Buyer's FAQ:

Q. What should you do first - Buy or sell?

If you already own a home, you may be asking this very question. And the right answer may not be the same for different people. The general consensus among real estate professionals would be to list your present home and shop for your new home simultaneously. However, depending on the market and/or your individual needs, this may not be the most advantageous method to use. In a very robust real estate market, a home could sell within a few days of listing. So if you have very specific criteria for your new home with regard to location, size, views, age, etc., in a competitive market you may want to begin searching for and buying that home first before you sell your existing home. Your Monster Real Estate.com associate will discuss with you fully your individual needs and circumstances to help you find the right solution.

Q. How many homes should I plan to view and how should I make the final decision?

Traditional practice in real estate dictates that you should visit a number of homes to get an idea what you can expect to get for your money. With the proliferation of the internet and search engines like the one provided by Monster Real Estate.com, buyers have the power to scan the market for homes without the burden of travel. With Monster Real Estate.com's website, buyers can locate homes they believe they are interested in, and view them right away. Thanks to this convenience, you may see only one house before you find the right home for you. Of course, it probably will take longer than that, but the time spent spinning you wheels on unsuitable homes will certainly be cut.

Q. How can I check my credit rating before I apply for a mortgage?

Your credit rating is based on a combined score generated from three credit bureaus who look at your credit history, amount of credit available, and recent inquiries to determine what's called your FICO score. A smart way to go is to have your Hamilton National Mortgage Co. loan officer check your rating for you and, if appropriate, suggest ways for you to improve your credit. For a small fee, you can get your score or review your credit report by going online to www.myfico.com or contacting the credit bureaus directly at:

Q. Why should I consider paying points?

Buyers often choose to pay a one-time charge called mortgage "points" in exchange for a lower interest rate. Usually paid at closing, each "point" costs 1% of the mortgage amount, or $2,000 on a $200,000 loan. The lower rate reduces the monthly mortgage payment, and points paid in conjunction with the purchase of a home are generally tax-deductible in the year they're paid (see tax advisor). Monthly savings will often exceed what was paid in points in just a few years' time.

Q. What is title insurance and why do I need it?

Title insurance ensures clear "title" to the property. In other words, it is insurance that guarantees that the buyer of a property is the rightful owner of that property after settlement, and that no claims exist on that property other than those subscribed to by the buyer (i.e. a mortgage to purchased the house). This is the most complete way to ensure ownership of the property. Mortgage lenders require title insurance, not only to protect their interest in the property, but also to protect the buyer. Buyers / mortgage borrowers have the right to choose any licensed title company they wish to provide title insurance. Title insurance rates in Pennsylvania are state regulated, so the cost from one provider to the next is very similar. Monster Real Estate.com has a cooperating relationship with Nationwide Search And Settlement Services LLC which helps make the settlement process much smoother for all parties involved.

Q. What happens if the house I want to purchase does not appraise at the amount expected?

If the house doesn't appraise at the amount expected, an alternative to the original agreement must be reached. In some cases, the agreement to purchase is terminated. In other cases, the sales price can be renegotiated, or the terms of financing restructured. In other cases, more creativity is required. But because a home does not appraise for the expected amount does not necessarily mean there is no recourse.

Q. Is there an advantage to securing a mortgage credit approval?

Enlisting the help of Monster Real Estate.com before you begin your search will make your journey a more pleasant one. They can offer you a one-stop solution that will help you secure a mortgage credit decision before you shop for your home. An approval will take the mystery out of what you can afford, and will certainly give the prospective seller more confidence in you. When multiple buyers are bidding on the same house, a mortgage credit approval can be the deciding factor in whose offer gets accepted.

Q. How much should I offer?

There are a number of factors that will affect the offer you make. Supply and demand, the condition of the home, how long the house has been on the market, and your personal circumstances with regard to how soon you need to close on a home all come into play when framing your offer. You might also weigh in the demand for the home and how much you really want it. If you "low ball," some sellers will react with a counter offer; others might dismiss your offer outright. In an active market, you're likely to lose out by making a low bid. If multiple bids are anticipated, it's advisable to go with your "best offer." Your sales associate will advise you on ways to make your offer more attractive: for instance, a mortgage credit approval and flexibility on the closing\settlement date can help make your offer stand out and ultimately close the sale. Your Monster Real Estate.com associate, a neighborhood specialist, will help you think through all of these issues so you can determine what is the best offer for you to make at the time.

Q. What is involved in a home inspection and is it necessary?

While only certain inspections are required by mortgage lenders or government mandate, a comprehensive home inspection is considered a wise thing to do when purchasing a home. However, since it is not required, the buyer must pay for it. It is also recommended that at the time of the inspection, you accompany the home inspector so that you can learn firsthand as much as possible about the home you are about to purchase - including such basics as where the main water shut-off is and electrical distribution boxes are. Mortgage lenders typically require inspections for wood-destroying insects. Inspections mandated by the state or municipality could include: smoke alarm inspection, testing of well water, septic system test, and a certificate of occupancy - all of which are typically paid for by the seller. All other inspections are generally paid for by the buyer and must be done within a specified time frame, as indicated in the contract. Some insurers require inspection of underground oil tanks.

Q. What if the inspections turn up problems?

Almost every home inspection reveals some imperfection in a home. This is no reason to panic. The important question is "how severe is the problem". Very often, a home inspector will discover something that may simply be irregular or aesthetic. Other times an inspector will uncover a problem that is inexpensive to fix or simply not important. Some times, though, a severe problem will be found. What must be addressed is the level of desirability of the home versus the severity of the problem. In most agreements of sale, a buyer will address the types of recourse that may be taken when a problem is discovered. Based on those guidelines, a buyer may neqotiate the contract to address the problem and still purchase the house or terminate the contract.