The Team Lowe’s Buyer’s Guide provides expert advice and is a great resource for our buyers. We are honored to support our clients in their search for a new home by offering as many buyer’s resources and important information as possible. Whether you have bought 20 homes or it’s your first, the buyer’s guide outlines the steps involved in purchasing property, detailing how to secure a loan, for instance. However, using the guide alongside other buyers’ resources can provide more than just facts. Buyers’ resources like this guide are essential.
Buyers find the guide beneficial during their home-buying journey. It educates and informs, covering topics such as inspections, offers, loans, and closing details. These guides adapt to market changes, ensuring that you have the most current information available. This knowledge empowers them to make informed choices throughout their journey. With these various resources for buyers, such as guides and expert advice, buyers feel more confident in their decisions. Make sure to utilize all buyers’ resources during your process.
Download The Team Lowe’s Buyer’s Guide today and explore more buyers’ resources!
Questions to Ask When Choosing a Lender:
Loan terms, rates, and products can vary significantly from one company to the next. When shopping around, these are questions that can help you determine the best lender and loan product for you. Thoroughly using various buyers’ resources can assist in this process to make well-informed choices.
General questions:
- What are the most popular mortgages you offer? Why are they so popular? It’s important to check different buyers’ resources to understand what suits you best.
- Which mortgage products would you recommend for my situation?
- Are your rates, terms, fees, and closing costs negotiable?
- Do you offer discounts for inspections, home ownership classes, or automatic payment set-up?
- Will I have to buy private mortgage insurance? If so, how much will it cost, and how long will it be required?
- What escrow requirements do you have?
- What kind of bill-pay options do you offer?
Loan-specific questions:
- What’s included in my mortgage payment (homeowners insurance, property taxes, etc.)? For full clarity, use your available buyers’ resources.
- Who will service this loan? (The loan servicer is the company you pay each month, which may be different from the company that originates the loan.)
- How long can I lock in this rate? Will I be able to obtain a lower rate if market rates go down before I close?
- How long will the loan approval process take? Utilizing buyers’ resources can help clarify this.
- How long will it take to close the loan?
- Are there any charges or penalties for prepaying this loan?
- How much will I be paying over the life of this loan?
Federal law requires lenders to provide two documents to borrowers:
- Within three days of applying for a loan, you’ll get a Loan Estimate that spells out important information about the loan, including your estimated monthly payment and estimated closing costs.
- Then, at least three business days before you close on your purchase, your lender will send you a Closing Disclosure, which provides important details such as final closing costs and who gets paid at closing. These documents are also part of crucial buyers’ resources.
How to Prepare to Buy a Home
Talk to a mortgage broker or lender.
Prequalifying for a mortgage should be the first thing on your home-buying to-do list. Talk to The Team Lowe, who are REALTOR’S®, as members of the National Association of REALTORS®, for lender and mortgage broker recommendations. (Mortgage brokers don’t fund loans; instead, they offer options from several different lenders.) Shop around to find the best mortgage for your particular situation, ask questions about anything unclear, and make sure you understand the home loan process completely
2. Be ready to move.
This is especially true in markets with a low inventory of homes for sale. It’s very common for home buyers to miss out on the first home they wish to purchase because they can’t act quickly enough.
3. Find a trusted partner.
It’s absolutely vital that you find a real estate professional who understands your goals and who is ready and able to guide you through the home-buying process. The Team Lowe is ready to assist; contact them today.
4. Make a good offer.
Especially in a low-inventory market, your offer is unlikely to be the only one on the table. Do what you can to ensure your offer is appealing to a seller.
5. Factor maintenance and repair costs into your buying budget.
Even brand-new homes will require some work. Lenders and insurance companies generally suggest setting aside 1% to 4% of a home’s value for annual maintenance costs. Don’t leave yourself short and let your home deteriorate.
6. Think ahead.
It’s easy to get wrapped up in your present needs, but you should also be thinking about your long-term exit strategy. Buyers expect to stay in their homes a median of 15 years, according to the National Association of REALTORS® 2023 Profile of Home Buyers and Sellers. Younger buyers, aged 18–44, typically expect to move within 10 years.
7. Narrow down your search area.
Compile a list of three or four neighborhoods where you’d like to live, taking into account factors that matter to you, such as nearby healthcare options, schools, recreational facilities, shopping, and area expansion plans.
8. Develop a wish list.
Take your time and write down what you want, including a wide range of factors that matter to you—from noise levels to house layout to the number of bedrooms and bathrooms. Rank items or prioritize them by dividing them into two categories—wants and needs. The needs are features you won’t compromise on. (This simple worksheet can be your starting point.)
Vocabulary: Agency & Agency Relationships
State law and the agreement between you and your agent will determine what duties you’re owed as a buyer. The term “agency” is used in real estate to help determine what legal responsibilities your real estate professional owes to you and other parties in the transaction. A real estate agency is governed by state law and varies from state to state, but here are some agency terms you’re likely to hear.
The buyer’s representative (also known as a buyer’s agent)
Hired by prospective buyers and works in the buyer’s best interest throughout the transaction. The buyer can pay the agent directly through a negotiated fee, or the buyer’s rep may be paid by the seller or through a commission split paid by the listing broker. The agency agreement usually is created by a signed buyer’s rep agreement. The Team Lowe is very experienced as a Buyer’s Agent.
The seller’s representative (also known as a listing agent or seller’s agent)
A subagent
Owes the same fiduciary duties to the agent’s client as the agent does. A subagency arises when a cooperating sales associate works with the buyer but doesn’t represent the buyer. Although a subagent cannot assist a buyer in any way that would be detrimental to the seller, a buyer customer can expect to be treated honestly by the subagent who is a REALTOR®, a member of the National Association of REALTORS®. That’s because the REALTORS® Code of Ethics requires that all parties to a transaction be treated fairly and honestly. The Team Lowe often works as a subagent being a part of the largest Brokerage in Michigan. We have a large network of agents to lean on and that definitely is a buyers’ resource.
Hired by and represents the seller. The agent’s fiduciary duties are to the seller, meaning it’s the agent’s job to get the best price and terms for the seller. The agency relationship is usually created by a signed listing agreement. The Team Lowe is very experienced as sellers’ agents.