4 FAQs About Buying a Home - ANSWERED!
For first-time home buyers or buyers who have been out of the real estate market for several years, buying a home can seem like a complicated process. There are so many small details to be handled that it's easy for home buyers to become overwhelmed.
As your trusted real estate agent for the Colorado Springs area, I'm here to help. Here are some quick answers to the questions I hear most often about buying a home.
Why Should I Hire A Real Estate Agent To Represent Me?
You should hire a Realtor for the same exact reason that I'm writing this blog. Real estate transactions are incredibly complex with lots of working parts. An experienced real estate agent knows what to expect and how to handle any issues that may arise, which will help make your experience of buying a home in Colorado Springs much more stress-free.
How Much Money Will I Be Required To Pay Up Front?
This is a common question among home buyers, but unfortunately a difficult one to answer. The amount buyers are required to provide as a down payment varies drastically depending on the amount of the loan, the type of the loan, and the buyers' credit ratings.
When you buy a home with The MacGuire Team, though, the down payment is the only money you will expected to provide. There is absolutely NO other cost. The seller/builder is responsible for all the fees!
Why Should I Buy Instead Of Rent?
Buying a home is an investment. When you write your monthly check for rent, you're sending that money off to your landlord and resign yourself to the fact that you will never see it again. When you write your monthly mortgage check, on the other hand, you are building equity in your home. Ideally, you will get all of that money back if/when you decide to sell your home - and you may even get more money back from the sale than you originally paid for it!
What Is The Current Interest Rate?
As of February 6th, 2015, interest rates have reached a record low - they're ranging anywhere from 4.375% to as low as 3.5%. The specific interest rate you will be able to lock in for your mortgage will depend on the type of loan you get, the amount of money you borrow, and your credit score. Rates are expected to go up, though, so it will probably be in your best interest to buy sooner than later.
Do I Need To Get Prequalified Or Preapproved?
The short answer is "both." You will need to go through the prequalification and preapproval process before you can become fully approved for a mortgage loan. You don't need to have either of these steps completed before touring homes, but it is strongly encouraged to at least get prequalified beforehand.
As your trusted real estate agent for the Colorado Springs area, I'm here to help. Here are some quick answers to the questions I hear most often about buying a home.
Why Should I Hire A Real Estate Agent To Represent Me?
You should hire a Realtor for the same exact reason that I'm writing this blog. Real estate transactions are incredibly complex with lots of working parts. An experienced real estate agent knows what to expect and how to handle any issues that may arise, which will help make your experience of buying a home in Colorado Springs much more stress-free.
How Much Money Will I Be Required To Pay Up Front?
This is a common question among home buyers, but unfortunately a difficult one to answer. The amount buyers are required to provide as a down payment varies drastically depending on the amount of the loan, the type of the loan, and the buyers' credit ratings.
When you buy a home with The MacGuire Team, though, the down payment is the only money you will expected to provide. There is absolutely NO other cost. The seller/builder is responsible for all the fees!
Why Should I Buy Instead Of Rent?
Buying a home is an investment. When you write your monthly check for rent, you're sending that money off to your landlord and resign yourself to the fact that you will never see it again. When you write your monthly mortgage check, on the other hand, you are building equity in your home. Ideally, you will get all of that money back if/when you decide to sell your home - and you may even get more money back from the sale than you originally paid for it!
What Is The Current Interest Rate?
As of February 6th, 2015, interest rates have reached a record low - they're ranging anywhere from 4.375% to as low as 3.5%. The specific interest rate you will be able to lock in for your mortgage will depend on the type of loan you get, the amount of money you borrow, and your credit score. Rates are expected to go up, though, so it will probably be in your best interest to buy sooner than later.
Do I Need To Get Prequalified Or Preapproved?
The short answer is "both." You will need to go through the prequalification and preapproval process before you can become fully approved for a mortgage loan. You don't need to have either of these steps completed before touring homes, but it is strongly encouraged to at least get prequalified beforehand.
- Prequalified: This means you have spoken to a lender and, based solely upon the information you provided, he/she provides a written statement that they believe you will qualify for a loan.
- Preapproved: This means that you have submitted a formal loan application and have provided the lender with tax forms, pay stubs, bank statements, and the other materials he/she needed in order to determine that you will legitimately be able to qualify for a loan.
Being prequalified or preapproved before you begin looking for a home shows the sellers that you are serious. Preapproval is stronger, so if you are ready to seriously search for a new home, getting preapproved is your best option.
Which Real Estate Agent Should I Hire?
That's easy - The MacGuire Team! We work very hard to ensure that our home buyers have the best possible experience. We guarantee that there will be absolutely NO costs, and we will make sure that all of your questions are answered satisfactorily. The bottom line is... We don't work to "sell" you a home - we work to protect you from buying the wrong home!
Mike MacGuire
Colorado Springs Real Estate Agent
The MacGuire Team
6760 Corporate Dr
Ste 300
Colorado Springs, CO 80919
719-536-4324 or 719-660-6793
Mike@BuyWithMike.com
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