As you might imagine, purchasing a property entails knowing a lot of information regarding the buying process so you avoid any bump on the road. People are naturally curious and it is a good thing in this situation. But if you are working with a professional who has been working as an agent for many years, it will take you less effort to learn about the technicalities of investing in real estate.
And you could save some money as well by avoiding some of the traps that may present themselves to anyone with little or no experience in this type of real estate investment.
Whether you are a first-time buyer or someone who has bought a property before, you still need some refreshers on how the process of buying a house works nowadays. Regulations and market practices change, so keep up to date. Below are some of the information Kale Realty shares with their clients to ensure that they have the most basic information before they select a property.
Length of the Purchase
Some buyers ask their agent how long it usually takes to buy a home. Under normal market conditions, the average period is between a month to 45 days. However, some prepared home buyers have been known to process everything a lot faster. In hot markets with much sale activity, buying a home might take a little longer. One of the factors that can also slow down the buying process is when there are lender turn-around times for underwritten loans.
You Need To Be Of Age
To be eligible for a home loan, you must be at least 21 years old and should provide your proof of income. Even if you are independent at a young age who has been earning a stable income, it is highly likely that you will stumble into some problems. The termination of the loan must happen before or when you turn 65 years old. Loan regulation is stringent, even more so since the 2008 crisis which some many unprepared borrowers who had to forfeit theit property because of unrealistic leverage ratios.
The Agent Fees
Many buyers also wonder how long they can pay a real estate agent to help them choose and buy a house. Home shoppers pay almost little to no fees at all. For most home sales, there are two agents involved–one that represents the seller and the other represents the buyer. Agents who represent the buyer are usually compensated by the share they get from the money listing brokers get from their clients. However, this is not always the case. So always ask your agent about this.
When you are new to the buying process in real estate, it can be daunting, thrilling and sometimes odd. But when you familiarize yourself with this peculiar process and allow your real estate agent to handle all the complicated stuff for you, things should go smoothly.
Every location is different. What is true in Chicago maybe untrue in New York or Los Angeles. Market conditions and regulations vary from state to state and even from city to city, one more reason to use a knowledgeable agent with inside knowledge about the specific location you are eyeing.