Buyer FAQ

WILL THE GOVERNMENT HELP YOU BUY A HOME?
The government encourages home ownership through downpayment assistance programs and FHA or VA. Also, there is a tax credit available for $8000 though 2009. The government also does so by allowing the interest and the taxes you pay on owning a home, to be tax deductible. Over the course of a year, all of the interest which is paid on the mortgage loan, which can become a substantial amount, can be a deduction. In itemizing your deductions when filing your tax return, all of this interest becomes deductible, as do your property taxes you pay on your property. By taking these deductions and legally paying less taxes, a home owner, with the help of the governments tax laws, effectively reduces their monthly payment because of owing a home.

SHOULD WE BUY A HOME NOW OR WAIT UNTIL THE INTEREST RATES GO DOWN FURTHER?
With memories of home mortgage rates of 16% and 18% in years past, current mortgage interest rates are at some of the lowest points in the last 25 or 30 years. At this time, mortgage interest rates are in the 5% range, depending on the type of loan obtained. For most “First Time Home Buyers,” the interest rates have probably never been lower in their lifetime. Even for seasoned home buyers, current interest rates are a real bargain! Waiting for a possible drop of perhaps 1/4% of mortgage rate does not justify waiting to purchase a home when the mortgage interest rate could just as easily go up 1/4% to 1/2%. If a home purchase is a consideration, taking advantage of the current interest rates would be a wise course of action.

HOW DO WE FIND A GOOD REALTOR TO HELP US?
Call The Baskin Real Estate Specialists at (918) 258-2600

DO WE REALLY NEED A REALTOR WHEN WE BUY REAL ESTATE?
The purchase of real estate is generally one of the most expensive purchases people will make in their lifetime. When buying real estate, it is not just a matter of visiting the property and saying yes, we will buy it. There are many additional factors that come into play with the purchase and this is where the expertise of a REALTOR will become a valuable asset in your real estate acquisition. Among the many considerations of the purchase will be: Is the property worth the price asked for it? What have comparable properties sold for in the recent past? If not paying cash, where do we get financing to make the purchase? What type of property inspections should we have done? Who do we call for the inspections and the lists go on and on. A good REALTOR will have the knowledge and the experience to professionally guide you through the confusing maze of a real estate purchase. And remember, most generally, the SELLER pays the real estate sales fees even when your REALTOR is working for you and representing your best interests. Yes, you most certainly need a knowledgeable, experienced REALTOR (The Baskin Team) working for you when making any type of real estate purchase.

WHY DO I NEED TITLE INSURANCE?
A title search is necessary to search out and find anything and everything about the property you are about to purchase. This will tell you if there are any other owners on the title besides the ones listed when the property is placed on the market. Are there any easements or right-of-ways which have not been disclosed? They will find out if the current owner of the property had work done on the property which was not paid for. Consequently, the contractor filed a lien on the property. The title company basically says when we have done all the searching, we guarantee the title which will be passed to you and/or your lender, will be free of defects. No one can come back on you and demand payment for something. At time of closing, you will actually get “title insurance” which guarantees this. If obtaining a loan, your lender will require you to have title insurance and if you are putting down some cash on the purchase, obtain title insurance for this part also. It is well worth the small, extra cost. But by all means, get title insurance for your protection!

DO WE NEED TO BE PRE-QUALIFIED BEFORE WE START LOOKING AT HOMES?
Yes and Yes! First of all, the Sellers listing their property for sale, want the home to only be shown to potential buyers who are qualified to buy their home. If the Sellers live in the home, placing the home on the market is a great inconvenice to them and they do not want people just going through their home that have no intention of actually making a purchase similar to their home. Looking for a home without being pre-qualified would also be very unfair to you, the Buyer! You will want to know what price of home you are qualified to purchase. It would be similar to going to the grocery store, filling your cart with groceries and then getting to the check-out stand and finding you did not have the money to buy those groceries. A good REALTOR will require you to contact a mortgage lender and have “in hand” a pre-qualification letter from a lender showing the price of home you are qualified to purchase. The most important first step in preparing to look for a home is contact “The Baskin Team,” get some names of good, “local” mortgage lenders and get pre-qualified. Then we will go out and find your new home!

DOES IT MATTER WHAT REALTOR I USE?
Your Realtor is the person you will turn to for advice throughout the process. Sometimes they are just a sounding board. Other times, you need specific direction. Whatever it is, you want your agent to be experienced so you can rely on them during times which may be stressful. You will enjoy your new home most when you enjoy the experience of your purchase. You will enjoy the experience of your purchase if you have a dependable real estate professional. Yes, it matters.

The more real estate agents you use to shop with, the better chance you’ll have of seeing all the properties on the market and getting a good deal.
With today’s computerized multiple listing service and cooperation between real estate companies, buyers don’t have to work with several agents to get to all the housing inventory. In fact, today, with buyer brokerage, agents show the best properties to their clients first. Buyers who link up with an agent and show loyalty to that agent get better service than buyers who skip from agent to agent.

Should I buy title insurance when I purchase my home.
There are two types of title insurance policies, one for the lender which financed your purchase and one for your as an owner. As your loan is paid down, your owner’s title insurance increases. I have a detailed page explaining more about title insurance in Oklahoma here: www.darrylbaskin.com/title_insurance

How many ways are there to take title to my property?
When you buy real estate you want to take title in the way that best fits the circumstances. There are many ways to do this. Here are some different ways to take title and what that means for you. * Joint Tenants with Rights of Survivorship- This is usually found in property that is owned by a husband and wife. This type of title means that if one person dies, the other one gets title to the property. * Tenants in common- Each party owns a certain percentage of the property. * Title in Trust- This title is taken through a trust, usually by families. This allows a husband and wife to transfer property to children without going through probate, which can be expensive and time consuming. * If a corporation or LLC buys a property, who actually owns the property?- Usually there is a member and a manager. The manager signs the deed and manages the LLC. The members are protected from liability but own a percentage. That can be transferred.