Whether buying your first home or your fifth home, the home buying process can create many emotions and feelings. One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process.
When buying a home, one of the most important things to understand is that no question is a dumb question. If you’re unsure of something when buying a home, please contact us and we’ll be happy to help.
A real estate agent, or broker, is a person who represents buyers or sellers of real estate. While many brokers work independently, agents usually work under a licensed broker to represent their clients in Indiana. Both brokers and agents are licensed by our state to negotiate sales agreements and manage the documentation required for closing real estate transactions. Buyers and sellers are generally advised to consult a licensed real estate professional before buying or selling a home or property.
A multiple listing service (MLS) is a database established by cooperating real estate brokers, in a particular region, to provide data about properties for sale. An MLS allows brokers to see each other’s listings of properties for sale with the goal of connecting homebuyers to sellers. Under this arrangement, both the listing and selling brokers benefit by consolidating and sharing information and by sharing commissions.
A pending status on a home in Indiana indicates that the seller and their agent are confident the sale has passed its major hurdles and is on its way to closing. This also means that the provisions on a contingent property were successfully met and the sale is being processed. It’s also important to note that there are three different types of pending statuses: (1) Pending: Taking Backups, (2) Pending: Short Sale, and (3) Pending: More Than 4 Months. Taking Backups status indicates that although the real estate listing is pending, the seller is still showing the house and accepting backup offers. Short Sale means the property is going through the short sale process with the mortgage holder and it’s likely the property is further along in the process and not accepting backup offers. Last, More Than 4 Months status happens automatically in the MLS when a listing has been pending for more than 4 months. This could be an indication that something about the pending sale transaction is taking longer than it does on average. It may also be that the real estate agent forgot to change the status from Pending to Sold after closing.
A good rule of thumb is that your total mortgage should be no more than 28% of your pre-tax monthly income. You can find this by multiplying your income by 28, then dividing that by 100. So for example, if you make $6,000 per month, your monthly mortgage payments should be $1,680 or less.