Some of my clients are asking the same questions. This leads me to think why not to make an announcement and educate the prospective buyers. I hope the following advices will also benefit you somehow, sometime or in someway.
To protect the best interest of the seller, a good listing agent will always request a pre-qualify or a pre-approval letter from the prospective buyers.
A pre-qualify letter is the bank or the mortgage broker qualify you simply based on the information your provided without any further verifications. Therefore, there are greater chances that your loan is disapproved even you have a pre-qualify letter.
Then, the pre-approval letter comes in play. The pre-approval letter needs you provide proofing documents, run your credit scores and verify all the information you provided to determine if you can be approved with the loan amount or not.
I suggest you get a pre-approval letter which normally is valid for 3 months.
To protect the best interest of the buyer, the seller must have the seller's disclosure notice for buyer's review. All the history or known problems shall be disclosed to the buyer to the best knowledge of the seller.
A good buyer’s agent shall provide you a CMA report and the tax information for your reference. However, an agent has no obligation to determine the property value for you. Why? The reason is very simple. No matter what good and honest advices the agent gave to the buyers, the buyers can always condemn and complain either the price is too low (you lose the bid) or the price is too high (you got the contract easily). A good agent will provide information for the responsible buyers to determine the prices that they would like to offer.
Also, you need to prepare for the following tasks:
1 Have a home inspector ready. After contract, a home inspection is required.
2 Have a loan officer ready. (I can also be your loan officer if you want)
3 Have a homeowner’s insurance agent ready.
4 Shop for the annual service contract. Check here or similar web sites from other providers.
Things to keep in mind:
1 Agent can help you find a house and a viable contract. Some loan officers might blow up the contract by informing you the loan is not approved unless you paid extra $$$. If you don’t, you can not close the contract and thus, the sellers have absolute right and winning chances to file lawsuit against you for compensations.
2 Shop for the annual service contract but do not buy it by yourself. You need to tell me which plan, coverage, options and their cost information to me. The title company will purchase the annual service contract for you.
That’s all up right now. You will still encounter many questions ahead, just call me and let me know. Godspeed.