Before You Begin Looking At Homes For Sale, You Will Need This

It's June 2013 and the real estate market today is really in the seller's corner right now. Which means, as a buyer, you need to be as prepared as you can be when you are ready to start looking. Here are a few "must haves" before you even take your first step into an open house.

1. You absolutely must have a loan officer that has given you the go-ahead along with your budget to buy a home. This loan officer should have a pre approval letter ready to email to your agent on a last minute's notice. Things are moving quickly, and so should your loan officer.

2. If you are receiving any money from a parent to help with the purchase, you must have made all transfers into your account months before you are ready to buy a place. If you haven't done that and you are getting some money toward your down payment, ask your family member to put this money directly into escrow when your offer is accepted. (and be prepared that someone may ask for a paper trail of where any gifted money came from)

3. You must give your real estate agent a copy of your "Proof Of Funds".  This is any account you have that can be easily liquidated and used for the down payment at the close of escrow.  For example, if you are putting $200,000 down on a house, we are going to need a copy of a bank statement, IRA, stock holdings or another similar form of a financial account, that shows you have that money.

4. You must be careful about transferring sizable amounts of money in and out of your account around the time you wish to buy a home. So hold off on buying those new couches, and maybe reconsider selling your car until you are a new home owner. Banks are being meticulous about finding out where your money is coming from and going to when asking for this big loan for a home.

5. And last but not least, you must start your search with some extra patience stored away in your back pocket.  It may feel a little rough for some buyers out there right now, but keep in mind, when the right house comes along, it will fall into place, as long as you just put your best foot forward and keep trying. It may take you 7 (or more) offers until the right home comes along and you find yourself in escrow.

And don't forget, call me if you have any questions about anything real estate related and when you are ready to buy or sell, I am here to help. (323) 828-7777