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Questions about realtors and buying a house?
I found a house that I would like to buy. The couple who owns it is going through a realtor to sell it. Is it possible to work with the owners instead so that the costly closing costs won't be a problem? The house I'm wanting to buy is $40,000. (I live in rural Indiana). What would the closing costs be? If I go through the realtor to buy this house, can I get the home loan from the bank of my choice or will I need to use the realtors financing? This will be my first home purchase and I know nothing about realtors. All help is much appreciated.

Posted by ajlnkb23 on 08/28/07
Total Answers: 6

Answers-

It doesnt matter. If they using a realtor they are paying realtors fees. If you use a realtor, then the fees are split with your realtor. You, as the buyer wont end up saving a dime. Why not have your own realtor help you through it instead of doing it on your own.

Answer posted by iceman on 2007-08-28 09:21:19

1. you have to work with the seller realtor in your case. The seller has contracted with a realtor to sell his home. You have no choice. Commission is paid by the seller and not by you. 2. Closing cost is something you have to pay regardless whether you go through a realtor or not. I suggest you get your own realtor / real estate agent who will help you in your best interest. Remember, commission is paid by the seller's real estate agent. The commission is split between seller's realtor and buyer's realtor. 3. You can get your own financing through your bank or through a mortgage lender. Realtors don't finance property, they can refer you to a mortgage broker who can arrange loans for you. I suggest you should ask at least two mortgage brokers to help you find loans. Ultimately, it is your choice to pick the one you like. There is no need to pay any fees upfront to mortgage brokers with the exception of appraisal and inspection fees. Start with your bank. It is the safest place to start. Good luck

Answer posted by Matrixcm on 2007-08-28 09:33:05

Because the seller is using a Realtor you won't have to pay for it and even if you used one they would only end up splitting the commission. Closing costs can be anywhere up to 5% of the loan amount. Please be aware that some companies will offer you a no closing costs deal, this just means that they pumped up your interest rate and rolled the fees into the loan so instead of paying it up front your now paying for it for the next 30 years. You can get a loan from anywhere you chose it is your loan go with whomever makes you feel more comfortable. But be advised that the mortgage industry is in a severe meltdown and banks are closing overnight. Stick to a large well known bank but that may not be much of a help as guideline are changing faster then street lights and those who qualified this morning may not this afternoon. Good luck.

Answer posted by cristi.castillo on 2007-08-28 09:35:38

You could go through the couple to buy it, but they wouldn't be able to accept your offer until their contract with their realtor has expired. They may not want to do this because their contract may have several months left on it, and they'd be taking a chance that someone else might come along before then & make them a better offer than you who has no idea if you can even qualify for a loan. Closing costs are usually 3% - most buyers will pay this for you if you ask them to. Realtors don't offer financing - you get that from a bank or a mortgage broker, depending on your credit score. They may come down on the price a bit if you don't use a realtor, but if you just use their realtor, their costs will only be like 4% or 4.5% instead of the normal 6% - split the difference and get some help - you don't sound like you know what you're getting yourself into. It sounds like you really need to do some more research before buying a house. It's a huge thing & if you're not even at the point where you know how to get money to buy the house, you certinaly shouldn't be making any offers. The benefit to a real estate agent is that they explain these things to you. The home buying process is complicated, first time buyers probably shouldn't do it alone. Whatever you do, get a home inspection so you know they're not selling you a piece of junk.

Answer posted by I_Love_McRedneck on 2007-08-28 09:44:01

Get a Realtor. It won't cost you anything. The Seller pays out of the proceeds of the sale. Costs should be about $1,200. Use the bank of your choice. Good Luck.

Answer posted by Mortgageman on 2007-08-28 10:18:17

the Realtor has nothing to do with closing costs or where you get your funding from, the realtor gets paid a 3% comission wich is paid from the seller, the closing costs all depend on your loan officer thery make the fees now there are some fees thaey cant change like apprasial, title,doc prep, but there are fees they can lower such as loan origination,mortgage broker fee,processing fee, on a loan amount that small i would say your costs will be under 2,500 and they will most likley be rolled into the loan and not have to come out of your pocket.good luck and congrats on the new house

Answer posted by aboryszuk on 2007-08-28 12:41:05

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