mortgages buyer agent – Why Mortgage Preapproval Pays

The Home Buyer’s Agent of Ann Arbor helps their home buyers save thousands on their mortgages.

Why Mortgage Preapproval Pays

Are you delighted with the extension to the first time home buyers tax credit and raring to go out and find yourself a new home? Well, you’re not the only one; many people across the country are shopping for their first homes so that they can take advantage of the tax credit and get into a home of their own. While it is exciting to go out and look at available homes when you first decide that you want to buy, it is a good idea to get yourself prequalified and preapproved for a mortgage before you spend a lot of time searching the market.

If you don’t know how much money that you can get a mortgage for, it is almost pointless to look at homes; you can’t put a valid offer on a home if you don’t know if you can actually get a mortgage for that amount. If you have taken the time to get your prequalification and preapproval completed, then you know exactly what the bank will let you have and what kind of range that you can offer a seller for their home.

Don’t be confused with the jargon regarding mortgages; there is a big difference between prequalifying and preapproval. Prequalifying for a mortgage is based on estimates and is not a guarantee that you can get a mortgage for a particular amount. When you are preapproved for a mortgage, you are guaranteed that the bank will cover you for a specific amount based on documentation of your income and expenses.

Using the amount that the bank has determined that you can borrow, your buyer’s agent can help you by showing you homes within your price range; also, because you know how much money the bank will let you borrow, you can make offers on homes.

Having your mortgage preapproved really streamlines the home buying process for everyone involved. Home sellers are far more interested in offers that come from prospective buyers with preapproved mortgages because they know that that buyer is one big step closer to actually making a purchase. Buyers who don’t have a preapproved mortgage appear to most buyers to just not be very serious about purchasing a home.

So, if you are serious about your home buying endeavour, contact your bank and ask them about the process of getting a preapproved mortgage; it will show both your buyer’s agent and any home sellers out there that you are serious about buying a home and make the experienc
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e smoother for you all.

By: Ben Nicolas

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IET Real Estate represents a lot of sellers of Los Angeles short sales. Visit IETrealestate.com to read about Long Beach short sales and in other local areas.

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Most home buyers don’t know that using an agent specifically for their needs costs them nothing. They sometimes think the agent will get a commission from their mortgage payments or in the closing costs somewhere but it literally costs the buyers nothing to use the services of a buyers agent. Here are some tips why this is such a smart move.

When a homeowner lists their house or property for sale they typically either list it for sale by owner (FSBO) or through a listing agent or broker. The difference between an agent and a broker is that the broker must have more experience, education and liability than an agent. A broker must be the final authority on a listing but several agents could potentially sell the home. The broker is the name under which the listing is taken. National broker companies hire many agents to list and buy homes and properties but all the agents are doing business under the broker’s name. A specific agent could go onto to get their brokers license and still be under the National company or broker but have the ability to start their own “brokerage” if desired. An agent, which also needs a good amount of education and licensing must be under a broker of some kind.

Once a seller chooses the broker and agent (which can be one in the same) that seller negotiates with the broker on the percentage of commission the agent will receive when they sell the house. A typical percentage is 6% but this can be anything the seller and broker agree upon. The broker listing the house must now try and find a buyer for the property. The broker will market the property to the best of his/her abilities and try to bring in a buyer. If this is done through the same broker or agent that is listing the property, that agent gets the entire agreed upon commission. That agent or broker is technically considered a dual agent since they are representing the buyer and the seller throughout the transaction. Because the seller was the first of the two parties most of the confidentiality lies with this party.

If a buyer has procured their own agent, tells this agent or broker what they are looking for and that agent finds a home listed for sale meeting the search requirements, that agent is considered the buyers agent. This agent is working solely for the buyer and not any particular seller or property. They solely want what is in the best interest of the buyer and will keep unnecessary, confidential information to themselves in the negotiations of the property. Once the sale is completed that buyers agent receives a portion of the commission the seller agreed at the beginning of the listing which is typically half. The seller actually pays the buyers agent for finding them a buyer for the property. The buyer pays the agent nothing.

You can see why this makes so much sense. When the broker takes a listing the contract states how much commission goes to the buyers agent and how much to the listing agent. Again, if it’s the same agent or broker, they receive all the commission. Why wouldn’t you use a buyers agent? Without having to pay them, they work only for you with your best interest at heart.

For more information on buyers agent considering visiting my St George real estate affiliate in Utah.

Tammy Emineth writes dozens of articles for real estate, insurance, and mortgage websites a month. Visit her for Personal SEO attention.

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