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Buying a home is a monumental event that can affect you for years to come -- an agent can help you make sure it's a positive event. Among other things, a good agent will act as your home-buying expert, tour guide, negotiator, paperwork administrator, and, most importantly, your trusted advisor.
Additional Benefits of Having an Agent
* They can help you understand the different financing options available to you.
* They can likely refer you to a lender who can help pre-qualify you for a loan.
* They almost always have access to the Multiple Listing System (MLS), an electronic listing of homes for sale by other agents.
Buying A Home With No Money DownIf you are on the market for a new home, you may want to look into buying a home with no money down, otherwise known as 100% financing.
The benefit of buying a home with no money down is that you will be able to use the money you normally would use for a down payment for other things, such as closing costs, or putting it toward new furniture.
One of the requirements for buying a home with no money down is having excellent credit, or, at the very least, next to excellent credit.
Keep in mind, when borrowing up to 100% of the value of a home, the lender may charge you a bit more by bumping up ..
* They may know of homes for sale in the area that are not yet being marketed.
* They can help you stay on track throughout the buying process, with the many appointments and events the process brings.
* They will handle all the home-buying paperwork ... and there's a lot of paperwork.
* They can help you negotiate with sellers.
* They can help you determine the realistic value of homes based on recent sales in the area.
Home Buying Terminology -- What s PMI?If you re entering the home buying process, the term PMI will probably pop up on your radar. So what is PMI, and what does it have to do with your bottom line?
Private Mortgage Insurance, or PMI, is required on most mortgages with a loan-to-value ratio of 80% or more. In other words, if you put less than 20% down when buying a home, you will probably have to pay PMI.
A third-party insurer provides PMI to protect the mortgage lender. This is a critical point. Many homebuyers think PMI is designed to somehow protect them, but this is not the case. PMI protects the lender in case you default on ..
How to Find an Agent?
Seek referrals from friends who have bought homes in the area. Look on the Internet. Look in the "Homes" or "Real Estate" section of your local newspaper.
The ideal agent knows the local area well. And most importantly, he or she listens well and respects your needs and limitations. Trust your instincts. If an agent makes you uncomfortable for any reason, find another one.
* Copyright 2006, Brandon Cornett.
About the Author:
Brandon Cornett is the editor of http://HomeBuyingInstitute.com" target="_blank"> http://HomeBuyingInstitute.com, one of the Internet's largest and most respected libraries of home buying information -- more than 100 expert articles in 12 different home buying categories! Put this knowledge to use by visiting http://www.HomeBuyingInstitute.com" target="_blank"> http://www.HomeBuyingInstitute.com.
Source: http://www.isnare.com Brandon CornettHome Buying 101: Choosing A Real Estate Agent
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