Frequently Asked Questions
1. What is the difference between being prequalified and preapproved for a loan?
If you are prequalified it means that you potentially could get a loan for the amount stated to you, assuming that all of the information you provide to the bank is accurate and true. This is not as strong as a preapproval.
If you’re preapproved, it means that you have undergone the extensive financial background check, which includes looking at your credit history, previous tax returns and verifying your employment and the lender is willing to give you a loan, basically meaning you’re approved!
You will usually be provided an accurate figure which shows the maximum amount that you are approved for. Most sellers prefer buyers that have been preapproved because they know that there will not be any problems with the purchase of their home.
2. What is title insurance?
Title insurance is insurance that protects the lender and buyer against any losses incurred from disputes over the title of a property.
3. What are closing cost?
Closing costs are expenses incurred by buyers and sellers in transferring ownership of a property.
4. What is homeowners association (HOA)?
Homeowners association is a nonprofit association that manages the common areas of a condominium or “planned unit development” (PUD). Unit owners pay a fee to the association in order to maintain areas such as a pool or playground that are owned jointly.
5. What are Condo HOA fees?
When you are looking at Condos you will want to know what the monthly fees are. Every Condo Community has variables regarding Condo fees.
These fees are used to maintain, and insure the building and surrounding lawn, carports, storage area… (you will still want to carry and interior contents policy much like a renters insurance policy)
In addition this fee may items such as: cable, internet, pest control, trash, property management, accounting, water, sewer, irrigation… The list of items included will vary from community to community.
6. How long does the loan process take?
The number of days from application to closing can vary from just a few days to 45 or more days, depending on a number of factors. Some of the factors include: loan type, whether an appraisal is needed, and title clearance. Time delays also occur if outside sources or the borrowers do not promptly provide documents to the lender.
7. Why should I use a real estate agent?
L’inspection n’est pas obligatoire mais fortement recommandé.
A real estate agent is more than just a sales person. A real estate agent may act on your behalf, providing you with advice and guidance when buying or selling a home. Due to the constant changing of the market, the information available on listings is not always 100% accurate. There are times when you need the most current information about what has sold or is for sale, and the only way to get that is with a real estate agent.
If you are in the market to buy, it would be advisable to use a Buyer’s Agent. They can make recommendations on what terms and prices to offer as well as negotiating a deal with your best interest in mind.