Frequently Asked Questions

What are closing costs?

For buyers, closing costs are the costs incurred when purchasing a property. Normal closing prices in our area consist of: a loan charge, an appraisal, pre-paid taxes, pre-paid insurance, 1/2 of the escrow charge, some title coverage fees if a loan is involved and recording fees. For buyers, closing costs and prepaid fees average 2 to 4%.

When you sell real estate, you’ll have a real estate charge (listing fee) and title fees. On average you would possibly count on to pay about 6% to sell your home.

What is a Broker?

A broker is an man or woman who’s certified to represent clients during the buying and selling of real estate. Real estate principal agents have a separate a certification which permits them to manage different brokers and/or run their own company.

What is a Realtor?

A Realtor is a member of the National Association of Realtors and normally a certified broker or agent who’s licensed to conduct real estate business on behalf of their clients. They are held to a certain standard of ethics and higher education to keep their membership within the national association of Realtors and their state licenses.

What is a contingency?

A contingency is a situation that must be addressed earlier than closing on a real estate transaction. standard contingencies consist of financing contingencies and inspection contingencies. as an example, a buyer normally has approximately 10 business days to do his or her inspections. If the property has defects, the buyer can request maintenance. If the seller refuses, the buyer can back out of the transaction. Another contingency would be the financing contingency, which commonly spans whole length of the real estate agreement. In the event that they buyer cannot get a loan, the person won’t have the ability to buy the house. This is why it is very essential to get a pre-approval letter from a reputable mortgage broker or banker.

Another type of contingency less common is a contingency to sell your home earlier than closing on the new home. The seller might need the proceeds from the sale…this then would have to be noted to the vendor as a contingency.

What is Debt to Income Ratio?

The debt to income ratio is a metric that is used by lenders to decide if you can manage your debt bills. Creditors pay very close attention to debt to income ratios and banks like it if you have a low one. A low debt to income may be the deciding factor for a loan to buy a home and perhaps even a desired interest rate.

What is the difference between pre-qualified and pre-approved?

A pre-qualification is a verbal guesstimate as to what you can afford when shopping a brand new home. A mortgage broker will ask you your monthly income and costs and come up with a general idea of if you have enough money without doing a hard check.

A pre-approval is a hard amount as to what you may afford after vital financial information is reviewed. Bank statements, tax returns and credit report will be examined. A pre-approval letter is vital when presenting an offer on a home.

What is Title Insurance?

Title insurance protects the lender and the buyer from any disputes which can rise up over the title of the purchased property. It is a coverage that kicks in if someone comes to you after the sale as says that you owe them money due to the fact you’re the owner of the property.

Why should I work with a Realtor?

A realtor can pull comps, show properties, and guide you through the buying process while offering the experience necessary to get the deal completed. As a seller, you might be leaving loads of cash on the table if you do not hire an expert realtor to assist you. Realtors normally list homes within the RMLS and they spend a tremendous deal of money and time advertising homes. This can make a huge difference in the sale price. General speaking, realtors with experience in up or down markets have the capacity to provide advice and guidance all through the buying and selling procedure.

Roxo Realty, LLC

100 Willow St. #10
Manchester, NH 03103
Office: 603-645-4324