Intelligent consumers always review the qualifications of potential real estate agents before choosing which one to hire. Just as you will look at your candidates for the potential for a good fit, rest assured that the real estate agent will also be sizing you up as well. Be careful of agents who don’t ask you questions and try to understand your real motivation. You wouldn’t work with just any agent off the street, and good agents are just as selective about their clients, too.

Here are some tips for interviewing a real estate agent. Remember, don’t interview agents from the same company!

1) How Long Have You Been in the Business?

Experience matters but there are also some freshly licensed agents who are truly efficient and dedicated. A lot falls on whether have been properly mentored and if they are being carefully supervised by someone who can train them and guide them through their first few accounts. Newer agents tend to have more time to concentrate on you. And there some 20-year agents learn something new every year. Plus there’s no guarantee that “old” agents are good. Some agents with 20 years of experience repeat their first year over and over. Other

2) What is Your Average List-Price-to-Sales-Price Ratio?

Knowing the agent’s average ratio is a very good indicator of his level of skill. A very efficient listing agent should hold a track record for negotiating sales prices that are very close to list prices. Excluding the most “surefire” seller’s markets where a dog could sell a property, a good buyer’s agent should be able to negotiate a sales price that is lower than list price for buyers… Therefore, listing agents should have higher ratios closer to 100%. Buyer’s agent ratios should fall below 99%.

3) What is Your Best Marketing Plan or Strategy for My Needs?

As a buyer, ask him how he plans to look for your choice of properties. Also determine how many homes you will probably need to see before you find something you may be interested in buying. Clarify if you will be competing against other buyers as well as their procedure for multiple offers. You should also inquire about workload and how many present clients he has aside from you.

As a seller, you will need to know how he plans to sell your home. Inquire about the direct mail campaign and whether he plans to market or advertise your home, including the frequency and placement of his advertisements. Do ask for a sample flyer or ad. You should also check what his website efforts are and how he plans to market online.

4) Will You Please Provide References?

Even new agents have references from previous employers. Everyone has them and you should ask to see them! You should also check if any of those individuals providing references are related to the agent (and in what manner). Then call these references and ask for their experience with the agent.

5) What Are the Top Three Things That Separate You From Your Competition?

A good agent won’t falter while he answers this question and will be ready to tell you in many ways why he is best suited for the job. Everyone has their own standards, but most consumers say they are looking for agents who say they are honest and worthy of trust. Assertiveness is another important characteristic, as well as the skill of negotiation. Availability is crucial as well, and don’t forget good communication skills, friendliness, and the ability to think logically and analyze situations.

6) May I Review Documents Beforehand That I Will Be Asked to Sign?

A sign of a good real estate agent is a professional who gives you forms to look at before you are to give your signature. If at all possible, ask for these documents upfront.

Before you sign any loan contract, ask these top 10 questions. If you don’t like the answers you receive, continue looking around for a loan until you find a mortgage broker / lender with whom you feel absolutely comfortable with. .

1) Which Type of Loan is Best?

Reputable lenders will try to look at your background before throwing out loan options. You wouldn’t trust a doctor who prescribed surgery before conducting tests and exams about your medical situation, would you? Choose a lender who suggests a certain type of loan only after she gathers enough information from you.

Don’t be afraid to ask a lender to explain the pros and cons about Fixed-rate loans, Interest-only loans, Adjustable-rate loans and Negative-amortization loans.

2) What is the Interest Rate & Annual Percentage Rate

You can arrive at the annual percentage rate (APR) through a complex calculation that takes into account the interest rate and all the other related lender charges divided by the tern of the loan. However, always remember that:
many lenders do not compute APR correctly.

There is no way to accurately get a specific APR rate for an adjustable loan since it does not give you any accounting for early payoffs. If your interest rate is adjustable, do look at the following factors: Maximum annual adjustment, Index,
Adjustment frequency, Margin and Highest rate (Cap).

3) What are the Discount Points and Origination Fees?

Each “point” can be computed to be about 1 percent of the loan amount. Therefore, 2 points on a $100,000 loan cost $2,000. Sometimes lenders will ask you to pay origination fees in addition to points. Points “buy down” the interest rate, therefore the more points you pay, the less your interest rate will be. Points can also be subtracted from taxes.

4) What Are All the Costs?

There are some additional costs aside from the borrowed amount, and some of them are not just paid to the bank but to third-party vendors. Examples of this include credit report, Appraisal, Lender’s title policy, Escrow (where applicable).
Pest inspection reports, Recording fees and Taxes.

5) Will the Lender Guarantee the GFE?

Lenders have three days after you’ve applied for a loan to give you the Good Faith Estimate, as mandated by the Real Estate Settlement and Procedures Act (RESPA). These will enumerate all the costs of your loan. However, remember that lenders don’t have to guarantee this figure, so there is still a possibility that the price will change. If your lender refuses to remain true to his estimate, go elsewhere.

Buying a home means you will need to find financing. How hard is it to get a loan? It really will be determined by your credit history, the lenders you are able to approach, and what you want to borrow. While you need to go through the necessary paperwork and may have to talk to several lending institutions, it’s not as hard as people think.

What’s your Credit Score?

If you have a good credit score it’s really easy to look for a lender and negotiate for better interest rates too. Start with getting copies of your credit report If you have a low credit score, don’t worry. Go to a lender that specializes in poor credit history or just find ways of improving it or

Can you borrow the money you need? How much will be given?

Banks look at a lot of things before granting a loan. For example, your total income, the funds you have for a down payment, your monthly financial responsibilities such as bills and child support, and the average price of houses in the area where you want to live.

Your Lending Institutions

Loan brokers are not associated with a particular bank. They are consultants who have a network of many financial institutions and will then direct you to the best one given your situation. Loan officers are the people who work for a bank..

Another difference between a loan officer and a loan broker is that the former will show you a menu of programs while the latter will offer a menu of lenders.

Furthermore, if you are upset with the services of a particular bank, you should go to the Department of Banking. But if you are disappointed with the services of a loan broker, direct your complaint to the Department of Real Estate.

Getting Pre Approved for a Loan

It is easier securing pre approval for a loan before you start looking around for a home. This saves you a considerable amount of time. You stand a higher chance of someone accepting your offer if you have a pre approval letter attached to it. You know how much money you can borrow so you won’t waste your energies reviewing properties that are beyond your budget. Plus, some of the premium real estate companies or real estate agents won’t even entertain you unless you have a pre approval letter.

Selecting a Lender

You should choose your lender based on three things: experise, customer service, and the recommendations of other people. Make sure he is competent in the industry, and can tell you about the different kinds of loans and what to expect from the processing. See how he handles your questions. Do you feel you’re in the hands of someone who knows what he’s talking about?

Don’t choose a lender based on who can give you the cheapest rates. If a company is giving you a mortgage package that is drastically lower from the market prices, then be very careful. Unusually low rates could be hiding very high closing costs or hidden fees.