 Buyers'
Frequently Asked Questions
 Pricing
Financing
Closing Costs
Refinancing
Services
Pricing
Is
the seller's list price negotiable?
Yes.
A seller's advertised or list price should be treated as only a rough
estimate of what he or she would like to receive. Some deliberately
overprice, while others ask for close to what they hope to get; and
a few actually underprice their houses with hopes that potential buyers
will compete and overbid.
What
is the appraisal value?
The
appraised price is how much money a professional appraiser estimates
the home to be worth and usually is based on comps, or sales of comparable
homes in the same area. Purchase price and sales price are the same
thing. Both terms mean the amount of money the successful buyer actually
pays to purchase the home.
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Financing
What
should I consider before purchasing a home?
Determine
your budget even before you start to look at houses. In general, you
can afford to buy a home equal in price to three times your gross
annual income.
The
purchase price you can afford to pay for a home will depend on:
- Your
income
- The
amount of cash down payment
- Closing
costs
- Cash
reserves required by the lender
- Outstanding
debts
- Your
credit history
- The
type of mortgage you select
- Current
interest rates
 Are
there many first-time buyer programs available?
Numerous
programs exist to help first-time buyers purchase a home. A host of
private lenders offer low down payment loans.
The
U.S. Department of Housing and Urban Development offers a variety
of programs through FHA (the Federal National Mortgage Association
or "Fannie Mae") that require approximately 4% to 5% cash
down. Loan limits vary depending on the county where the property
is located.
Loans
are offered by organizations like FNMA (Fannie Mae), as well as groups
like the American Dream Coalition. Fannie Mae has a program that allows
people to buy with just a 3% down payment. Call (510) 482-8200
for details.
 How
much should I expect to pay for a down payment?
You
can pay any where from 0% to 100% of the purchase price as a down
payment on a property depending on:
- The
type of loan
- The
agreement you have with the seller
- The
amount of available money you wish to spend
Typically,
first-time homebuyer programs offer 3%, 5%, or 10% down payment for
their loans. Banks offer loans requiring as much as 20% of the purchase
price as a down payment for previous homeowners.
By
far, however, your best bet is to speak to a qualified mortgage loan
broker. A bank will only offer you the loans that it provides. But
a mortgage loan broker can:
- Offer
you choices between many different lenders.
- Explain
the "fine print"on different lender's loan packages.
- Help
you select the right loan for your budget without annoying sales
pressure.
Royal Realtors and Loan Services has a proven track record of getting
to know their clients' individual financial situations in order to
find the loans that are tailor-made for their needs. Find
out more about RRLS's loan services.
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Closing Costs
Who
pays closing costs?
The
buyer pays closing costs. Closing costs vary from one transaction
to another and often total in the thousands of dollars. They may be
paid up front or added to the buyer's loan balance. However, anxious
sellers may offer to pay some or all of the costs to induce a sale.
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Services
How
can I find a home inspector?
Contact
the American Society of Home Inspectors:
1735 N. Lynn Street, Suite 950, Arlington, Va. 22209
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