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Frequently Asked Questions-Buyers
What is the most common reason for losing a down payment?
Answer: A good Attorney will usually prevent this problem. However, a Buyer
can get into trouble if they do not apply for a mortgage promptly, lie on the
application or are not ready to close according to the terms of the contract.
When should I apply for a Mortgage?
Answer: As soon as you decide to start looking for a home. Many Seller's will
not accept your offer if you are not "Pre-Approved"
What is the difference between "Pre-Qualified" and
"Pre-Approved"
Answer:
"Pre-Qualified" usually means that the Lender has determined the
maximum loan that it will approve based solely on the information provided to it
verbally by the Buyer. It is without verification
"Pre-Approved" usually means that the Lender has made the same
determination, but with verification, based on written documentation (including a credit
report). The Lender will confirm your employment, source of down payment
and other aspects of your financial status. Since this requires more research by the Lender, it is more
reliable and carries more weight.
What is an Escrow Account?
Answer: An Escrow Account is a reserve or account that is set up so your Lender can
pay your real estate taxes, property insurance and mortgage insurance (if
needed).
What is a Survey?
Answer: A survey is a drawing of the property showing the perimeter boundaries and
marking the location of the house and exterior improvements
Will I have to get a Survey?
Answer: Maybe. The Seller provides one as a courtesy if it has a copy.
Also the title company will try to get one from the previous title company. If
one cannot be found, then the title company cannot guarantee the boundary lines.
However, it may be advisable to get a new survey even if one can be found. If there were any improvements (including fences) made by the owner or its neighbors after the creation of the survey, if is likely that the Buyer will be unable to tell if they cross over the boundary lines. If any of these new improvements block access to a portion of the subject premises (like a fence or wall), it might create a boundary line issue which will create difficulty when you sell the property.
Should I buy a home from a Seller without a Real Estate Agent?
Answer: It is preferable to use a Real Estate Agent when looking for a home.
Sellers tend to be more accountable and disclose more when an Agent is
involved. Further, without an Agent Sellers tend to overprice their homes
(like most people, homeowners tend to think that their home is worth more than
similar homes). Additionally, negotiations and questions regarding repairs
are more difficult without a "middleman" because Sellers tend to
become offended when you question their homes.
Who pays for the Real Estate Agent?
Answer: The Seller.
What is usually not included in my Attorney's fee?
Answer: The fee generally does not include uncustomary work such as leases,
powers of attorney and non local closings. It also does not include the
Lender's Attorney's fee.
Who pays for the Title Search, Title Insurance and Survey?
Answer: Usually the Buyer. However, the Buyer may not need to get a new
Survey if the Seller has a good one to provide or if one can be found by the
title company
When can I schedule a closing?
Answer: The following must be in place: 1) The Title must be fully clear; 2)
The Seller must be ready and able to close; and 3) The Bank must be clear for
closing (this is different that just receiving a commitment letter). If these
are all clear, then the closing could be ready to take place within a few days
provided all of the parties are willing and available.
What is an "on or about closing date"?
Answer: Most of the time a contract provides for an approximate closing
date. This is different than a target date. Typically the parties
must close within a "reasonable" period of time after the date stated
in the contracts. Usually there is a 30 day window, but that is not
guaranteed and should not be counted on. Within a few weeks of that date
is more common.
When can I take possession?
Answer: Unless otherwise agreed to, you can take possession as soon as the closing
is over.
Can I inspect the House before I close?
Answer: Yes. You should do a "walk through" the day before the
closing. If you wait until the morning of the closing, you may not provide
the Seller enough time to fix the problem or you enough time to investigate it
further.
What type of deed will I get?
Answer: In Lower New York, you will usually get a "Bargain and Sale Deed with
Covenant Against Grantor's Acts" which assures the Buyer that
the Seller has done nothing to affect the title. However, if you are getting title from an estate, you will
probably get an "Executor's Deed" or if from a foreclosure, a
"Quit Claim Deed". A "Quit Claim Deed" makes no
representations at all.
See also