Answering A Few First-Time Homebuyer Questions
The process of buying a house can be an intimidating task for a first-time buyer. There can be a seemingly daunting amount of information to process and tasks to be done, but you may be able to reduce some of this stress by being as informed as possible before you start this process. To this end, you might benefit from having a few questions answered.
Do You Need To Have Perfect Credit To Be Approved For A Mortgage?
There is a common misconception among some people that it is only possible to be approved for a mortgage if you have perfect credit. While credit is a major factor in determining whether you will be approved, it is not the only factor that lenders will consider. They will also evaluate your income, and a sufficiently high income may offset some blemishes on your credit history.
Additionally, there are government programs designed to help individuals with credit problems purchase a house. Those that are approved by these programs can receive low-cost government-backed financing for this purchase, but the availability of these programs can vary greatly from one area to another. Luckily, your real estate agent will be able to provide you with more information about the available programs in your area.
Is It Expensive To Work With A Real Estate Agent?
Some individuals may attempt to avoid working with a real estate agent because they are concerned about it being expensive. However, these professionals can provide a range of services, such as locating suitable properties, preparing documents and negotiating with the seller. Luckily, you should be relieved to learn that the seller is typically responsible for paying the fees of the buyer's real estate agent. As a result, you can enjoy the benefits of working with these experienced professionals without having to pay out of pocket expenses for this guidance.
What Is The Purpose Of Title Insurance?
To qualify for your mortgage, you will likely need to present proof that you have title insurance to the lender. If a lien was placed on the property due to the action of a previous owner, you may be responsible for these fees. By having title insurance, you can verify that you will be the only party with a legal claim to the property. The insurer that issues the title insurance policy will thoroughly research the legal history of the property to make sure that a lien is not present. In the rare event that the insurer missed a lien, they will be responsible for satisfying the debt to release the claim to the property.