Frequently Asked Questions

Should I use a Real Estate agent or try to sell my home myself?
Unless you are very experienced in selling your home and have done it before - do not attempt to sell your home by yourself. The sale of your home involves numerous legal challenges and questions, all of which, if answered wrong, could cost you thousands of dollars, not to mention your home

Why is an appraisal necessary?
An appraisal is ordered by the lender to placate their fears and paranoia, not yours. The seller, buyer and agent know the value of a home. However, the bank knows nothing about it, so they need a report that describes the home and its value. Since the bank is lending the money, they want to be sure the home's value is larger than the loan amount. Therefore, they hire a third-party-independent, the appraiser, to dispassionately determine the value of a home and make the lender more at ease in lending you money.

Should I get the home inspected?
The safest answer is, yes. Before you buy a shirt, you look at the seams and the stitching - right! Well a house is typically the largest purchase you will ever make, shouldn't you be looking at the way it's put together? Every home, and I mean EVERY home including new construction, have dozens of small problems. The small problems are not what can bite you in the wallet, it's the big problems that you need to know about, and a building inspection is the best solution.

What is an Earnest Money Agreement?
This is a contract that outlines who is buying what, for what price, and on what date the money will change hands. While this sounds simple, the actual document can be 10-20+ pages long because it contains every detail, instructions to the closing agent and describes what happens IF someone cannot buy or sell the home by the due date.

How big does the earnest money deposit have to be?
No limit, it's entirely up to the buyer and seller. However, as a rule of thumb, the bigger the deposit, the more serious the buyer. I like to start off with $1,000 earnest money and try for 5% of the home's value, if possible.

What or who controls mortgage rates?
The Federal Reserve controls Discount Rates not Mortgage Rates and the two rates are not connected. In simple terms - The Fed. (Federal Reserve) does not directly control mortgage rates, but the market does. Mortgage rates (long term) are based on the supply of money and the demand for that money and the 10-year Treasury Bond yield.