Expert: Sue Bernstein - 2/6/2008

Question
we found a house we would like to purchase. our real estate broker asked us for the good faith estimate as well as other disconcerting questions. she also didnt seem to know the difference between closing at the end of the month and the beginning of the month, as far as prepaid interest goes. is it wise, now that we found the house we want, to bid without a broker? what precautionary steps would we need to take?

Answer
Dear Brian,

You absolutely need to be represented by an agent in making the offer.  If you go in alone you will find that the listing agent will be your agent and you won't have someone who is fighting just for you. I don't understand why an agent would ask you for a good faith estimate.  That is something that your lender will provide to you.  As far as closing at the end of the month or the beginning it really doesn't make any difference in the long run.  If you close at the end of the month you will have little or no prepaid interest but your first payment will be due the following month.  If you close in the beginning of the month your prepaid interest will be high but you will have 2 months before your first payment is due.  If you are not comfortable with your existing agent be upfront with him/her and find one you feel is more knowledgeable.

Hope this helps.

Sue Bernstein