It is understandable that as a first-time home buyer you may not be aware of the intricacies that go with buying a new home. Imagine the pressure that you’ll feel having to go through this process without any prior knowledge and with a deadline to beat too! Usually, it takes 12 weeks to search for a home (you really have to be thorough especially when pickings are thin) and an additional 6o days to get the documents in order to close the sale. With the November 30 deadline looming on the horizon, you only have 12 weeks to search for a home and close the sale and beat all the other first time home buyers who are rushing to take advantage of the $8,000 tax credit.
What can you do to get a jump on the process? The best thing that you can do for yourself is to get an online account with your preferred realtor. With an online account, you can specify which type of house you’re looking for, which location you prefer, what your budget is, whether you’re looking for a furnished or unfurnished and many other details. Whenever your conditions are, you’ll most likely going to receive an email (usually), or phone call to notify you of any updates so that you can schedule a look-see.
The next step is to prepare for negotiation. What better way to get the upper hand than to arm yourself with updated information on prices, market sales, features and property values? If you come prepared then the lender knows you mean business and aren’t likely to be fooled by smooth words.
Appraisals take time so you should make sure that the lender can satisfactorily deliver their appraisal on time. Ask for a desk price if the property doesn’t appraise for the bid price.
Financing all boils down to the documents that serve as proof of income so you should start compiling your pay stubs, income tax statements and all that can help your cause. The more complete your documents, the faster the approval rate.
The last thing that you can probably too is ask your insurance company to forward a cost estimate to your escrow company early. The earlier they can accomplish this, the faster the escrow company can estimate your closing costs which you have to pay come closing time.