Your “To Do” for Buying a Home….

This market requires being prepared and taking quick action.

So here is a “to do” list to allow you to be ready to make an offer

in this competitive market.

Cash Buyers

Have a Proof of Funds ready

Have a copy of a bank account or investment account current and ready.

You can black out any identifying account numbers — they just need to

see the amount and your name.

When you are making a cash offer — most sellers now require a

Proof of Funds when you submit your offer.  Bank owned properties and

Short Sales demand it.

Buyers who will get a loan

Get Pre-approved… not pre qualified.  No one accepts being pre-qualified any more.  Pre-qualified is a simple phone call to a lender where very little information is given and then the lender writes a pre-qualified letter.

• Pre-approval is more involved and usually requires an appointment.In this step, the lending institution gathers all the information it requires to offer you a loan, and your credit report will be checked.  You’ll need to bring some items with you to document your identity and your assets:
  1. A copy of your most recent bank statements (this includes your daily checking account as well as any money market, savings or other accounts)
  2. Your most recent W-2 (or entire tax return if you’re self-employed)
  3. Proof of IRAs or retirement accounts and their current balances
  4. Ditto for any stocks or mutual funds you own outside of retirement accounts
  5. Your driver’s license
  6. The most recent month’s paystub(s) from your job
  7. An application fee (this depends on the lender)
  8. You are not committing to this lender — you can still use whomever you want.

And once again, have Proof of Funds ready

For those obtaining a loan — this will the same as for a cash buyer but you would just need to show where the downpayment is coming from.

Canadian Buyers

Establish a US bank account.

When your offer is accepted, it is much easier to deal in US currency.  With an accepted offer — you have 3 days to send Escrow earnest money (usually 3% of the purchase price).  It’s much easier to either write a check on US funds or wire it from a US bank.

You can obtain a loan.

There are now some lenders that will loan to Canadians with 30% down.  If this interests you — I can give you that info.

OK — there’s your homework!  If you have the necessary items ready — when we see a property you want to make an offer on — you will be able to get that offer in to the listing agent and considered in a very short time.  And in this market which is getting multiple offers on some properties — that’s the difference between being considered or being too late.

Hope this helps.  Get back to me with any questions.

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