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Buyers' FAQ

Why is it important to use a Realtor?

At First Premier Realty we are diligent in keeping you informed of new listings and will assist you in finding the right home to meet your specific needs. A Realtor will negoitate a purchase price, assist you through the escrow period and monitor all activity through closing such as inspections and appraisals. A realtor represents your best interest.

What is the current interest rate?

Interest rates will fluctuate day to day. Rates will also depend on the type of financing you obtain. A knowledgeable lender will keep you informed. Please click on one of our lender's links to learn more about interest rates or call First Premier Realty and ask a Realtor for the current rate.

What is earnest money?

Earnest money is presented to the seller's agent with a purchase agreement. It is considered a presentation of the buyer's sincerity and is a demonstration of good faith in purchasing a seller's property. There is no standard but the amount should be seriously considered. this is an area in which your realtor can offer advice. Once an offer is accepted by a seller the earnest money is deposited in the Listing Brokerage's trust account. There are specific laws that regulate trust accounts that are intended to protect the funds during the escrow period. Under normal circumstances, at closing, the earnest amount will be credited toward the purchase price. Ask your First Premier Realty Agent for additional information on earnest money.

What are closing costs and how much money will I need?

Closing cost varies depending on several factors. The property's purchase price is one consideration. There are other fees associated with closing cost and are different for buyers and sellers. Contact your First Premier Agent for specifics. They will give you a written estimate of your closing cost.

What can I expect my down payment will be?

Your down payment on a home will depend largely on your particular financing. It is usually a percentage of the purchase price. At First Premier Realty, we work closely with your lender who will assist you with the financing program that best suits your individual needs.

What is an "as built sketch"?

An architectural drawing showing the location of construction and it is less sophisticated less expensive than a survey. Either will usually satisfy your lender's requirements. Identifying lot lines in relationaships to the location of equipment and utility lines.

Why do I need title insurance?

The title company researches the history of the property up to the day of the closing, which is called a title search. This is to make sure there are no liens or judgements that would cloud the title and prevent a buyer from purchasing the property. Title insurance is required for all financed property and generally, the cost is split between the buyer and seller.

Why use a Title company?

The title company is used in all closings regardless if the sale is financed or cash, it is policy of all lenders & Real Estate offices to use title companies.

What is the difference between appraisal and inspection?

An inspection is not required, but is highly recommended. The cost of a home inspection currently ranges from $250.00 - $400.00 depending on the homes size. This is a buyer's expense. it is not necessary to have an inspection to obtain lender financing. A Home inspection is performed by a licensed home inspector. Inspectors evaluate the home's structure as well as the roof, furnace, air conditioning, electrical service, plumbing, plus much more. If any major defects are found the buyer can negotiate repairs with the seller. An appraisal is performed by a licensed appraiser assigned by the lender. This is generally a lender requirement when a buyer peruses a loan to purchase a home. the purpose of an appraisal is to determine the value of the home. this is accomplished using past sales (usually within the previous 12 mos.) of homes with similar features. An appraisal is a lender fee and the responsibility of the buyer.

Do you recommend I inspect my home before completing the purchase?

Buying a home is a major lifetime decision. At First Premier Realty we want you to be happy with the purchase of your new home. Inspections are intended to educate you about the condition of the home. You may decide you want a home, termite, radon or other type of inspection. We have a list of qualified inspectors from which you may choose should you decide to inspect your home.

When can I Move in?

Possession is as agreed by both parties. Most of the time it is the date of closing.