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Frequently Asked Questions From Buyers

  • Should I get pre-approved with a lender? Yes…it is a great idea to get pre-approved and even have a mortgage commitment letter from a lender. The lender can verify the mortgage standards and qualification guidelines with you and review the amount of monies you will need or be required to bring to closing. The lender can also talk with you about the different types of financing available.
  • What do I do, once I get pre-approved? At this point it is a great idea to put together a list of wants and needs for the home you are looking, including area of town, age, etc…then contact our office, so we can perform a search in the price range you are approved or desire to give you an idea of what’s available.
  • What do we do if we find a home we want to preview? Call our office and we will schedule a time to preview the home with you. It is important you call our office first to schedule the appt. and visit the home with us.
  • We don’t want to waste your time? Don’t feel that you are going to waste our time…previewing properties with you gives us the opportunity to understand your likes and dislikes of the home, neighborhoods, etc…
  • What do we do once we find the home we really like? We will pull comparable sales from the neighborhood for the past 6 months and review with you. We will also pull the tax records for your review. Once we review this information, we can put an educated offer together and present to the other agent.
  • Does making the offer secure the home for me? NO. Until an offer is signed and executed by all parties, meaning both the Buyers and Sellers, the Sellers can look and accept other offers, even if the Sellers have made a counteroffer back to you, assuming they had withdrawn their counteroffer to the buyer.
  • What happens once we get an accepted offer on a home? This is the time we need to look at all time frames in the contract. We will send a copy of the executed contract to your lender. We will then help you schedule inspections, surveys, etc…It is important to remember that the inspection time frame has a TIME IS OF THE ESSENCE clause and the dates MUST be met.
  • What happens during the inspection and do I need to be there? You don’t have to be at the inspections, but we think it is a good idea if you can be there to review any potential issues with the home inspector. The inspections normally last approximately 3-4 hours and if you are short on time, it is most important you are there toward the end. This is also a good time to schedule any contractors to stop by and give you estimates if you plan to make any improvements to the house.
  • What happens if the home inspector finds a problem with the house? Initially, don’t worry…there are no perfect houses. We can help you coordinate a contractor or engineer to review. With the standard GLAR contracts, after the home inspection and during the inspection time frame, you are given 3 options: the ability to terminate the contract, the ability to request repairs or the ability to take the home “as is” with no repair request. If this is a bank owned home, short sale or relocation, there may be addendums that will change the above scenario, so you will want to pay specific attention to the addendums and changes.
  • When is the appraisal completed? Unless this is a cash closing, the lender normally orders the appraisal within 2-3 weeks after the acceptance of the contract. If you are requesting a quick closing, it is a great idea to ask the lender to order the appraisal first thing so it does not slow down the process.
  • What happens if the home does not appraise? You have the right to either re-negotiate with the Seller on price or terminate the contract.
  • When will closing take place? The closing time frame is negotiated in the contract and is subject to your lender and their closing attorney to be able to close us in the time requested. It is a good idea to review with your lender the closing time when you make your application.
  • When do I get possession? Normally we try to negotiate possession for date of closing, but sometimes the Sellers may request or require a few days to stay in the home after closing. This is a term negotiated in the contract upfront.
  • What happens to my good faith deposit if the contract falls through? Good faith deposits are deposited into the Realty company’s escrow account within 3 days of the contract acceptance. In order to release the good faith deposit, the Realty Company holding the deposit will require a signed release by the Buyers, Sellers, Realtors and Realtor Companies before the good faith monies can be released. This release will direct who gets the good faith deposit. Also, if not all parties will sign the release there are other options.
  • Do I need to perform a walk though on the property prior to closing? Yes. It is important to perform a walk through prior to closing. We normally do this once the home has been vacated, assuming the Sellers are giving you date of deed possession. Even if the Sellers are keeping possession for a few days, it is still a good idea to walk through the home to make sure it is in similar condition as of date of contract. If the house is not vacated prior to closing and possession is being given sometime after closing, it is a good idea to coordinate a walk through of the property to verify condition, once the Seller has vacated the property.
  • Should I get title insurance? YES. You should get owners title insurance. If you are getting a mortgage, the lender will require Lender’s coverage. Owner’s title insurance protects “your” equity interest in the home.
  • How long does the actual closing take? Most closings normally take about 45 minutes to an hour. If you would like to read each document in full, it is a good idea we schedule more time with the attorney prior to closing. The closing agent will typically need to know this several days in advance.
  • What do I do about utilities? Our office will send you a list of utility companies, including gas and electric, cable, dish, phone, etc…It’s a good idea to call to transfer into your name once we know the exact closing date.
  • What do I do once I close on the home? CONGRATULATIONS! This is a great time to walk back through the home at your own leisure and prior to the movers showing up to review location for furniture, etc….

Congratulations and Thank you for placing your trust with the Mike Farrar Team to help you locate and find your new home!!

It’s important to us, if you would please recommend our team to your friends, family and work associates. There is no home too large or too small for us to give it our 110%!!

Mike Farrar Team

The information contained in this site is for general guidance on matters of interest only. As such, it should not be used as a substitute for consultation with legal professionals or other competent advisers.

Licensed REALTORS in Kentucky
Each office Independently Owned and Operated. RE/MAX Holdings, Inc. is an Equal Opportunity Employer and supports the Fair Housing Act.

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