Pre-qualifying is just the first step. It gives you an idea of how much of a loan you'll likely qualify for. Pre-approval is the second step, a conditional commitment to actually grant you the mortgage.

Pre-approval is the stronger position, as it signals to a seller that the lender has reviewed your income, assets and debt in writing and that they are approving you as a borrower.

In this competitive market, it is more important than ever to have a Pre-Approval!  Need a referral for a lender? Contact us and we can provide you a list of our preferred partners.

The MLS uses several different lables to indicate the status of a property.

ACTIVE means the property is available and the seller is ready for an offer.

ACTIVE OPTION means that there is a contract on the property and that there is an option period. This is the window of time (generally 7 - 10 days) that a buyer can termiante for any reason without penalty.   It is during the option period a buyer will complete inspections and negotiate repairs if needed.

PENDING means that there is a contract property and there are no more contract tingencies.  The lender is now in the process of preparing the loan file for closing.

Zillow and Trulia are great sources of free information! However, they use very braod Automated Valuation Models, or AVMs.  This means it is important to consult with an experienced Realtor who understands the nuances of a neighborhood and has access to the most recent and acurate home value information.

Earnest Money is considered the binding effect of the real estate contract.  When you make an offer on a home, your Realtor will ask you to submit a check for the Earnest Money (usually between 1% - 2% of the contract price).  It is a good faith gesture that shows to the seller the buyer is committed. 

It is generally deposited into an Escrow Account at a title company.  When the deal goes to closing, it is applied to the buyer's down payment and closing costs.

IMPORTANT:  The Earnest Money is refundable to the buyer if the contract terminates during the option period, or another contract contingency.  However, it can be retained by the seller if a buyer fails to go to closing.  Ask your agent how to best protect your Earnest Money. 

As a buyer, YES! you should always get a home inspection.  We hire an experienced home inspector give a full report on the condition of the home, including the Structure (foundation and roof), Mechanical (HVAC systems), Electrical and Plumbing systems! An experienced agent will help you navigate the inspection report and negotiate the necessary repairs. 

As a seller, it is often a good idea to have your home pre-inspected.  It allows you to make minor repairs before listing the property, so that when you have the property under contract, it is smooth sailing.  Should an inspection uncover a larger issue, it allows you to obtain estimates and make repairs or know the value of a repair.  Having knowledge and firm numbers puts you in a stronger negotiating position.