Q: What is the MLS?

A: The MLS stands for Multiple Listing Service, and is a tool used by real estate agents to manage and list up-to-date homes for sale. A variety of regional real estate associations manage each MLS database, and MLSonline.com provides home buyers with access to an aggregate of these home listings as a free consumer service. MLS systems contain detailed of fields of information about the features of a property. These fields are determined by real estate professionals who are knowledgeable and experienced in that local marketplace, whereas public real estate websites contain only a small subset of property data.

Q: How do I search for homes on MLSonline.com?

A: MLSonline.com allows home buyers to easily search MLS listings by simply entering search criteria including location, price range and home features.

Q: What kind of home listing information is available on MLSonline.com?

A: MLSonline.com provides detailed information for each home listing, including:

• Property type
• Bedrooms
• Bathrooms
• Square footage
• Lot size
• Year built
• Status
• List date
• List agent
• Home description
• Neighborhood description
• Features
• Rooms
• Appliances
• Heating
• Cooling
• Views
• Flooring

Q: Can I learn about the neighborhood and community for each listed home?

A: Yes. MLSonline.com provides detailed information about each neighborhood inlcuding:

• Population
• Median age
• Median home sales price
• Average income
• Sales tax rate
• Family size
• Number of households
• Total crime risk
• Personal crime risk
• Community characteristics
• Complexes
• Nearest airport
• Major sport teams

Q: Can I get answers to specific real estate questions?

A: Yes! MLSonline.com provides a free service for consumers that allows home buyers to ask our network of real estate experts any question pertaining to home buying and real estate

Q: How do I contact a real estate professional in reference to a home in which I'm interested?

A: Send an email to our Concierge Department at MLSonline Concierge. Please provide as much information as possible to allow our team to promptly and comprehensively respond to your request.

Q: How do I sign up for home listing alerts?

A: Register for an account on MLSonline.com and simply make sure the "Just Listed" box is checked in your profile.

Q: Can I share home listings in which I'm interested with my family and friends?

A: Definitely. After clicking on a house, look for the blue "Share" button towards the top, middle part of the page. Click and fill out the fields just like you would when sending an email. Don't forget to click the green "Send Email" button.

Q: Why should I register with MLSonline.com

A: Registration allows you to save your searches, more easily compare found homes, ask detailed questions about home properties and real estate and connect with real estate professionals.

Q: How do I register with MLSonline.com?

A: You can sign up now at no cost. Simply provide your name, phone number, ZIP code and a valid email address, and then verify your email address through a simple email response. Once verified, you may access all of the features available at MLSonline.com.

Q: Why do I need to register with MLSonline.com?

A: Registration allows our trusted real estate professionals to provide you with more information and answer questions about home listings in which you've shown interest. To help you get the information you need, MLSonline.com may contact you in reference to your home buying needs.

Q: How can I contact MLSonline.com if I need help with the service?

A: You can contact us via email at MLSonline Support

Q: Am I ready to buy a home?

A: You may be ready to buy a home if you can answer yes to the following questions:

• Do I have a steady source of income?
• Have I been employed on a regular basis for the last 2-3 years?
• Is my current income reliable?
• Do I have a good record of paying my bills?
• Do I have few outstanding long-term debts, like car payments?
• Do I have money saved for a down payment?
• Do I have the ability to pay a mortgage every month, plus additional costs?

Q: How do I start the home buying process?

A: Start by understanding your needs, what you can afford, where you'd like to live, what kind of home suits your needs. Talk to friends and colleagues about neighborhoods and communities. Make a list of what's important to your needs: size of your home and lot, features and amenities, location, schools, public transportation and cost of living. Determine your core needs versus the "nice-to-haves". Finally, research homes on services like MLSonline.com to find information about home listings, communities and neighborhoods. MLSonline.com can greatly assist in the research process, and also help you find qualified, trusted real estate professionals who can help you with your home search.

Q: What are the differences between buying a home and renting?

A: Home ownership provides many benefits, including building equity and credit, pride in ownership, tax breaks, security, stability and considerable freedom.

Renting does not provide the opportunity to build equity and affords less tax advantages. You may not have the same amount of financial security or freedom to make choices about your home, and are subject to rent increases and volatility in your living situation if your landlord decides to sell the property.

Q: How much can I afford?

A: Lenders consider your debt-to-income ratio (your gross income compared to housing and non-housing expenses) in determining your loan qualifications. The Federal Housing Authority states that your mortgage payments should be no more than 29% of your gross income. Other factors include credit history and cash available for a down payment.

Q: How do I choose a real estate agent?

A: MLSonline.com provides an exceptional resource in helping you find a qualified, trusted real estate agent that can help you with your specific home buying needs and requirements. Using the service is free and allows you to make an informed choice about this important decision.

Q: How do I research the local community?

A: MLSonline.com can help you research information about potential communities.

Q: How do I research home prices in neighborhoods?

A: MLSonline.com can help you research median sales home prices.

Q: Should I buy and older home or a new one?

A: Depending upon your specific needs, either option may be suitable. Older homes may offer established neighborhoods and have lower property tax rates. Older homes may require more upkeep and maintenance. Newer homes may use more modern architecture and systems, are usually easier to maintain, and may be more energy-efficient. People who buy new homes often don't want to worry initially about upkeep and repairs.

Q: What should I look for in a home walk-through?

A: In general:

• Is there enough room for both the now and later?
• Are there enough bedrooms and bathrooms?
• Is the house structurally sound?
• Do the mechanical systems and appliances work?
• Is the yard big enough?
• Do you like the floor plan?
• Will your furniture fit in the space?
• Is there enough storage space?
• Does anything need to repaired or replaced?
• Will the seller repair or replace the items?
• Will you be happy with it year-round?

Q: What should I ask when looking at a home?

A: A real estate agent is an invaluable resource in helping you shop for homes, and can help answer your questions about the house and neighborhood, any needed maintenance, quality of life issues and other questions specific to your needs. MLSonline.com is a great resource in helping you find the real estate agent that's right for you.

Q: How many homes should I research before making a choice?

A: On average, homebuyers see 15 houses before choosing one. Your real estate agent can you help find a selection of homes that suit your individual needs, and greatly reduce your time and effort. MLSonline.com can you find the right real estate agent to help with this process.

Q: What does a home inspector do?

A: An inspector checks (and gives prices for repairs on): the electrical system, plumbing and waste disposal, the water heater, insulation and ventilation, the HVAC system, water source and quality, the potential presence of pests, the foundation, doors, windows, ceilings, walls, floors, and roof.

Q: What's an inspection clause?

A: An inspection clause gives you the ability to renegotiate the purchase price if repairs are needed. An inspection clause can also specify that the seller must fix any problems before you purchase the house.

Q: Do I need a lawyer to purchase a home?

A: Some states require a lawyer to assist in the home buying process while other states do not, as long as a qualified real estate professional is involved. Even if your state doesn't require one, you may want to hire a lawyer to help with the complex paperwork and legal contracts. A lawyer can review contracts, make you aware of special considerations, and assist you with the closing process. Your real estate agent may be able to recommend a lawyer.

Q: Do I need homeowner's insurance?

A: Yes, homeowners insurance will be required at closing.

Q: How do I make an offer?

A: Your real estate agent will help you with this important part of the home buying process. Make sure to find a trusted, qualified real estate agent by using MLSonline.com to help find a real estate agent that best meets your needs and that will help you negotiate the best deal with the seller. Your offer should include:

• Complete legal description of the property
• Amount of earnest money
• Down payment and financing details
• Proposed move-in date
• Price you are offering
• Proposed closing date
• Length of time the offer is valid
• Details of the deal

Q: How do I decide what my initial offer should be?

A: Calculating your offer should involve several factors: what homes sell for in the area, the home's condition, how long it's been on the market, financing terms, and the seller's situation. By the time you're ready to make an offer, you should have a good idea of what the home is worth and what you can afford. And, be prepared for give-and-take negotiation, which is very common when buying a home. The buyer and seller may often go back and forth until they can agree on a price.

Q: How much should I set aside in earnest money?

A: Earnest money is a good-faith payment offered by the buyer, usually between 1-5% of the purchase price. If your offer is accepted, earnest money is applied toward the down payment. If the is rejected, your earnest money is returned, but if you back out of the deal, you forfeit the payment.

Q: What are home warranties?

A: Home warranties are optional warranties that provide coverage on your new home for repairs, service and other expenses not covered by home owner's insurance.

Q: What is a mortgage?

A: Generally speaking, a mortgage is a loan obtained to purchase real estate. The "mortgage" itself is a lien (a legal claim) on the home or property that secures the promise to pay the debt. All mortgages have two features in common: principal and interest.

Q: What is a loan to value ratio?

A: The loan to value ratio is the amount of money you borrow compared with the price or appraised value of the home you are purchasing. Each loan has a specific LTV limit. The LTV ratio reflects the amount of equity borrowers have in their homes. The higher the LTV the less cash homebuyers are required to pay out of their own funds. Higher LTV loans (80% or more) usually require mortgage insurance policy.

Q: What types of loans are available?

A: There are two general loan types available:

• 15 and 30 year Fixed Rate Mortgages: Payments remain the same for the the life of the loan.
• Adjustable Rate Mortgages (ARMS): Payments increase or decrease on a regular schedule with changes in interest rates; increases subject to limits. They include:
• Balloon Mortgage- Offers very low rates for an Initial period of time (usually 5, 7, or 10 years); when time has elapsed, the balance is clue or refinanced (though not automatically)
• Two-Step Mortgage- Interest rate adjusts only once and remains the same for the life of the loan
• ARMS linked to a specific index or margin

Q: Do ARMS make sense?

A: An ARM may make sense if your income will increase steadily over the years or if you anticipate a move in the near future and aren't concerned about potential increases in interest rates.

Q: Why should I get a 15 or 30 year loan?

A: For 30 year loans:

• In the first 23 years of the loan, more interest is paid off than principal, meaning larger tax deductions.
• As inflation and costs of living increase, mortgage payments become a smaller part of overall expenses.

For 15 year loans:

• Loan is usually made at a lower interest rate.
• Equity is built faster because early payments pay more principal.

Q: Can I pay off my loan ahead of time?

A: Yes. Ask your lender for details. Some lenders charge a prepayment penalty.

Q: Are there mortgages specifically for first-time homebuyers?

A: Yes. Lenders now offer several affordable mortgage options which can help first-time homebuyers overcome obstacles that made purchasing a home difficult in the past. Lenders may now be able to help borrowers who don't have a lot of money saved for the down payment and closing costs, have no or a poor credit history, have quite a bit of long-term debt, or have experienced income irregularities.

Q: How much of a down payment do I need?

A: Tthe larger the down payment, the less you have to borrow, and the more equity you'll have. Mortgages with less than a 20% down payment generally require a mortgage insurance policy to secure the loan. When considering the size of your down payment, consider that you'll also need money for closing costs, moving expenses, and - possibly -repairs and decorating.

Q: What is included in my mortgage payment?

A: The monthly mortgage payment mainly pays off principal and interest. But most lenders also include local real estate taxes, homeowner's insurance, and mortgage insurance (if applicable).

Q: What affects my mortgage payment?

A: The amount of the down payment, the size of the mortgage loan, the interest rate, the length of the repayment term and payment schedule will all affect the size of your mortgage payment.

Q: What should I know about the interest rate of my loan?

A: A lower interest rate allows you to borrow more money than a high rate with the some monthly payment. Interest rates can fluctuate as you shop for a loan, so ask-lenders if they offer a rate "lock-in"which guarantees a specific interest rate for a certain period of time. Remember that a lender must disclose the Annual Percentage Rate (APR) of a loan to you. The APR shows the cost of a mortgage loan by expressing it in terms of a yearly interest rate. It is generally higher than the interest rate because it also includes the cost of points, mortgage insurance, and other fees included in the loan.

Q: What are discount points?

A: Discount points allow you to lower your interest rate. They are essentially prepaid interest, With each point equaling 1% of the total loan amount. Generally, for each point paid on a 30-year mortgage, the interest rate is reduced by 1/8 (or.125) of a percentage point. When shopping for loans, ask lenders for an interest rate with 0 points and then see how much the rate decreases With each point paid. Discount points are smart if you plan to stay in a home for some time since they can lower the monthly loan payment. Points are tax deductible when you purchase a home and you may be able to negotiate for the seller to pay for some of them.

Q: Do I need an escrow account?

A: Established by your lender, an escrow account is a place to set aside a portion of your monthly mortgage payment to cover annual charges for homeowner's insurance, mortgage insurance (if applicable), and property taxes. Escrow accounts are a good idea because they assure money will always be available for these payments. If you use an escrow account to pay property tax or homeowner's insurance, make sure you are not penalized for late payments since it is the lender's responsibility to make those payments.

Q: What are the steps to securing a loan?

A: The first step in securing a loan is to complete a loan application. To do so, you'll need the following information:

• Pay stubs for the past 2-3 months
• W-2 forms for the past 2 years
• Information on long-term debts
• Recent bank statements
• tax returns for the past 2 years
• Proof of any other income
• Address and description of the property you wish to buy
• Sales contract

During the application process, the lender will order a report on your credit history and a professional appraisal of the property you want to purchase. The application process typically takes between 1-6 weeks.

Q: How do I choose a lender?

A: Choose your lender carefully. Look for financial stability and a reputation for customer satisfaction. Be sure to choose a company that gives helpful advice and that makes you feel comfortable. A lender that has the authority to approve and process your loan locally is preferable, since it will be easier for you to monitor the status of your application and ask questions. Plus, it's beneficial when the lender knows home values and conditions in the local area. Do research and ask family, friends, and your real estate agent for recommendations.

Q: What's the difference between pre-qualifying and per-approval?

A: Pre-qualification is an informal way to see how much you maybe able to borrow. You can be 'pre-qualified' over the phone with no paperwork by telling a lender your income, your long-term debts, and how large a down payment you can afford. Without any obligation, this helps you arrive at a ballpark figure of the amount you may have available to spend on a house.

Pre-approval is a lender's actual commitment to lend to you. It involves assembling the financial records mentioned in Question 47 (Without the property description and sales contract) and going through a preliminary approval process. Pre-approval gives you a definite idea of what you can afford and shows sellers that you are serious about buying.

Q: How can get my credit history?

A: here are three major credit reporting companies: Equifax, Experian, and Trans Union. Obtaining your credit report is as easy as calling and requesting one. Once you receive the report, it's important to verify its accuracy. Double check the "high credit limit,"'total loan," and 'past due" columns. It's a good idea to get copies from all three companies to assure there are no mistakes since any of the three could be providing a report to your lender. Fees, ranging from $5-$20, are usually charged to issue credit reports but some states permit citizens to acquire a free one.

Q: How do I fix mistakes in my credit report?

A: Simple mistakes are easily corrected by writing to the reporting company, pointing out the error, and providing proof of the mistake. You can also request to have your own comments added to explain problems. For example, if you made a payment late due to illness, explain that for the record. Lenders are usually understanding about legitimate problems.

Q: What are the costs associated with loan origination?

A: Yes. When you turn in your application, you'll be required to pay a loan application fee to cover the costs of underwriting the loan. This fee pays for the home appraisal, a copy of your credit report, and any additional charges that may be necessary. The application fee is generally non-refundable.

Q: What is REPSA?

A: RESPA stands for Real Estate Settlement Procedures Act. It requires lenders to disclose information to potential customers throughout the mortgage process, By doing so, it protects borrowers from abuses by lending institutions. RESPA mandates that lenders fully inform borrowers about all closing costs, lender servicing and escrow account practices, and business relationships between closing service providers and other parties to the transaction.

Q: What is a good faith estimate?

A: It's an estimate that lists all fees paid before closing, all closing costs, and any escrow costs you will encounter when purchasing a home. The lender must supply it within three days of your application so that you can make accurate judgments when shopping for a loan.

Q: What happens after I apply for a loan?

A: It usually takes a lender between 1-6 weeks to complete the evaluation of your application. Its not unusual for the lender to ask for more information once the application has been submitted. The sooner you can provide the information, the faster your application will be processed. Once all the information has been verified the lender will call you to let you know the outcome of your application. If the loan is approved, a closing date is set up and the lender will review the closing with you. And after closing, you'll be able to move into your new home.

Q: What is the final walk-through?

A: This will likely be the first opportunity to examine the house without furniture, giving you a clear view of everything. Check the walls and ceilings carefully, as well as any work the seller agreed to do in response to the inspection. Any problems discovered previously that you find uncorrected should be brought up prior to closing. It is the seller's responsibility to fix them.

Q: What are closing costs?

A: There may be closing cost customary or unique to a certain locality, but closing cost are usually made up of the following:

• Attorney's or escrow fees (Yours and your lender's if applicable)
• Property taxes (to cover tax period to date)
• Interest (paid from date of closing to 30 days before first monthly payment)
• Loan Origination fee (covers lenders administrative cost)
• Recording fees
• Survey fee
• First premium of mortgage Insurance (if applicable)
• Title Insurance (yours and lender's)
• Loan discount points
• First payment to escrow account for future real estate taxes and insurance
• Paid receipt for homeowner's insurance policy (and fire and flood insurance if applicable)
• Any documentation preparation fees

Q: What happens on closing day?

A: You'll present your paid homeowner's insurance policy or a binder and receipt showing that the premium has been paid. The closing agent will then list the money you owe the seller (remainder of down payment, prepaid taxes, etc.) and then the money the seller owes you (unpaid taxes and prepaid rent, if applicable). The seller will provide proofs of any inspection, warranties, etc. Once you're sure you understand all the documentation, you'll sign the mortgage, agreeing that if you don't make payments the lender is entitled to sell your property and apply the sale price against the amount you owe plus expenses. You'll also sign a mortgage note, promising to repay the loan. The seller will give you the title to the house in the form of a signed deed. You'll pay the lender's agent all closing costs and, in turn,he or she will provide you with a settlement statement of all the items for which you have paid. The deed and mortgage will then be recorded in the state Registry of Deeds, and you will be a homeowner.

You'll receive the following at closing:

• Settlement Statement, HUD-1 Form (itemizes services provided and the fees charged; it is filled out by the closing agent and must be given to you at or before closing)
• Truth-in-Lending Statement
• Mortgage Note
• Mortgage or Deed of Trust
• Binding Sales Contract (prepared by the seller; your lawyer should review it)
• Keys to your new home

Q: What is HUD?

A: The U.S. Department of Housing and Urban Development was established in 1965 to develop national policies and programs to address housing needs in the U.S. One of HUD's primary missions is to create a suitable living environment for all Americans by developing and improving the country's communities and enforcing fair housing laws

Q: What is FHA?

A: Now an agency within HUD, the Federal Housing Administration was established in 1934 to advance opportunities for Americans to own homes. By providing private lenders with mortgage insurance, the FHA gives them the security they need to lend to first-time buyers who might not be able to qualify for conventional loans. The FHA has helped more than 26 million Americans buy a home.

Q: What is mortgage insurance?

A: 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%.

Q: What is PMI?

A: PMI stands for Private Mortgage Insurance or Insurer. These are privately-owned companies that provide mortgage insurance. They offer both standard and special affordable programs for borrowers. These companies provide guidelines to lenders that detail the types of loans they will insure. Lenders use these guidelines to determine borrower eligibility. PMI's usually have stricter qualifying ratios and larger down payment requirements than the FHA, but their premiums are often lower and they insure loans that exceed the FHA limit.