General Questions
NextPoint Properties has more than 15 years of experience in handling numerous real estate home sales. We know that Sellers are often overwhelmed or confused by the process. We want to show you, the homeowner, how to sell a house on your own – with our help.
How do I go about selecting a mortgage lender?
The best way to select a lender is to ask people who are familiar with the home buying process. Your attorney and our discount realtors can be great sources of information, as they deal with home financing on a daily basis. Also, keep in mind that different lenders have different loan products whose benefits may vary, depending upon several factors such as: the borrower’s credit score, employment status, and amount of down payment. In any event, don’t get caught up in making your decision based upon the interest rate alone. Often times, one lender’s interest rate may seem low. However you may have to pay points or additional closing costs to obtain that lower rate. Also, make sure that your loan does not have a prepayment penalty, which may cost you money if you decide to refinance or sell your house.
I'm looking to sell my house and buy a new home. How should I start?
Always put your house on the market before you go looking to purchase a new home to avoid getting yourself into the tough financial situation of carrying two mortgages at the same time. Realize that in today's real estate market, few sellers are willing to accept an offer contingent upon the sale of your home, especially when your home is not even on the market. If you are ready to choose a discount realtor or flat fee broker contact NextPoint Properties, and we will get you started right away by signing up online for our services. Sign up now!
I'm ready to start looking. What do I do first?
First thing you should do is request a copy of your credit report to check for inaccuracies, as studies suggest that at least half of all reports have at least one error. Getting a copy early in the process will give you time to fix any mistakes. You can get a copy of your credit report by visiting www.equifax.com or www.experian.com. Next, you must figure out what price range of house you can afford.
What are Title Problems?
Often times, a review of the title to your home by the bank attorney will reveal that there are outstanding documents that need to be recorded at the Registry of Deeds before you can sell your home. Most common title problems are prior mortgages which you have paid off during a refinance. However, they have not been properly released at the Registry. Today, it can be extremely difficult to obtain these discharges as more and more banks are selling their loans or merging with other banks. This is another reason why you need to be represented by a qualified real estate attorney when selling your home. This is one more reason why signing up online with NextPoint Properties, a discount real estate company—with their flat fee MLS and unsurpassed legal advice - is such a great service at a great value.
What is a 1031 Exchange?
The Internal Revenue Service Code Section 1031 provides a vehicle for deferring capital gain taxes while disposing of investment property. In order to realize this tax deferral, the exchanger (Seller) must reinvest all exchange proceeds to acquire like-kind property, and acquire like-kind property of equal or greater value. Your NextPoint Properties discount realtors will assist you in this practice, as we work with the area’s most accomplished 1031 Exchange companies.
What is a Finance Contingency Date?
The finance contingency date is one of the most important sections of your real estate contract, as it pertains to the date upon which the buyer must secure financing. If the finance contingency date is allowed to pass, and the buyer fails to secure financing, the buyer’s deposits will be put at risk
What is a Pre-Sale Home Inspection?
As you are aware, in most circumstances, the buyer’s offer is contingent upon an acceptable home inspection. Often buyers use the results of the home inspection to demand repairs, request additional inspections, seek to lower the purchase price, and in some instances, use it to back out of the deal. A pre-sale home inspection can provide the seller with a list of defects that may arise, affording the seller time to make repairs in a cost-efficient manner. This allows the sale process to go more smoothly, as there are no surprises that may delay or kill the deal. Copies of this inspection report, along with the receipts of the repairs, should be made available to potential buyers.
What is the difference between a pre-approval letter and a pre-qualification letter?
When dealing with a potential buyer, it is important to request a pre-approval letter rather than a pre-qualification letter, before accepting an offer. The reason for this is that a pre-qualification letter is obtained by simply providing some basic financial information to a bank or mortgage company. However, the information provided is not verified by the lender. By contrast, a pre-approval involves verification of the information submitted, including employment verification, and bank statements showing the source of the down payment. As this document is more time consuming to obtain, the potential buyer with a pre-approval will certainly be more serious about purchasing your home.
What is the Multiple Listing Service (MLS)
The Multiple Listing Service is an online database that shares information about home listings between real estate professionals. A listing on MLS contains all the details about the home for sale, including the address, approximate living area, number of bedrooms, number of bathrooms, age of home, price, and photos of the home and surrounding property. The MLS is a database used by more than 30,000 realty professionals in the New England area, to search for homes for their clients. In order to list a home on MLS, the Seller must agree to compensate buyer agents. MLS is the single most successful tool in the real estate industry to expose your home to potential buyers.
What must I disclose about the condition of my property?
A seller must disclose all known material defects of your property. Normally, these disclosures are listed on a Seller Disclosure Form prepared before you list your home. Even if a defect has been repaired, you should still disclose the issue, along with a report of the completed repairs.
Which loan is best- A fixed or adjustable rate mortgage?
The answer depends upon how long you plan on owning the home you are purchasing. If you plan moving in a few years, then an adjustable rate loan may make more sense as the interest rate will be less than the fixed rate loan. Adjustable rate loans traditionally come in 1-, 3-, and 5-year adjustable terms. However, the risk is that if the interest rates are higher when your loan adjusts, then your interest rate will also increase. In contrast, a fixed interest rate will remain the same for the term of your mortgage. Your interest rate is determined by the stock market and other financial indicators.
