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Q&A

It’s a busy year in real estate! While the number of potential home buyers seems to outnumber homes on the market, it is a good idea to educate yourself in some basic information pertaining to home buying and selling so that when you do find the perfect home, you will be ready to make an informed offer.

To assist you, the Katie Laws Group has assembled a few Questions and Answers. Not all answers below will fit your circumstance when buying or selling a home. It is important to remember that real estate transactions are individual situations. The Katie Laws Group will guide you through your unique circumstances.

  • What is escrow?
    During the home sales process, the buyer puts up a predetermined amount of cash (usually between 1% and 3% of the total sales price) in an escrow account after a sales offer is accepted by the homeowner. These funds are held by a bank or other financial institution in an escrow account until the sale is finalized.
  • What is the role of a title company?
    To verify that the title to the real estate is legitimately given to the home buyer. The title company ensures that the seller has the right to sell the property to a buyer.
  • What is the role of a mortgage company?
    To lend money to people who are buying real estate property. Prior to giving out a mortgage, lenders also play the role of the qualifier. This includes getting documentation of the buyer’s income, job status, and assets. Lenders must also verify that a buyer’s credit history is in good standing.
  • What are examples of standard mortgage loan types?
    • Fixed-rate: 15 and 30 years. The interest rate is set for the term of the loan.
    • Adjustable rate: The loan has an initial rate that is fixed for a specific period, then the rate adjusts periodically.
    • FHA: Loan is insured by the Federal Housing Administration and is backed by the government and designed to help borrowers of more modest means purchase a home.
    • VA mortgage: Mortgages are backed by the Department of Veterans Affairs and are available to military service members and veterans.
    • Conventional mortgages are described as loans that are not backed by the government.
    • USDA: the loan is a mortgage either made or guaranteed by the United States Department of Agriculture’s Rural Housing Service agency to help households with very low to moderate incomes purchase safe and affordable homes in rural areas. The Section 502 loan program has been operated since 1949. Today, it provides low-cost financing to buy a home through two programs:
      1. Section 502 Guaranteed Loan
      2. Section 502 Direct Loan.
      Both programs provide 100% financing to eligible borrowers.

How can you get the most value out of your home? By contacting the Katie Laws Group, our team will show you simple ways to prepare your home and property for sale so that you can get the most out of it.

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