FAQ: Agents, the purchase process. Southlake houses, Colleyville homes, Grapevine, Keller, HEB, Arlington, and surrounding cities. Relocation Information.

FAQ: Frequently Asked Questions
About Agents & the Purchase Process
Here are a few questions buyers often have. Think of another? Let us know & we'll get right on it!

WHAT COSTS ARE INVOLVED IN LOOKING FOR A HOME?
There is no charge for looking (at least none in my office). We get paid from the seller's proceeds when the home closes. It's one of few professions where you get paid for your work only if you get results. You don't have to be crazy, but it helps.

WHAT DO WE PAY IN THE TOTAL PROCESS, when, and to whom?
The costs you incur are as follows. These are approximate, since some vary with vendors you select and some are negotiated.

Approx Amount	Paid to	Expense	Paid when	Description
$100+/-	Seller	Option fee	Date contract written	This fee is optional, but it allows buyer the unrestricted right to terminate the contract with no cause required during the term of the option (usually about 5 days - 2 weeks). Cashed when contract is accepted by seller, but can be credited back to buyer at closing by contract.
Approx 1% of Purchase Price	Title Company	Earnest Money	Date contract written	Check will be cashed when contract accepted. This fee will be credited back to the buyer at closing. Held as a deposit against buyers costs and a surety of his intent to close the transaction. Contract calls for it to be returned to buyer if loan doesn't go, but forfeited if buyer defaults.
$80+/-	Lender	Full Credit Report	At loan application	Lender will likely have done an "in-file" report for free when they did pre-qual, but formal loan app requires the full credit report. It is not a bad idea to go ahead and do formal loan app when you go in for the pre-qualification meeting. You save time and get the ball rolling faster, so you are in better position when you find "the" house. Otherwise, you do this within a few days of writing the contract.
$325+/-	Lender	Appraisal of home	At loan application	Lender will be having an appraisal done to ensure that the home value is worth what it is being sold for. They have a stake in that number, as the risk factor of the loan is dependent on the ratio of loan to value. It's a good idea to make the contract subject to the home appraising at or above the contract price.
$300+/-	Home Inspector	Home Inspection	At time of inspection	Not required, but a good idea. There's a list of inspectors licensed by the state for this. The inspection lasts a few hours. Some will also do termite inspection. Normally done within a few days of contract acceptance, within option period. You should attend. Cost varies by inspector. Costs more if inspecting pools, bigger homes, etc....
$75+/-	Termite Inspector	Termite Inspection	At time of inspection	Often done at same time as home inspection. Lender requires a clear termite report to make the loan.
The big check... $...........	Title Company	Closing costs, Down Payment, and Pre-paid Taxes and Insurance	Day of closing	No way to put a figure on this one until you pre-qualify. Varies with price range house you buy, amount you put down, and type loan. If savings are tight, there are programs that allow "zero down", ways of rolling in closing costs, some costs may be negotiiated onto the sellers side, etc.... REMEMBER, the Earnest Money and the Option Fee get credited back to you at closing to reduce this amount. Funds to close must be cashiers check. You are borrowing hundreds of thousands of dollars... lender wants you to have a few of your own involved.

HOW LONG DOES A PURCHASE TAKE
We can generally find a house in a few days. For a seasoned agent it's just not that hard. The loan process ideally can be in progress while we look. I've had loans approved in less than a week (varies with lender... some can't return a call in less than a week). Title search starts at time of contract, and takes about a week. Expect about 2 to 4 weeks from start to move-in.

LENDER SELECTION: Does it matter?
In short, YES. Bigtime. For more on this, go to: Mortgage Info.

PRE-QUALIFICATION... What is it, why do it?
Pre-qualification is done by giving pertinent information to a lender. No charge, takes maybe an hour. They compare various programs to see which best suits you. They give you an idea what price you could qualify for, what payment that will take, what funds you need to close. They will then be ready to write a "Pre-qualification letter" for you when you find a home.

LOAN APPLICATION and APPROVAL
Approval differs from pre-qualification in that a formal application has been made, all the information you gave has been verified, and underwriters have formally approved your loan subject to finding the house. There will be costs involved in the loan application, (about $80 to the lender for a full credit report). After you put a contract on a house, you'll pay about $325 for an appraisal.

WHAT IS MLS?
Multiple Listing Service. A database of homes offered for sale by Realtors. The Realtor agrees to share their fee with other brokers to get the home sold. Any agent will be searching the same database, so you don't have to call multiple offices. You can pick an agent to represent you. Of course, I have a preference....

DO I HAVE TO WORK WITH AN AGENT FROM THE OFFICE THAT HAS THE HOUSE LISTED?
NO. Any agent can (and should) show properties listed by all local brokers. ERA can sell Century 21's product, Coldwell Banker can sell Ebby's, etc.... Doesn't change the price.

I'LL FIND MORE HOUSES IF I HAVE SEVERAL BROKERS LOOKING, RIGHT?
The opposite. The agents are all searching the same database. They have the same homes to offer. Agents are paid on commission. If you work with multiple agents, they will concentrate on other buyers who WILL buy from them. Pick one agent to give you 100% effort. You get better results.

WHAT IF MY AGENT ISN'T MUCH HELP?
Easy question. If he doesn't have the skills... FIND ONE WHO DOES! Buying a home is expensive and potentially stressful. An agent is there to make it easier. Get a good one up front... save trouble.

AREN'T ALL AGENTS ABOUT THE SAME?
Think about YOUR workplace. Does the 15 year veteran know the ropes better than the new hire? Do some folks take more advantage of technology? Past performance is the best predictor of future performance.

WE WANT TO BUILD... WHY USE AN AGENT?
You don't have to, just as no law prohibits removing your own tonsils. The Realtor isn't going to cost you. Most builder sales are made by agents, so builders have a commission in their price. If they drop the price on sales without agents, they damage their own appraisals. A good agent can help at no additional cost.

HOW DO I GET STARTED IF I WANT TO BUY A HOME?
Drop me an e-mail. Tell me what you want. I'l send you a page with the matches. Let me know when you want to look inside some. Contact a lender about pre-qualifying. You'll be living in your new home in a few weeks.

WHAT'S THE BEST THING A BUYER CAN DO TO SAVE MONEY?
Obtain Exclusive Buyer Agency.

For Info about BUYERS AGENCY and the Role of the Agent in assisting you... Click HERE.