I am looking to move into a new house, selling my current one. I would like to get pre-approved for a mortgage so that I know how much house I can afford. Do I do that first and then hire a realtor so that I can tell him/her my price range? When do I get an appraisal? Is that something the realtor does? I'm really confused on the process.
2007-01-10 05:48:53 · 7 answers · asked by zeebee 1 in Business & Finance ➔ Renting & Real Estate
1) get preapproved by a bank or mortgage broker so that you know if you can realistically shop for a home that you like. You'll be able to see what's out there just by checking online. You'll want to make sure that you can get what you think you can and still afford it.
2) Contact 2-3 realtors and ask them to perform "CMA's", which are "competitive market analysis." They will show homes that are for sale or have recently sold that compare to yours, giving you a price range. It's always good to get more than one becuase you get a feel for the professionalism of the agent- -and a second/third opinoni on the price. However dont just go with whoever says the highest-- some realtors will do this just to get a person to sign wtih them, and then force them to lower the price later.
3) The realtor will list your house, as well as tell you how much to expect after closing costs/realtor fees, etc. That way you know a range for what you have as a down payment.
4) You can shop for a house before yours sells-but you'd have to make an offer "Contingent" on yoru own home selling-- some buyers dont like this as it ties up their house while they wait.
5) your house should be schedule to clsoe BEFORE the house you are buying, in order for your loan to be funded. This means you might have to use storage for a week or so or live with friends in the interim!
2007-01-10 05:58:08 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Find out how much you can afford before finding a realtor. A realtor will tend to tell you that you can afford more than you probably can. Plus getting pre-approved for a mortgage will make you a more serious buyer to a seller. The advice I've heard is that you should spend somewhere around 30% of your income on housing, but it's not uncommon for people to spend 50% of what they make. But remember that what they might tell you can afford might only really be possible if you sacrifice in other areas. The thing you want to avoid is becoming "house poor" where you live in a nice home but don't have money for anything else.
A realtor will be able to give you an appraisal on your home, but you can get an idea yourself, by looking at housing listings online. Just search for homes with similiar features to your home in the same area and you should be able to get a ballpark figure. I live in the Midwest and time to list homes is in late February because that is when buyers start looking.
2007-01-10 06:08:08 · answer #2 · answered by recruiter74 2 · 0⤊ 0⤋
talk to a mortgage broker to get a pre-approval first. Most agents will want that before they work with you, so they are not wasting either of your time looking at homes you can not afford. An agent can set you up with a mortgage broker if you don't know any.
You can list your house and make it contigent upon finding a new home or the other way around, make an offer contingent upon selling your house. Although, that isnot the most desirable offer to a seller.
an appraisal is done after you have an accepted offer.
i think you just need to find an agent, they will be able to answre al your questions, that is their job.
2007-01-10 06:11:07 · answer #3 · answered by strtat2 5 · 0⤊ 0⤋
1/ Get pre-approved for the new house. The lender will simply factor 2 scenarios.....one without the old home (most likely scenmario) and one with both loans (worst case scenerio)
2/ Get a realtor to list your house and also help you find a new one. The double commission is great motivating factor to get both deals done...when you find a new home, you will simply make the contract subject to your selling your current home....
3/ The appraisals are ordered by the banks....leave that alone since even if you get an independent appraisal, a bank will not take it as they like to do their own....
2007-01-10 06:01:07 · answer #4 · answered by boston857 5 · 0⤊ 0⤋
It doesn't really matter which is first. I suggest getting preapproved first though. That really is the best thing because it saves any wasted time in the future.
The appraisal is ordered after you are preapproved and have a contract on a house.
Feel free to e-mail me if you have any other questions. I'm actually a loan officer in the midwest, so I can answer any questions you have.
2007-01-10 05:58:24 · answer #5 · answered by rogers_andrew 3 · 0⤊ 0⤋
Contact the realtor first. They can give you advice and recommendations for the pre-approval process (plus all the other steps and paperwork). They earn their money.
2007-01-10 05:57:28 · answer #6 · answered by Anonymous · 0⤊ 0⤋
probably not the right time to be selling your house - you may not get a good price since the housing market is on the downturn.
2007-01-10 05:56:56 · answer #7 · answered by QnA 2 · 0⤊ 1⤋