Buying Power Checklist
 
Increase your chances to get your offer accepted with these items:
Offer Free Occupancy 
 
Buyer assuming city inspection (if applicable) 
 
Offer extended occupancy (45 - 90 days) 
 
FHA Addendum Zero cost to seller (if applicable) 
 
Pay over appraisal value (5 - 10% min.) 
 
Waive the appraisal (cash offers) 
 
 

No contingency on Sale or Close 
Larger EMD (3% min.) 


Full Lender approval (not just a pre approval) 


Nonrefundable EMD 


More money down on loan than typical for price range 


Appraisal first or at same time as inspection (cash offers) 

No seller concessions 


Proof of EMD and down payment funds 


Personal letter from the buyer relate to them 

Shorter timelines 
 
Offer over asking price (if applicable) 
 
Cash Buyer or Conventional Financing (no FHA) 
 
Waive the inspection 

Writing the Offer

When you are ready to write an offer, you will need a check for an Earnest Money Deposit (EMD) and a pre-approval/qualification letterfrom your lender (I may already have this). It is important you know what kind of financing your lender is providing and what you are putting down (usually a percentage). You will lose your EMD if you back out of the transaction for no good reason.

An EMD is a way of telling a seller that you are serious about buying the house. After your offer is accepted, I will be depositing the EMD with the title company immediately


A pre-approval/qualification shows a seller that you have already started the process with a lender and are able to afford what you’re offering.

Offer Accepted!

In your Purchase Agreement (PA), you will have time limits that you follow throughout the home buying process. I will be keeping us on track for these time limits but you should be aware of them. It is important to follow these time limits so the closing does not get delayed. I will then reach out to your lender to give them a “heads up” that we have a signed contract. This is when the lender will start to keep close contact with you to stay on top of the processing part of the transaction. Please note some lenders don’t like to call you until the inspection period is over. Also note there will be many items your lender is going to ask for at this time, be sure to be thorough and get these items to them in a timely fashion. 

Home Inspection

During the inspection period, I encourage you to call the city where the property is located and see if there are any assessments on the property that the seller may not be aware of. If there is, that needs to be addressed immediately. If you close on the property and don’t discuss the outstanding assessments, then they become your responsibility. If there is any doubt if the property is in a flood zone, please contact your insurance agent to confirm or deny. 

The Appraisal

Shortly after inspection, the lender will order an appraisal. Within about a week, the appraiser will go to the property and determine if the property is worth what the bank is lending you. This takes about a week to get back. When the appraisal is done, the lender will be the first to know, she will then call you and I to let us know if the appraisal is “at value”. If the appraiser thinks the value of the property is lower than the contract price, we have choices:

Seller lowers their price
Buyer brings cash to make up the difference to the table
Seller and buyer meet in the middle and buyer brings cash to the table
Buyer walks away
Seller decides not to sell
 

An appraisal may come back at value but the lender (underwriting) says some things need to be fixed first. This is more likely to happen with an FHA or VA appraisal. The buyer usually covers the cost of a reinspection. There are many different scenarios that can happen depending on the extent of required repairs. These issues will need to be negotiated to satisfy the lender. The buyer may be responsible for a re-inspection fee.

Lender Underwriting

Once your loan goes into underwriting, there isn’t much left to do with me. You will be working mostly with the lender getting whatever documents they will need to get to underwriting. Please be diligent about getting items to the lender in a timely fashion so you don’t delay the closing process. I suggest every few days you check in with your lender to make sure everything is on track. Lender will communicate with you when you need to have insurance on the property, however you should do some shopping around beforehand. During this time, you will hear from me every Monday unless something of importance comes up. 

Closing

Once your loan conditions are met and your loan is out of underwriting, your lender will then send you a CD (Closing Document). The CD will give you a breakdown of funds and what you will need to bring to closing and in what form of funds to bring to closing. The CD must be signed and sent back to the lender so they can issue the clear to close. Be sure to verify that with your agent as some title companies are particular on what they accept for funds. 48 hours before closing or less, we will do a walk-through on the property to make sure everything is as it should be. You will need to bring your driver’s license and necessary documents with you to closing. You should also contact the utility companies to have them transferred into your name the day before or day of closing. As always, any questions, just ask!! 

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Download our Seller's Guide PDF for your convenience!

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