STEP 2 – FINDING THE RIGHT PLACE: IS IT REALLY LIKE DOING THE LAUNDRY?
August 15th, 2008 categories: Buyer Strategies, Mortgage & Finance
[NOTE: Rob Martinson continues his series on getting the home mortgage process right for home buyers in Northern Virginia. His previous installments are in our Mortgage & Finance archive.]
Now it is time for you to get some real work done on the streets. You know how much you can afford; now you need to find a home in that price range. Stick with it, sportsfans, it can be a pretty crazy ride.
Finding the perfect place usually averages out to be the longest step in the entire process. To bring it into relevance, it is very much like doing laundry. It sort of seems like a never-ending process of making offers, running numbers, waiting for decisions, and if it doesn’t work out, no matter how much work you did, you have to start all over. So, before you jump into the deep end, make sure you prepare yourself. Take a big breath, remain calm, and jump! (Or wade in if that’s more comfortable for you.)
Patience is the key. You may need to see lots of homes before you find something that works for you. Make sure your Realtor® is as patient as you are. If you are a fast-acting person, make sure your Realtor® can keep up. If you want to take your time, make sure your Realtor@ is comfortable with that too. When you find the home that suits your needs, give it an extra second before making the offer. You might have been wondering where the lender comes into this step and here goes…Ask your Realtor@ to send your lender the listing for the property along with your asking price. Your lender should then create a good faith estimate to show you what your payment will be (including your monthly taxes and an estimated insurance amount) and what your closing costs will be. Just because a house has all the stainless steel appliances you have been waiting your whole life for doesn’t mean it’s the right financial move for you. You don’t want to lose the forest through the trees, if I may be so cliché.
If the numbers work for both the bank and you, have your lender send a catered approval letter to your real estate agent and to you. Again, that letter should state that you are approved, but now it should also include the property address, the loan amount, and the exact amount you are offering. I tend to see offers are more readily accepted as presented if it looks like you are stretched to your maximum, so be sure the letter doesn’t indicate you can afford more than your offer.
Alright it’s time to choose your own adventure:
1) Your offer got accepted. Move on to step three.
2) Your offer was not accepted. Throw another load in and repeat step two.
[This post by Robert Martinson. You can contact Robert at Robert.a.martinson@bankofamerica.com]
