Understanding Loan Terms

Understanding Loan Terms

Here's What You Should Ask Your Real Estate Agent About Before Buying Your Next Home

by Gregory Hall

Before buying your next home, it's a good idea to schedule a consultation appointment with your real estate agent so some important questions and concerns can be addressed and you can learn what to expect throughout the purchase process. Here are a few important things you should discuss during your consultation:

Inspection Options

It is a good idea to ask your real estate agent about available inspection options before you start your search for a home to invest in. You should be sure that the home you purchase is in good condition, and that you won't end up spending hundreds, if not thousands, of dollars on repairs and upgrades in the coming years.

Having a prospective home inspected by a professional before deciding whether to actually make an offer on it should give you a good idea of what kind of shape the place is really in and offer you some peace of mind in knowing that you're making a solid investment.

Your real estate agent should be able to provide you with a variety of inspection options that you can utilize to complete your due diligence when shopping for a home. Asking about your options beforehand will allow you to create an effective inspection plan that's ready to be executed as soon as you find a home you're interested in.

Negotiation Techniques

It's also important to ask about any negotiation techniques your real estate agent may use when you decide to make an offer on a home. Not all realtors go about negotiating purchase in the same way. Some may take a relaxed approach and will simply place a counter-offer. If the seller doesn't agree to the counter-offer, they may not take any other steps to help you get the best price possible.

But some realtors will take further steps and put together reports that document exactly why you're making a counter-offer and why the seller would be wise to accept it. In other words, if your real estate agent is willing to use multiple negotiation techniques to get the deal you want they can work as a sales agent on your part just like they would for a home seller. And in the end, you can expect your bank account to benefit.

Fixed Rate Mortgage Loans

One of the most important things to ask your real estate agent about before buying a home is fixed interest mortgage loans. Without a fixed rate loan in place, you can't be sure what your monthly mortgage payments will be in the future as the interest rates on your loan would likely fluctuate over time.

But a fixed rate mortgage loan will help ensure that you will always know what your monthly payments will be throughout the lifetime of your mortgage because the interest rates will never fluctuate. Not all of the homes you consider buying may qualify for a fixed rate mortgage loan.

And you may only qualify for a fixed rate loan if the purchase price of the home you buy is under a certain amount. So talk to your real estate agent about what your options and limitations are so you can narrow your home search down to only those that will qualify for such as loan. For more information, contact a company like Pinnacle Mortgage Solutions.


About Me

Understanding Loan Terms

When I started my own company, I knew that I needed a little business capital and fast. In an effort to raise money, I worked with various lenders to discuss loans, financing, and special terms. Unfortunately, I quickly discovered that not every loan was created equally. Some loans had almost predatory terms like high interest rates and penalties, while others were completely fair. Fortunately, a business consultant of mine taught me about loans and financing, so that I could make better choices in the future. The information on this blog saved my business, and I know that it can help yours too.