FAQ’s
Frequently Asked Questions
It is a very good idea. And it is easy. You should want to be prequalified.
There are two reasons to get prequalified for a loan.
1. Most sellers will want to see a prequalification letter from a reputable bank before they accept your purchase offer.
2. The lender will let you know how much you can borrow and give you an idea of your monthly payments. This will help you search in a comfortable and realistic price range.
I have narrowed my recommended lenders down to one. I will be happy to share this information with you!
The costs vary widely depending on the type of loan and the conditions of the purchase agreement. It is not unusual for the seller to pay $5000 of the buyer’s closing costs. Here are some of the more common charges.
Loan origination fee – 1% of the purchase price
initial escrow deposit – $1000 to $2000 (insurance and taxes)
Prepaid interest – up to one month of interest
title insurance - $1500 to $2500
transfer taxes - $2000 to $4000
survey $300
home inspection $400
appraisal $400
VA funding fee – 1.25% to 3.3% (only for VA loans)
Ask for a “good faith estimate” from your lender. This will give you the most accurate estimate of the closing costs for your unique situation.
The costs vary widely depending on the type of loan and the conditions of the purchase agreement. It is not unusual for the seller to pay $5000 of the buyer’s closing costs. Here are some of the more common charges.
The biggest cost for the seller will be the brokerage fee which can be up to 6% of the sale price.
You should have one. A home inspection can help you discover potentially costly hidden problems before you commit to buy a home. I have a great home inspector who I trust completely. Here’s a guide I put together for sellers.
Only if you are buying a home in parts of Norfolk, near the Chesapeake Bay or Atlantic Ocean. For most areas it is not required. For high risk areas, flood insurance can run $1500 per year. It is usually as easy as asking the current owner.
You should plan on a minimum of 30-45 days from purchase offer to closing. It can take longer with bank owned properties because of all the bureaucratic red tape. For short sales it can take months, and then just when you think everything is ready to go… the home goes to foreclosure auction and you have to start all over again (true story).
Your home’s value is determined by the neighborhood, condition, size, and amenities.
Neighborhood - If the last ten homes in your neighborhood have sold between $400,000 and $450,000, there is a very good chance that yours will too.
Size - Larger homes will sell for more than smaller homes, everything else being equal.
Condition - If your home has been well maintained and is clean and sparkly, it will be more appealing to potential buyers and will sell for more. Staging is also very important.
Amenities - Updated kitchens and bathrooms help sell homes! A home with a beautifully landscaped backyard and deck is more appealing than a barren backyard full of crabgrass.
While an appraisal can give you the impression that there is a mathematical formula to determine a home’s value, there is not one. The best you can realistically hope for is a value range and a best guess from an experienced intelligent agent (like me!)
Of course! There is no better place to sell a home. The vast majority of today’s buyers find the home they eventually buy online. When a home is put on the MLS (Multiple Listing Service) it is automatically fed to hundreds of local and national real estate websites. As potential buyers search for homes, they will be able to click through pictures. This is as close as you can get to experiencing a home without actually walking through it. Buyers want to experience homes. The virtual tours online allow them to do this.
So, it should go without saying that I put a lot of effort into taking quality pictures and creating a pleasing online shopping experience!
