Deb Espinoza's Real Estate BLOG

At this point I am hoping and praying for "third time's a charm". First time homebuyers are again in a multi-offer situation (15 of 'em to be exact) The home is not new (some 50+ years old and still the original baths and kitchen), needs work to make FHA financing ready, and not in the best of locations (busy streets surround on two sides) . I keep wondering WHAT on earth is going on ??? Our offer on all the properties we've bid on has been well over the list price; this particular one is about $25K over; severly biting into the repair and upgrade fund.

So, buyers BEWARE- You absolutely MUST have everything lined up before you go looking because you have to be ready to pull the trigger and make your best offer if you see something you really like. Your cash for down payment and closing costs must be in your account and seasoned there for at least 2 months, you must have a QUALITY, up to date DIRECT LENDER approva--l-translated into lay-mans terms; A lender who underwrites and funds their own loans,( not a mortgage broker who farms out a loan package in "hopes" that the lender they send it to will fund it), AND you must give the lender your bank statements and paystubs and tax returns so they can verify everything. It's not just what you make, but what you have going out in bill payments every month, what you have liquid in bank accounts and what you have on your tax returns. A lender will be able to look at your tax return and see if that write off of rental property or your 'hobby' business has just killed your chances of qualifying AND be able to instruct you on what to do next filing to get you approved. Anyone can give out a letter of approval; not everyone does a quality job. The last thing your agent wants to do is watch you lose out on your house because you didn't take the time to get your lender ALL the paperwork they needed to do a proper approval. Once you get your approval you also want to know your comfort level with payment and 'additional down payment' funds. If you really do like a house and you are asked for 'highest and best' how high can you comfortably go along with being qualified for? Can you bring $5K more cash to the closing or squeeze out the extra $30 a month.. Know these things before you are in the situation and you will be ready to make the right moves and get your dream home!