How do I choose a Real Estate Agent?
Start by asking family and friends if they can recommend an agent. Look for an agent who listens and understands your needs, and who you can trust. The ideal agent knows the local area well and has resources and contacts to help you in your search. You want to choose an agent that makes you feel comfortable and can provide all the knowledge and services you need.

What is the MLS?
The MLSi stands for Multiple Listing Service. This is a system, usually run and supported by the local Real Estate Board, that has details of almost every home listed for sale with a real estate agent. Only licensed agents (who are current on their local board dues) can submit and search the MLS for homes listed for sale.

How can I build equity into my house?
When making your monthly mortgage payment, send a little bit more.  This will go directly to the principal of the loan rather than the interest.

What is the difference between being prequalified and preapproved for a loan?
Prequalified means that you potentially could get a loan for the amount stated to you, assuming that all of the information given was accurate and true.  Preapproved means that you have undergone the extensive financial background check - which includes looking at your credit history, previous tax returns and verifying your employment - and the lender is willing to give you a loan.  

Where can I find neighborhood information, such as schools, demographics, etc.?
Contact the local chamber of commerce or the city/county board. You can also check out REALTOR.com, which is a good source of information.

What is a REALTOR®?
A REALTOR® is an agent that is a member of the local or state board of REALTORS® and is associated with the National Association of REALTORS® (NAR).

What is a short sale?
A short sale is when the lender is willing to accept less than the total mount that is owed by the seller. Not all lenders will agree to a short sale, especially if it benefits them more financially to foreclose. Both the seller and lender must accept the purchase offer.

Short Sale Timeline
Day 1: Legitimate Offer
Day 2-15: Appraisal Ordered
Day 15-25: Owner Considerations (owner accepts offer and submits hardship package to bank) Day 25-30: Negotiate with Banks (both banks if second mortgage is held)
Day 30-35: Bank Approves or Declines Offer (could take longer than 35 days)
Day 35-80: Proceed with Sale until Closing

What is a Real Estate Owned (REO) or bank-owned property?
An REO property is when a property goes back to the mortgage company after an unsuccessful foreclosure auction.

What is a 203K FHA Loan?
This is a loan that enables the home buyer to finance both the purchase and rehabilitation of a home through a single mortgage. A portion of the loan is used to pay off the seller's existing mortgage and the remainder is placed in an escrow account and released as rehabilitation is completed. The home must be at least one year old. The cost of rehabilitation must be at least $5,000, but the total property value (including the cost of repairs) must fall within the FHA maximum mortgage limit.

What is Mortgage Insurance?
Mortgage insurance is a policy that protects lenders against some or most of the losses that result from defaults on home mortgages. It's required primarily for borrowers making a down payment of less than 20%.

What are closing costs?
Closing costs are expenses incurred by buyers and sellers in transferring ownership of a property.

What is the difference between an inspection and an appraisal?
A home appraiser provides a professional opinion, usually an estimate of market value, to be used in making real estate decisions. An appraiser is typically employed by the lender to estimate the value of real estate involved in a loan transaction and works in the best interest of the lender. A home inspector provides a visual examination of the physical structure and systems. Home inspectors are usually employed by and work for the best interest of the home buyer.