All real estate transactions, be it buying or selling a home, involve a trade: a new home in exchange for the purchase price.
If you are a homeowner with plans of selling your home, you must first be familiar with the selling process. Note that there are processes home sellers are obligated to do while negotiating. In contrast, if you would want to be a homeowner, you would first need a real estate professional for each of your many needs. Most buyers try to look into available local market analysis before entering a negotiation, and rightly so. There is a reason why reliable Calabasas real estate attorneys are crucial, whether you are home buying and home selling. State laws must be taken into account and other factors, such as financing, can be quite difficult to handle.
Has the real estate buyer been pre-qualified (or pre-approved) by a mortgage company or lender?
Hassle-free real estate brokerage is necessary, whether you are buying or selling property. Real estate agents and real estate brokers play a vital role in the process, both when buying or when selling a house. Some people try to look for a lender before contacting a real estate agent or real estate broker (for access to the local multiple listing service). Note that meeting with lenders, before actually looking for a real estate investment, does not give an absolute and unquestionable guarantee that financing will be available.
Mortgages can be quite complex, and a loan application can be declined because of problems with appraisal, issues with the title company, home inspection, and survey findings, among other reasons. However, “pre-approved” or “pre-qualified” home buyers can get an idea of their ability to push through with financing a home, and that there is a likelihood that they could negotiate with a mortgage company and qualify for certain programs.
How does financing affect real estate buyers and sellers?
A pre-qualified homebuyer presents less risk to homeowners selling their property when compared to a purchaser whose financial strength is unknown. There is a possibility that the real estate transaction would fail if the buyer will not be able to get a loan, and the home seller could lose an otherwise good opportunity.
There is a larger pool of potential homebuyers if the interest rate is low, and this translates to more potential demand for sellers. In contrast, high interest rates could be driving away buyers in the real estate market– which is not good for anyone.
It is also useful to know that the downpayment is no longer a major financing hurdle. For a borrower with a good credit score, it is now common for just a 5% downpayment to be required. Mortgages with no downpayments (100% financing) are also now being offered by some mortgage companies. Note that minimized down payment requirements serve the best interests of both parties (the one buying and selling a home).
Why is getting legal representation and advice from a real property lawyer important?
Before selling or buying a home, it is important to seek legal advice from an expert. Remember that federal real estate law and state law are meant to protect both the home buyer and seller. A Calabasas real estate attorney can assist you in several ways, particularly with the obligations of someone buying or selling property. Diligence is key in negotiations concerning real estate property since these must be pursuant to relevant real estate laws.
Before proceeding, talk to a trusted Calabasas real estate attorney and clarify the real estate sales contract. He or she can explain what the terms dual agency, escrow, contingencies, closings, and transfer tax means.
Contact our Calabasas real estate attorney at Moschetti Law Group for assistance on home purchase paperwork and legal services from a reliable real estate lawyer.