All About Buying - Buying 101

Pre-Qualifyperforming more detailed searches than the average
Should I Pre-Qualify First?website.
Pre-Qualifying is simply one of the first steps toHotsheets
buying a home. It costs you (the applicant) nothingWhat Are Hotsheets?
and it gives the future buyer a good starting ground.Through a program that the MLS offers, Realtors are
Pre-Qualifying allows the buyer to know how muchable to set up buyers with hotsheets that will send
they can spend before ever spending time looking atthem information about a home as soon as it is listed
homes.according to their search criteria. For example, if a
It is especially beneficial because it can usually help aclient were looking for homes near a golf course in
buyer uncover any credit problems that they maythe Salt Lake Area, a hotsheet would send them the
not have been aware of.info by email at the time of day that the client
I would like to Pre-Qualify Nowdesires.
RealtorsOne reminder about working with an agent is that it
How can a Realtor help?costs the buyer nothing. The seller is the one that
Times have obviously changed in the Real Estateoffers a commission to the agent that brings them a
business. With the continuous advances of thewilling buyer. So why not use an agent?
internet more buyers tend to surf the web forCan I Afford a Home?
homes and narrow down their choices before everThe potential buyer is obviously the best (or most
working with a realtor. Most people do not like to beimportant) judge of whether buying a home is right
tied down to a realtor especially if they don't alreadyfor them. While there are many benefits to getting
have a personal relationship with them.away from renting, it is important to know if it is the
Before I talk about how beneficial a realtor can be,right time to buy. Personal circumstances will
allow me to address the issue of Buyer-Brokeralwaysplay a key role.
Agreements. This form is a very common agreementThe only information I can share is the financial.
that is used by most realtors. The intention is a veryTypically, a debt to income ratio of at least 50% is
honest one. In short, brokers/agents agree to help apreferred as a minimum. So if a family's income is
client if the client agrees to only buy with them. It is$3,500 a month, they would preferably have to pay
a way to ensure that both parties are treated fairly.less than $1,750 each month including their future
Unfortunately, it is not unheard of for this form to behome payments).
abused. Occasionally, some realtors will have theirThe best way to know what you can afford is by
clients sign these agreements with alarmingly longgetting pre-qualified for a loan. This costs nothing and
expiration dates. This is how buyers get tied down todoes not mean you have to get a loan.
using one realtor, whether they like the job thatClosing Costs
they're doing.What Are Closing Costs?
At Wright Brothers Real Estate, we believe that theClosing costs at this point can only be loosely
clients and realtors should have a relationship that isestimated. While they can be a bit costly, it is also
based on trust and respect for each other. Generallypossible to negotiate with the seller to have them
a client will not be asked to sign any agreements untilpay a portion of the costs. To get some idea as to
it is time to actually make an offer on a home. If forwhat is involved in closing fees, I have listed a few
any reason the contract on the house falls throughgood sites below.visit:
before closing, the client is released from theirClosing Fee Calculator
agreement and can either continue to work with usWikipedia Closing Cost Info
or find another agent. We believe that if the clientCommissions
does not want to work with us at any time, then weOften, in Utah, the commission paid is about 6% by
have not done our job correctly and they should bethe seller at the time of closing. 3% goes to the
allowed to pursue other options.listing agent and another 3% goes to the buyers
Working with a realtor can be a very beneficialagent (you are "offering" this percent to the agent
resource when looking for a home. While all buyersthat brings a buyer.) This is the reason why it costs
have access to a surplus of internet sites which listthe buyer nothing to use an agent. These rates are
homes on the MLS (Multiple Listing Service), a realtornot set in stone. Which is one of the reasons that
can access additional data that is not usuallyyou see flat fee brokerages.
accessible. Also, agents have the capability of