Here are some tips that will turn those tides and make you a winner with your first offer.
First, aligning your sights. You need to ensure you are working with someone who knows the local market and who has your best interests in mind. You will know this by listening to what they are saying and more importantly, paying attention that the Santa Clarita agent is listening to you and your concerns.
Local Lenders – in a perfect world you should be able to use any lender you desire to obtain a home mortgage from. You know what? This happens to be a perfect world. However, this article is meant to show you best advantages and Top Tips for a first home buyer. If a lender is local, they have dealt with local agents and will have a good reputation. You will find those who don’t have a good reputation also. Your real estate agent will guide you through this process. You will quickly learn that the large corporate lending houses that advertise on TV with some of the best-advertised rates, overpromise and underperform. They can delay closing and create penalties for a home buyer. You will also discover that some banks and credit unions are not as nimble as a mortgage broker who can pull on over 200 sources of money. Banks and credit unions are mostly left with the money in their own coffers, which could delay closing with additional items needed to close.
Agent Reputation – I don’t want to work with deceitful agents. This is because their clients typically find them out. When this happens escrows cancel. As they should, but there would have been no escrow in the first place if the agent had been upfront with the buyer/seller. Do some googling. Look for the trusted agent. Look for one who is doing more than just going through the motions. For example, are they writing content? Do they have a radio show? Are they within the local networking groups? Are they seemingly client-centered? What happens when you google their name, are they all over the place with good intel and positive results?
Document preparation – have everything together when you are ready to have that first offer written for you. Scrambling at the last second will give you an ulcer.
- You will need a pre-approval letter to match your offering amount. This can be an issue if you are using a nonlocal 9-5 real estate lender or one who only works during those hours and is not available after hours, during weekends and on holidays.
- Proof of Funds – If you are going to be putting a down payment into escrow and on the property, you will need those bank statements, mutual fund accounts, Deferred comp, or IRA that will reflect you have access to the money.
- FICO Scores – this sweetens the deal and should be made available by your mortgage lender.
- Love Letter – This is a critical step in the success of a First time home buyer. Read about love letter writing.
Your offer – The agent you choose will be scribing the offer. Maybe you can make your offer better besides those items related to monetary things? You will only have a certain down payment amount that will be verified at the time of the offer. You will have specific FICO scores, which will be submitted with the offer. The pre-approval letter can only be as strong as the lender who scribes it. I’m speaking about timeframes and contingencies.
Time Frames – Within a real estate contract, you have time frames to get stuff done. There will be a certain amount of time in which you will be able to do your home inspection and pest inspection for termite. There will be a particular time frame in which you will be able to secure an absolute loan approval. There is a certain time that escrow will be required to close. A real estate contract is all about time frames and their proper execution.
Maybe you can have some of those timeframes shrunk to make the seller find your offer more attractive. As long as those resources you will be using can “get er done”, you should be in good shape whittling down the inspection and loan approval time frames.
BTW – a solid realtor will ensure all other parties that have to be involved in the process will be able to adhere to compressed timeframes. They will do so in writing.
If you were going with a 45-day escrow, speak with all parties involved and maybe you can shrink that to a 30-day escrow. Especially on vacant real estate listings. If the listing is occupied, this maybe a moot point. It’s going to be up to your Santa Clarita real estate professional to find out all particulars so you can have the very best advantage as a Santa Clarita home buyer.
I’m Connor MacIvor and this has been a fun article to write. Be well and please share often. I will be here running silent and deep until you reach out to me and then I will snap to and say “How High!”