Peggy and Kirk's Advice
Things you should not do if you are buying a home!
- Don't quit your job
- Don't change your job
- Don't get a promotion
- Don't buy any large ticket items (like five dollars or more!)
- Don't Make David Copperfield deposits (all funds need to be traceable)
- Don't talk to Sellers directly (loose lips sink ships)
- Not telling the person who is giving you the gift that you will probably need a gift letter and some proof (usually a bank statement) that they had the money to give
- Not telling me if you are allergic to animals
- Getting advice from a buying committee that has not purchased in the last year (the rules change almost daily)
- Waiting to see everything else that is on the market
- Don't trash the property in front of the owners (This will not make it cheaper but probably more expensive)
- Calling the other agent on "For Sale" signs (Just call us and we will get all your questions answered)
- Attending open houses and new construction without me
- Not telling me if you have a house to sell
- Delaying paperwork because you are irritated by the frequency and number of request from the Mortgage Company
- Finding a lender on the internet that offers a 0.001 interest rate
- Not realizing it is possible to find what you are looking for the very first day you go out (this happens more than you think...)
- Going home to sleep on it (in a hot market, if you sleep on it, you might not get to sleep in it)
- Waiting to find the absolute PERFECT house. You will always be limited by income, zoning, inventory at the time, and/or legislation and or property taxes.
- 80/10/10 Rule If you find a house that has 80% of what you are looking for, 10% of things you can change and 10% of things you can live with, it's a keeper.
- Do not co-sign for even a candy bar!
- Don't schedule a vacation before we close (especially a cruise)
- Don't order Direct TV, Cable, Telephone or any utility that will pull a credit report unless you want to write a letter of explanation about the credit report to the mortgage company
- Don't change your name during the mortgage process
- Not being up front with your loan officer (hiding information)
- Not realizing the clock starts ticking from the time the loan officer get the contract, not the date it was written)
- Unreasonable expectations
- Giving away your negotiation power by speaking in the house (always assume you are being recorded)
- Posting your real estate thoughts on social media sites (If you are savvy, this can easily be viewed)
- Not being FULLY approved BEFORE you go looking (nothing hurts as much as finding the house you love and you loose it when someone else beats you to it because you were not completely ready)
- Believing what you see on HGTV and reality television (the majority of that stuff is scripted, we know we have had homes on the shows!)
- Not shopping the good faith estimate
- Not telling me what is MOST important to you
- Not using name on drivers license for mortgage docs (use Jr. and Sr. if required)
- Not using a local lender(it really makes a big deal if you want to close on time or close at all!)
- Not telling your lender if you lose your job before you close
- Do not go window shopping and let people pull your credit
- If it can't be written on the front page of the contract because its being done "under the table", it is probably mortgage fraud
- Do not look at a short-sale if you need to move immediately
- Do not consider a short-sale if you need to be in control of the process
- Dying before the transaction closes (this really messes things up, BIG TIME! Please don't die before the closing...)
Frequently Asked Questions
- How long does the buying process take? It's a variable on the loan process but usually around 30-45 days.
- How many properties does the typical buyer look at? 1-600
- When should I make an offer? If only we knew that answer!
- How much should I offer? We use comps in the area to help support any offer!
- Should I lock in my interest rate or should I float? Question for you and your magic eight ball!
- When will I get the keys? Typically the day of closing.
- What happens at the closing? You will need proof of identity and wired funds. Seller and Buyer may be in same room or may not even be in the same state. (you can chose)
- Is the closing date on my contract guaranteed? No nothing is!
- How much earnest money should I put down? Variable, usually around $5,000.00
- What happens to my earnest money? It will sit in escrow and when you close it will be used as part of your cash.
- Will I get my earnest money back if the contract is not accepted? Yes!
- What is the process to get my earnest money back if the contract is accepted and the home inspection finds an issue? We can cancel the contract within the deadlines and your earnest money will be returned.
- How often do you find the perfect property on the first day? (80- 10-10 rule) A lot!
- Is there anything I should not do during the house hunting process? See things not to do list!
- What is the likelihood of a multiple offer situation? It happens so be prepared.
- What monies will I need to come in with? You'll get a sample settlement statement a few days before closing. Don't bring cash, wires only.
- How long does the home inspection take? 3-4 hours
- Do I really need a home inspector? Yes or you will need to give us a letter that you do not want a home inspection. Best way to protect you is a home inspection.
- Can you recommend an attorney, home inspector or a lender? Yes
This will most Likely Happen...Buyers
- You will not be told how much money to bring to closing until the day of your closing and most likely only hours or minutes before the closing
- The dates on your contract will change multiple times.
- You will become anxious and nervous
- You will become irritated or annoyed about frequent and last minute paperwork requests with seemingly impossible deadlines from the lender
- The Mortgage company will most likely pull another credit report on you days before or even the day of closing
This will most Likely Happen...Sellers
- The Buyer will negotiate 2-5 times on this transaction. They will negotiate the purchase price, inspection, maybe appraisal(not likely)
- When under contract the dates are just a guestimate and will change, you must be willing to work with Buyer due to lending timelines.
- Agents will miss showing appointments plus not call!
- Showing appointments will be made and cancelled at the last minute.
- Some showings will last about 5 minutes and some 3 hours
- There will be a day we call you about a showing and you are going to ask what time, we respond look in your driveway.
- I am going to call you 3 minutes before a showing to cancel sometimes 20 minutes after. Out of our control with Buyers
- Agents and the public are going to knock on your door to see your home, If this happens call us!
- Expect lowball offers it happens every time at the start of the listing, we are here to help you
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