessary funds readily available to cover down payment, closing costs and any moving expenses. Follow up with your lender to determine these amounts more accurately.
*Review your loan commitment letter carefully and ensure the interest rate, loan amount, and closing costs align with your expectations.
*Communicate ANY financial changes to your lender immediately! Especially changes to employment or debt-to-income ratios.
*Consider setting up a dedicated account to hold your down payment and closing cost funds throughout the escrow period. This helps keep the funds available without allowing you to dip into them or accidentally spend any.
DON'T:
*Make any large purchases, including but not limited to furniture, new cars, or pricey credit purchases that will impact your debt-to-income ratio or raise red flags for your lender & underwriter.
*Get new credit cards, or rack up expenses on an existing card. Your lender will need to re-run things, and you may no longer qualify for the loan type or interest rate you were previously approved for!
*Change jobs or income sources. Maintaining stable employment is part of your pre-approval, and is crucial to the closing process!
*Miss any loan payments! Ensure you remain up to date on payment of your debts to avoid jeopardizing your loan approval.
*Move large sums of money, or create any unexplained transfers of funds. These create red flags for your lender that can be avoided by communicating with your lending team PRIOR to transferring funds.
*Co-Sign any new loans, yes even a small one! As much as I advocate for helping friends and family, I encourage you to WAIT and consider your personal loan needs first. Even a small loan can complicate your financing, and even potentially disqualify you from buying!
CAN YOU STILL HELP ME IF I AM NOT IN TOWN/LOCAL FOR TOURS?
Of course! I have a couple of methods we can lean on for home tours, depending on your needs & interests.
*In-Person - the traditional method that will allow you to explore the space more hands-on.
*Virtual - a great way to include other people in the tour, or tour homes from afar. This method also works if you're unable to attend showings due to work, health, or other various reasons.
During both styles of tour I will provide commentary highlighting the good, bad, and ugly about each home, and addressing your questions and concerns right away. I will point out issues, or features you may not have seen, and discuss the functionality and feasibility of things most important to YOU! (ex: will our king size bed fit in this room? how much room for storage is there in the attic? can I park both cars in the garage?)
I'M MORE INTERESTED IN NEW CONSTRUCTION, DO I STILL NEED A REALTOR?
Yes! Just like a pre-owned transaction, the new build's representative is there to work on behalf of the builder, NOT you! There are instances in which a builder can increase/change your home's price during your contract and without a Realtor®️ there to navigate this with you you may not be able to negotiate things as clearly/thoroughly. We can often negotiate upgrades, timelines, and inspection repairs for you too - decreasing the stress of the situation and allowing you to get exactly what you want!
HOW LONG IS OUR REPRESENTATION AGREEMENT?
I currently offer representation agreements one of 2 ways.
1. A single property agreement - this allows me to show you 1 home and we agree on the terms before seeing that home. Those terms only apply to that home. This is often used for buyers who are not quite as committed to their buying timeline, or who feel uneasy about locking in with 1 broker for an extended period of time. I understand it's a big decision and my goal is to educate, never to pressure or coerce.
2. An extended period buyer broker agreement - this allows me to show you all the homes you like, and the terms agreed upon apply to the time we agree on (6-month increments) rather than re-discussing it prior to every single house. This is best for a more serious buyer, or someone who feels excited to work with me.
Either way I want you to feel in control and educated, and we will discuss your questions thoroughly before signing any documentation!
If you feel that, at any point, you are not receiving the best quality service, we can discuss the termination process. On the opposite side, we can discuss making your agreement longer if you have any extenuating circumstances, or just wish to move slower in the process!
WHAT UPFRONT COSTS ARE THERE WHEN BUYING?
There are a few upfront costs to be aware of:
*Earnest Money - this is held in an escrow account and will be credited back to you at closing, and is USUALLY refundable if anything happens throughout the transaction.
*Inspection(s) - There are a few inspections you can choose from, but at least 2 that I/your lender will require or suggest:
Full home (about $200-$500)
Termite & Dry Rot (about $60-$100)
We can discuss all the options and prices for any other inspections you may wish to have done!
Other costs to consider/expect:
*Title policy - varies on the price of the home
*Appraisal - about $500-$700 (ordered by the lender)
*Survey - usually an expense for the seller, but can cost about $400-$600 (ordered by title if needed)
*HOA transfer fees - varies based on the HOA - this is usually a seller expense
*Closing costs - these range from 2-6% of your loan amount
*Down Payment - this varies depending on your loan type and the benefits your lender has worked out for you. This is typically 0-20% of the purchase price
HOW DO YOU GET PAID? DO I PAY YOU?
My standard compensation for services rendered to buyers is 3% of the home's final sale price. In many cases, the seller covers most, if not all, of that cost. However, it is vital to be aware of the recent NAR legal cases regarding commissions.
These have opened the door for sellers to negotiate the compensation rate with their listing agent, and they may not be willing to cover all of, or any of, the compensation I charge. If this is the case I will be transparent with you about the difference between my proposed compensation and the amount the seller is willing to cover.
We will discuss how you'd like to proceed, and what the options are, which include potentially adjusting my fee, negotiating with the seller to reach a fair agreement, or working my compensation into the purchase price. We have options and will discuss them thoroughly before moving forward, because it is always my goal to ensure you have a smooth and successful home buying experience! I am focused on, and committed to, clear and transparent communication and advocating for your best interests.
CAN I GET MY CLOSING COSTS PAID FOR?
There are 2 main ways that we can get some, or even all, of your closing costs covered!
*Seller concessions - this is when we negotiate with the seller to contribute towards your closing costs. This is common, even in competitive markets. In some cases the seller may ask us to increase the purchase price by the amount we're asking for so they can break even, that is also common!
*Lender credits - some lenders offer programs with lower interest rates in exchange for a higher upfront fee that can cover some of your closing costs.
IS OUR CLOSING DATE GUARANTEED?
We always aim to close on-time, but the date is flexible due to a number of factors! It's better to consider the date listed in an offer/purchase agreement as a "goal date" than a for sure.
Why?
*Loan approvals: Mortgage lenders sometimes encounter delays during underwriting, or require more time if the buyer is contingent on the sale of their home first.
* Title issues: Unforeseen problems with the title, solar company, HOA, etc can arise, so we may need to arrange an extension if this occurs!
*Inspections/appraisals: Some appraisals return "dependent on repair" or the buyer may have inspection repair/remedy requests to consider. These may lengthen the closing time frame, but not always.
*Gaps with communication: Sometimes, delays occur due to miscommunication between different parties involved in the transaction. We're all human, so we'll shift to accommodate and make the best of every situation.
I will keep you in the loop along the way, and promise transparency throughout the deal. I also do not advise scheduling movers, or changing utilities,etc, until we receive confirmation on a firm closing date!
We'll tenatively schedule things for a day or two AFTER the "goal date" to avoid issues, and do our best to all remain flexible when necessary!