Buying a Home

Thinking about buying a home? Here is some food for thought. The point I am hoping to bring home is that we (all Realtors) are here to help you. Yes, we earn a living doing this, but we also invest a lot of time and effort into helping you accomplish your goal. To do this I need you to help me do this.

When I ask you if you are intending to finance or pay cash for a home, I am not trying to pry into your personal financial position. I am trying to obtain the information so that I can explain the process of what will happen once we locate your dream home. Financing or paying cash require two different approaches to starting our search. I also want to set the proper expectations for you, the buyer.

Cash purchases

Cash purchases require a Proof of Funds to present to the seller. This can be in the form of a letter from your banking institution or a copy of a resent bank statement or screenshot showing you have a balance that reflects the funds necessary to purchase a home at the price you have offered. PLEASE make sure that any personal information such as social security numbers or account numbers has been whited out.

Financed purchases

Please let me know if you have spoken with a Lender and started the process of Pre-Qualification. If you have not, we keep a list of reputable Lenders and their contact information. I will be happy to send this to you. Speak to several Lenders. Find out what types of loan products they can offer. Have them explain their rates, their closing fees, and any other fees that will be involved in the transaction.

Pre-qualification does not guarantee you will be approved for the mortgage. There are multiple steps involved with the mortgage process from application, to underwriting, to loan approval and finally Clear To Close. Be honest with the Lender from the very beginning. If there has been a past problem they need to be aware so they can let you know from the very beginning if it is something that can be overcome.

You also need to have a very real expectation of what purchase price you would qualify for. There are many lending guidelines that Lenders must follow. You don’t want to fall in love with a house only to find out it doesn’t fall into your price range.