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How Much Does A Real Estate Agent Cost?

Hiring a real estate agent is at no cost to the buyer(s). The buyer’s agent commission is paid by the seller(s).

When listing a home, the commission rate is negotiable depending on the firm you decide to work with. Remember that lower is not always better and to find out how much an agent is going to invest in your home before choosing based solely on listing rate.

What Is Pre-Approval?

A pre-approval is when the a Lender screens a buyer(s) for mortgage acceptance. As a buyer, your credit, income, and work history will be reviewed to confirm you are qualified for a home loan and to determine how much you qualify for. Note that what you qualify for and how much you are comfortable spending on a mortgage payment each month, may be two different things. Your agent should consult with both you and your lender to determine the price point you as a buyer are most comfortable with. Additional underwriting is typically done after you secure a home with an accepted contract, but you may choose to be pre-approved and have the bulk of the underwriting done ahead of time.

What Does My Credit Score Have To Be To Buy A Home?

It ultimately depends on the type of loan and the lender you choose to work with. Aim to have at least a 640 score or higher, but know that in certain circumstances a manual underwrite could allow a lower score below 600. Of course the higher your score and less debt you have, the more options you as a consumer will have, as well as an overall lower interest rate. Debt to income ratio is also a major factor, which your lender can evaluate on a case by case basis.