What is the First-Time Homebuyers Program?
This is a financing program that is available to those who have never owned a home before, if they qualify. Usually there is some type of down payment/closing cost assistance and in many cases a more reasonable interest rate. Ask us for more info.

What will I need an attorney for?
Purchasers need an attorney to examine the abstract to insure that there are no liens against the property other than those that are normal. A seller needs an attorney to prepare the documents that will transfer title to the property from them to the purchaser and possibly help clear up any liens that may show up in the abstract.

How much money will I need for closing?
That depends on the purchase price, % of down payment you elect to make and closing costs, which can be different for different types of loans. Your lender or AMERIACN REALTOR will help you calculate the amount needed.

How does earnest money work?
Earnest money is binder money. It is called “consideration” and is one of the elements that make the purchase contract legal. The amount of earnest money tendered should be commensurate with the price offered.

How does using just one AMERICAN REALTOR benefit me?
If you have more than one REALTOR representing you in the market place, none of them really knows if they will be rewarded for their efforts – the incentive to do the best job really won’t be there. Also, working with just one REALTOR will give that REALTOR the opportunity to best serve the needs of you and your family – you will have all of their attention and they will get to know you better if they don’t share you with other REALTORS.

What information will I need to bring to my lender?
Your lender will want to know your financial situation – your assets, your income, your debts, your credit history, etc. Also, they will want information on your employment – how long at your present position etc. They may ask you for your most recent pay stub, and/or your latest tax return.

Do I have to stay with the first lender I went to?
You do not! You may shop lenders for the best deal. We do not recommend financing through an internet source. It has been our experience that they are usually more expensive and they are very difficult to close locally. However, the choice is yours.

Is it a better deal to work with the listing REALTOR?
Not really!

How does a back-up offer work?
A back-up offer is a second offer made which is always subject to the seller being released from the first offer. If that happens then your back-up offer becomes first. Special care must be taken with these types of offers to protect both the purchaser and seller. Your AMERICAN REALTOR will guide you through that process if the need arises.

What if I have to sell my current home first?
You will need to make your offer “subject to the sale” of your home. See below. *

When do I list my current home?
That depends on a number of factors. Sometimes it is best to list your present home as soon as you make the decision to move and sometimes not until you have found a suitable replacement home. Talk to your AMERICAN REALTOR about this situation.

*How does an offer work when it needs to be subject to the sale of my current home?
This can be a very complex situation. Special contingencies need to be written into the purchase contract to protect your interests. Usually the way it works (in a nutshell) is that during the time you have your house on the market, you allow the seller the right to continue to show their home to other prospective purchasers. If they receive another offer, they give you notice and you have a previously agreed - to time limit to remove the “subject to the sale of your house” contingency. We will guide you through this process if necessary.

What is a bridge loan?
This is the type of loan you may want to apply for if you have a house to sell and don’t want to make your offer “subject to the sale of your house”. It is temporary financing until you get your house sold.

What if I find a For Sale By Owner (FSBO)?
That’s OK. If you want you AMERICAN REALTOR to represent you, they will contact the seller on your behalf. If not, no problem!

What if I want a different agent than the one I already looked at a home with?
For whatever reason you want a different AMERICAN REALTOR to represent you, that is not a problem. Talk to your REALTOR about it, or if you are not comfortable doing that, call the office and ask for the manager. One of our objectives is that you are happy and comfortable with the REALTOR you are working with.

What if I have a problem with my AMERICAN REALTOR?
We recommend that you discuss it with your REALTOR. However, if you are not comfortable doing that, please call our office and ask for the manager. Again, one of our objectives is that your are comfortable with the AMERICAN REALTOR you are working with.

What if I want to void a contract?
This is a very complex issue. There are times when buyer or seller can void a contract. Before you consider voiding a contract you should seek the advice of your AMERICAN REALTOR. If you enter into a real estate contract, you cannot just void it at will. Again, consult your AMERICAN REALTOR – that’s what we are here for.

What if I don’t want to sell my house anymore?
If you have a legitimate reason for not wanting to sell your house anymore we will consider releasing you from your contract. Contact your AMERICAN REALTOR immediately.

What is a lock box?
A lock box is a secure device that we attach to your property into which we place the key to your house. All MLS members have electronic devices that allow them access to the lock box and thus the key to your house. It eliminates the need to pass keys from agent to agent and makes it more convenient to show your house. Also, it creates a record of all REALTORs who have accessed your property.

Should I have a home inspection?
There are various types of inspections you may want to have. We think it is wise to have inspections. However, some purchasers rely on their assessment of the condition of the property and don’t want to spend the money on an inspection. The choice is yours. Be sure to talk to your AMERICAN REALTOR about inspections. In fact, it is part of our consulting process to talk to you about inspections, so you probably won’t even have to bring the subject up.

Should I have my home inspected before I list it?
That’s a tough one. Some sellers want to have defects identified before they offer their property for sale so they can correct them and not have to worry about them. However, most sellers do not have home inspections prior to listing them.

What is a property disclosure form?
Chapter 558A of the Iowa code requires that sellers of residential properties (up to & including a 4-plex) make a written disclosure as to the condition of their property. They are required to disclose any material defects they are aware of. There can be some far-reaching consequences in regard to this law. Please rely on guidance from your AMERICAN REALTOR.