Landmark Group - Buyer FAQ

How much do I offer?

We can give you a comparative market analysis on homes in the area to give you an idea of what things are worth, so you can make an educated offer. Our job is to get you the best deal possible on that home.

How much is reasonable for an earnest deposit?

Typically, 1% of the purchase price is reasonable for an earnest deposit. It’s important to let the sellers know that you are serious about purchasing their home.

What if we have to sell our house before moving into a new one?

This is a very common issue. What do you do first? We can help you list your home, and get it sold as quickly as possible, for the best price. You have several options at that point. You can wait until your home is sold, and make alternative living arrangements in the meantime while you look for a new home. You can look into a bridge loan if you have a mortgage and make your offer contingent on your current home selling, bearing in mind that some sellers will not entertain an offer that is contingent upon a home sale. Discussing your options with your lender is always wise.

What do we do about a home inspection?

Finding a good home inspector is one of the most important steps of purchasing a home. We use home inspectors that pay attention to detail, finding and reporting all the issues. The last thing you want is to move into your dream home, and have it start (or continue) to fall apart. With all the facts in hand, we then negotiate with the seller, for concessions and/or repairs to major defects.

How do I get out of the deal if there are problems? What are my options?

It is very important to understand the consequences of signing a purchase agreement. Minimally, if you decide to opt out of the purchase agreement, you can potentially lose your earnest deposit. Maximally, depending upon the circumstances, there can be legal ramifications.

What kind of closing costs can I expect?

Closing costs will vary from lender to lender and may change based on loan program and lock in term. The main closing costs consist of the costs for the appraisal, processing, underwriting, credit report, tax service, flood search, title insurance, loan closing, real estate closing, recording fees, plot plan, and termite inspection. There may be additional costs to originate the loan or buy down the rate as well. Some lenders may pay for or omit some or all of these fees depending on the type and structure of the mortgage. Most of the closing costs are paid to a third party for the service they provide during the transaction.

What is a good faith estimate, and should I receive one from my lender?

The good faith estimate is the lenders breakdown of the costs associated with the mortgage. It gives you an itemized detail specific to your transaction. RESPA (the Real Estate Settlement Procedures Act) requires lenders to provide borrowers a good faith estimate within 3 business days of application. It does not require lenders to provide estimates to those who do not apply. Some lenders will give you one upon request, but keep in mind a good estimate is only possible after you go through the application process and the lender knows what type of credit and loan programs that you qualify for.

What is PMI?

PMI stands for Private Mortgage Insurance. It is insurance against a loss by a lender in the event of default by a borrower. The insurance is similar to insurance by a governmental agency such as FHA or VA, except that it is issued by a private insurance company. The premium is paid by the borrower and is included in the mortgage payment.

What do the different types of mortgages mean, and which is best for me?

The answer to this question is as unique as the individual. A good lender will ask questions early in the application process and present you with options that may fit your needs. If the lowest payments is what you’re looking for, and interest only arm may be the best option. If you want to build equity as quickly as possible, a 10, 15 or 20 year term might help you out. If you are someone who moves or relocates every 2 years, a 3 year ARM might be the best product. Most people don’t realize a 30 year fixed rate mortgage is one of the most expensive products on the market. You may be throwing away $1000’s on the wrong mortgage.

What is an ARM?

An ARM is an Adjustable Rate Mortgage. An adjustable rate mortgage is one in which the interest rate changes periodically, according to corresponding fluctuations in an index. All ARMs are tied to indexes.

How long will it take to close on the house, and what are my options?

The length of time it takes to close on a property is subject to many factors. Initially, you choose an appropriate date upon which you would like to close and/or take possession. It is standard to allow 30-45 days to process and underwrite the loan. Certain loan programs can close more quickly. Your lender will be able to give you more details.

Who signs what paperwork?

As a buyer, the standard forms you will be initially signing are a purchase contract, any applicable addenda, an agency disclosure, seller property disclosure, lead-based paint addendum, and an estimated cost sheet. The seller will sign off on the acceptance part of the purchase contract, and/or make any additional requests. You then sign off on the final changes, and if the price of the house has changed, you will sign an updated estimated cost sheet. The rest is at the closing table.

What property stays with the house?

The personal property that stays with the house is usually shown on the Multiple Listing Service (MLS). This typically means appliances, garage door openers, window coverings, ceiling fans, etc. If there are any discrepancies or additional pieces of property that are available, it can usually be worked out within the purchase agreement.

What is an SID?

An SID is a Sanitation Improvement District.

What exactly is radon, and how much is dangerous?

Radon is a colorless, odorless, tasteless radioactive gas that s formed during the natural breakdown of uranium in soil, rock, and water. It exits the ground and can seep into your home through cracks and holes in the foundation. It can also enter your home in well water. Acceptable levels do not exceed 4 picocuries of radon per liter (pCi/L). It is very easy to have your home inspector conduct a radon test at the time of the inspection.

What if I am moving from out of town?

We love to be of assistance to those moving in from other places. We can pick you up from the airport and show you all that Omaha has to offer. Much of the initial work can be done online, prior to your visit, and upon arrival, we can get started showing you homes that meet your criteria. We make things as simple as possible, from finding your perfect home, to closing and moving in.

How do I get started?

Give us a call or email us…no obligation. We are happy to answer any questions, and look forward to hearing from you!
Phone: (402) 553-8111
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