Jeff’s Carlsbad Blog for First Time Home Buyers

How to Become a Good Buyer! (Part 4 of 5)

Posted in Due Diligence,FAQs,Financial,Mortgage info by Jeff Dowler on December 12, 2006

I hope you are finding the buyer information helpful! Here are some more ways to be a better buyer:

  • Submit full loan application – While the bank will have a great deal of the information they need from the pre-approval process, you will need to submit a formal application. You may also need to provide pay stubs and other financial documentation. There is usually a date by which this must be done, specified in the contract. Doing so early in the process will avoid delays which could put your transaction, and deposit, at risk. This phase includes a bank appraisal, among other items.
  • Obtain mortgage commitment from lender – The lender will provide you with a written document stating their commitment to provide you with a loan based on certain terms and conditions (e.g., completion of a satisfactory appraisal). The letter will detail the specific interest rate and loan terms, among other information. The contract you signed will stipulate the date by which this commitment must be received (typically the end of the contingency period unless there are extensions). You may need to document your approval from the bank for the seller in accordance with the offer, or at least remove the contingency itself once approval has happened.
  • Moving preparations – Take plenty of time to plan how you are going to move (by yourself, using a moving company), and begin packing (unless you wll be paying the moving company to do that) as soon as possible; be sure to make a list of all the address changes and notify the post office, arrange for new utilities and telephone, etc. Talk to your agent for more suggestions if moving is a new experience for you.
  • Final walk through – It is prudent to tour the property before the day of the closing to make sure that the property has not changed in any way, and the seller’s personal property has been removed (there will likely be an agreed-upon period during which this should be done, i.e., 5 days before the close of escrow).
  • Close of escrow/settlement/closing – Be prepared to review and sign numerous forms and to provide various documents to the escrow company or whoever is managing the closing process (it varies from state to state). If there are additional funds you need to pay, this may need to be wired or paid via cashier’s check. Staying in touch with your agent is the best protection to make sure everything is done in the time permitted. The property transfer cannot occur until everything is received and approved. Failure to complete all the required tasks in the time permitted can put your transaction, and your deposit, at risk.

Those are my suggestions. Stay tuned for my wrap-up on this topic and some more general comments about becoming the best buyer you can be. As always, if I can help in any way, please let me know.


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