Updated 8/3/2010
Buyer's Frequently Asked Questions
Q. We are moving to San Antonio but don't know how long we will be there. Should we buy or rent a home?
A: This particularly applies to those of you in the military or have professions which require you to move frequently. Having spent a long time in the Air Force moving all over the place, I can relate to having to pack up the family and dog and go someplace else to live.
My "rule of thumb" if you think you are going to be here less than two years, renting a home might be best for you. If you are going to be here longer then consider buying a home which can be cheaper than renting. When you make improvements to a rental home such as painting, hanging wall paper, etc., you have made your landlord's house look better. But when you make improvements to a home you are buying, you have done so to your property and possibly increased its value.
Q. Will we be able to sell the home when it comes time for us to leave or move up?
A: Our market in the San Antonio area has been very stable compared to a most locations in the United States. In my opinion, selling a home comes down to the the right price, appearance of the home and excellent advertising. Your home has to be competitive with other "for sale" homes and new homes being built in your area. I can't guarantee we can sell your home but I will do everything in my power to make it happen...and I'm very good at my job.
Q: What will my monthly payment be?
A: Typically, your payment will be approximately 1/100th the amount of the loan. Example: if the home costs $80,000, your payment will be approximately $800.00 per month. If it costs $95,000, the payment will be close to $950.00 per month. This "monthly payment" includes your taxes and insurance escrow payments. Your payment may be higher or lower depending on the variables such as current interest rate; type of loan; amount financed, etc..
Q: How do I know if I qualify for a loan?
A: This is not a simple question to answer because there are many variables in getting a home loan. Normally, good credit (FICA) scores; a steady income and acceptable debt ratio are the main qualifiers. I highly recommend you get "pre-approved/qualified" for a home loan before you start looking. We really need to know who much home you can buy before you get your hopes built up. Not all mortgage companies are equal in the services they provide and or ability to successfully complete the transaction for you. Shop around or ask a real estate professional (such as myself) for a recommendation.
Q: Should we buy a new or pre-owned home?
A: Giving a complete and thorough answer to this question would require me to build another web site. But...
New and pre-owned homes have positives and negatives and present one of the biggest decisions you will be making. It is important that you know what your options are and have a good idea of what is available in both categories.
- New homes: These usually come with warranties and give some "peace of mind" the home won't require any repairs in the near future. Normally you can make selections such as lot location, colors, style, flooring, cabinets, etc. and maybe make a few minor modifications to the design. Most builders have upgrades available so you can customize your new home. The downside....I hope you like yard work because sometimes there is no grass in the back yard and trees/shrubs are few, if any. Hidden costs include having to buy mini-binds, curtains, ceiling fans, etc. which can make the costs add up quickly. Expect to wait from four to six months while your new home is being built.
- Pre-owned homes are usually ready to be moved into. You close the transaction, get the keys, move your stuff into the home and you are there. A lot of pre-owned homes already have upgraded features in place. It's an instant home. On the other side, the home is "used" and comes with some questions such as "how good is the air conditioner...is the hot water tank okay?" I highly recommend you have the home inspected by a licensed home inspector before you buy. This is not a NEW home.
There is no clear answer to "new versus pre-owned." Many factors must be considered before you sign on the dotted line. Viewing both new and pre-owned homes will greatly help you make a confident decision.
Q: Why should I use a RealtorŪ and how much is a RealtorŪ going to cost me?
A: With a purchase as complicated and important as a home, why would you go into it without being represented by a licensed professional? Buying a home is NOT like buying a car. There are numerous people, legal documents and sometimes pit-falls which must be worked with. Title companies, lawyers, loan officers, inspectors, appraisers, repairmen, clerks at the court house...a bunch of people! And...the one person who will get you through all the paperwork and negotiations...your RealtorŪ.
How much does using a RealtorŪ cost you? Normally Realtor fees are paid by the seller, even though the Buyer's agent works strictly for the Buyer. When the Listing Agent took the listing contract the Seller signed an agreement stating the Seller would pay a percentage of the total sale price to the Listing Broker. They also agreed to allow Buyer's Agents to show and sell their homes and understand the Buyer's Agent represents the BUYER. Unless you have entered into a separate agreement to pay for your own Realtor, your Buyer's Agent costs you nothing. As a Buyer's Agent I will be representing you...not the seller.
If you have questions, feel free to send me an email
Gary Prendergast is a licensed RealtorŪ with Real Living, Best Homes Real Estate
REALTORŪ
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