What is a REALTOR®?

A REALTOR® is an agent or agency that belongs to the local or state board of REALTORS® and is affiliated with the "National Association of REALTORS® (NAR). They follow a strict code of ethics beyond state license laws and also sponsor the Multiple Listing System (MLS), which is used to list houses for sale.

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What is the difference between being prequalified and preapproved for a loan?

The difference between being prequalified and preapproved is simple:

If you're prequalified, it means that you POTENTIALLY could get a loan for the amount stated to you, assuming that all of the information given was accurate and true.

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.  You're APPROVED!  So, they give you a letter that states such and it is valid for a approximately 60 days thereafter.

Notwithstanding the above, you will have 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.

Besides making my monthly mortgage payment, how can I build equity into my house?

When making your monthly mortgage payment, try to send a little bit more.  This will go directly to the principal of the loan rather than the interest. Even an extra $50.00 per month can quickly build your equity, as well as knock years off of your loan.

    Why should I use a real estate agent?

A real estate agent is more than just a "sales person."  They act on your behalf as your agent, providing you with advice and guidance and doing a job - helping you buy or sell a home.  Due to the fast changing market, the data on available listings is not 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 an agent.

There are two types of agents, "Buyer's Agents" and "Seller's Agents".  It used to be common for all parties involved to work for the seller, hence the term "Seller's Agent".  Nowadays, you will most often find a different type of agent, the "Buyer's 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.  If you happen to be working with a Seller's Agent, never disclose to them the top dollar you are willing to pay for any property.  Keep it narrowed down only to things that you would tell the seller directly.



If I want to buy a house and I know the property and the seller already have an agent, can I act as my own agent and negotiate a lower fee?

It is not recommeded that you represent yourself as the buyer or the seller. The seller pays the real estate commission, not the buyer, and real estate commissions are already set in the listing contract. It doesn't cost you anything to have your own agent represent you because the seller is already paying for it.

I looked at a property yesterday with a REALTOR® who seems to be clueless.  I am really interested in purchasing the property, though. Can I switch agents and still make the purchase?

If you truly want to purchase that property, the only ethical thing to do is to purchase it through the REALTOR that showed it to you. Otherwise, a situation could be created that could set up potential conflicts between your previous agent and whatever new agent you may choose.