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5 BIG reasons why you should get pre-qualified

Unless you’re paying cash… if you wanna’ buy a home, then you really should get pre-qualified.  (And that’s true no matter what your situation is.)  Here’s 5 BIG reasons why:

#1  If you’re going to need a mortgage to make it all happen, then getting pre-qualified will let you know how much of a mortgage you can qualify for.  And when you coombine that number with the cash you have to work with- you’ll know the upper limit of your purchasing power.

#2  Typically when a seller receives an offer, they want to see a pre-qual letter attached.  If one is nowhere to be found then they will likely hold up responding to your offer until you get that piece of business taken care of.  And if they happen to get two offers at the same time, and one has a pre-qual letter and the other does not—- just guess which one they’re most likely to accept?  (Thinkaboutit… if you were selling a house, would you want to pull it off the market for someone who hadn’t been to see their local mortgage guy yet?)

#3  Getting pre-qualified will save you time.  It may allow you to get into your new home sooner.  Or possibly even make a deal work that otherwise would not!

#4   While getting pre-qualified you may discover that you’re eligible for one or more lending programs you were not aware of.  That just might save you money, allow you to buy a bigger house, or qualify for a tax credit—- or all of the above!

#5  Btw, if you think you won’t qualify… RELAX, you just might get a pleasant surprise.  (And even if you don’t, what you & I learn will allow us to negotiate a better contract deal for you!)

And the cost to get pre-qualified?  Why, there isn’t any.  So call me— I know a guy!

 

How Paperless Banking Can Get in Your Way

My clients had finally found THE HOUSE, and we’d just finished writing up an offer to purchase.  When I explained to them how the earnest money check was to be made out, they took on that deer in headlights look and told me, “But, we don’t have checks.”  Ah, yes, paperless banking.  And since it was past 5, we spent the next fifteen minutes strategizing how they could come up with the $1000 so that could be converted into a money order.  I got to thinking about it and realized that paperless banking could really be a PITA for people wanting to buy a home.

Here’s a few situations that come quickly to mind, and why you just might want to have a checkbook available to help you accomplish your real estate and financial goals.

#1  Earnest Money Deposit–  when you write an offer to purchase, the buyer is required to tender a good faith deposit.  Yes, it’s true that you can use a money order.  However, if you’re taking out a mortgage, the mortgage company will want a copy of the front and back of the cancelled check.  If you can’t produce one then the amount of cash in the bank needing to be verified by your mortgage company will be affected- and that could leave you in a Catch 22 situation.

#2  If you’re doing contract financing, when you get ready to close, you’ll want the cash to close to come directly out of your bank account.  It will likely help you to satisfy lender requirements down the road when you get ready to refinance.  If you don’t have a bank account, it may be a real challenge to prove that those funds were “your money.”  If you have nothing but a cash card, you may not be able to create a satisfactory paper trail and your mortgage company will require you to come up with the down payment all over again.  Ouch!

#3  If you’re currently renting and are thinking about buying a house in the near future, you may want to pay with a check.  You see, when you get ready to buy, your mortgage company will be obligated to verify your rental payment history for the past twelve months.  (In fact, depending on circumstances, they may not be able to approve your loan without this crucial piece of information.)  Now, if you pay your rent to an individual, your mortgage lender will require copies of cancelled checks for the past twelve months.  (Paid receipts won’t work, and neither will money order receipts.)  If you pay a poperty manangement company, your mortgage lender will accept a form from the property management company.  That usually makes it fairly easy— that is, unless they refuse to cooperate or fill out the form in such a way that it puts you in a bad position.  In that case, you would be relieved to be able to produce cancelled checks.

#4  If you’re buying on contract and are thinking about refinancing anytime in the future, then Paragraph #3 above applies to you as well.

Paperless banking may otherwise fit your life style to a T, however you just may want to have a set of checks set aside just for your real estate and financing needs.

 

 

ing cloWhen you get ready to closee if they are to count that money in

So you wanna’ see a couple houses, do ya?

Some people see a sign in a yard and want to see that house immediately- like right now!  For others, well, they have to work up some nerve before scheduling an appointment to actually walk through a house that’s caught their eye.  Regardless of when the time is right for you, here’s a couple thoughts that will enhance your experience…

#1  Do your best to email, text or call a day or two in advance of when you might actually like to see a house or group of houses.  There’s a couple reasons for that— the sellers may need notice to crate a dog.  Or someone else may have already scheduled a showing for that time slot.  And my schedule (while flexible) does fill up.

#2  If possible, be a little bit flexible about what day or time you could schedule an appointment.  Have a couple options in mind.  (See #1)

#3  Btw, scheduling to see several properties, one right after the other, is a far more efficient use of your time.  It’s also a better way to measure one house versus another, and to gain a feel about what works for you and what doesn’t.  What’s the best number?  I think most of my clients would probably say 5 is about right.  Any more than that and they all start running together in your mind.  And if you look at 5, there will be a couple that you’ll just not like and will rule out immediately, a couple that’ll be ok but just not “IT” and hopefully one that floats your boat!

#4  When scheduling appointments, it really helps a lot if we communicate back and forth swiftly.  Otherwise, openings will close up and you’ll be back to square one.

(Now, for some reason there’s always someone who thinks I should be available 24/7 on demand for them and them alone.  Sorry, but I don’t work quite that way.)  I do my best to make things work for everyone, but my schedule does fill up.  And LOL I haven’t yet figured out how to be in two places at the same time.  On one hand I apologize for not being available.  But on the other hand, would you really want to work with someone who is available always?  I mean, what’s that tell you about their business?  One of the reasons I am busy is because I do make an effort to take care of my clients’ needs.  I do work harder to make good things happen!!  You know, I view this whole process as a partnership— and working together we’ll be successful in you obtaining the home of your dreams!