What does a Realtor® do?
A Realtor® earned the right to use the term by successfully completing the Real Estate Licensing Program.
Realtor® is a registered designation that gives an individual the right to license with a brokerage and engage in trading in real estate. Realtors® follow a strict code of ethics and standards of professional conduct. Realtors® are required to complete educational programs on a regular basis and industry standards have been made more stringent in recent years. Real estate trading may include working with buyers to find the right home or working with sellers and listing their home for sale.
Why should I use a real estate agent?
A real estate agent acts on your behalf as your agent, providing you with information, advice and guidance while buying or selling a home. Only a real estate agent has the most up to date information about the market. When buying a home, choosing one real estate agent to work with you will ensure that you have a complete overview of the market and all homes available to you. When selling, choosing a Realtor® to represent you in the sale of your home will help to ensure you fully understand the current market and the best price to ask for your home as well as exposing your home to as many potential buyers as possible. Full exposure to the market by a professional real estate agent, usually results in more money for the seller. A real estate agent can also help to provide you with information about other professionals that will be needed during a real estate transaction, professionals such as; Home Inspectors, Mortgage Lenders, Lawyers, Appraisers and so on.
There are different types of agency relationships (see Agency Disclosure form on home page). It used to be common for all parties involved in a real estate transaction to work for the seller, hence the term "Seller's Agent" however in recent years you may have noticed the term "Buyer's Agent" appearing in real estate advertising. A buyer's agent represents the buyer in any real estate transactions and keeps the buyer's best interests in mind, advising about terms and prices to offer as well as negotiating on the buyer's behalf. Clearly determining the seller's agent and buyer's agent before entering into a real estate transaction helps to ensure that all parties are having their interests looked after appropriately.
What is the difference between being pre-qualified and pre-approved for a mortgage?
If you are pre-qualified, a lender has determined your POTENTIAL borrowing power, assuming that all the information you supllied was accurate and that you did not forget anything material to your situation. If you are pre-approved, it means that you have undergone an extensive financial background check with your lender who has verified your data and is prepared to loan you a specific sum of money provided the home you choose meets with their approval. The bank still excersise its right to approve the particular home you choose and the price you pay which may involve an appraisal.
How much money can I borrow to buy a home?
Most lenders use debt-to income ratios that involve a smaller percentage (around 28%) for your home costs but a maximum debt-to-income ration that is usually around 36%. In other words , a large car loan and credit card balance may affect your ability to buy a home. It is always a good idea to visit your bank to discuss your financial picture and get a clear idea of how much you could borrow given current interest rates.
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