The real estate buying process

What may seem like the most daunting task of your life is often a relatively straightforward process, if it is approached from the proper vantage point. From the time a client begins searching for a home to the day they close, usually involves about 2-3 months, and this time can either be smooth and enjoyable, or painful. The two most significant obstacles during this time are the loan underwriting, and the inspections and appraisals.

Securing a mortgage has certainly become more difficult since the recent economic downturn, but it is still a relatively easy process if you have sufficient income. Typically it involves a "two step" process of, first, getting pre-approved, than full application and appraisal, once a house is found and secured under contract.

While the home is under contract and the underwriting is in process, the inspections (pest, structural, mechanical, survey, radon, etc.) will prove to be either the solidifier, or deal killer. This is where an initial visual inspection by the realtor and client is crucial, since, if the inspections show significant problems and the contract is terminated, the inspection funds are non-refundable.

Depending mostly on the parties involved, the home buying process is often a relatively smooth and even enjoyable journey, but just like anything else in life, the keys to success are knowledge and planning.

I posted some tips regarding what to look for as you begin to search for your new home.

Finding just the right home

4 Months in the Belmont Rehab

I went over to the house this morning to finish some joint compounding in the bathroom and I see that some of the new sheetrock I put up is moldy. The leak is apparently coming from what I thought my dad and I had already repaired, an exhaust pipe coming from the waste plumbing in the back of the house. I added another layer of roofing tar hoping that will be enough.

It has been almost 4 months of going to the house about 3-4 times each week and I gotta say, it’s starting to wear me down. I know that in any endeavor, whether that be a new job, project, home, or even relationship, reality starts to sink in and the novelty of it all is gone after a few months. Now it’s just a matter of mentally pushing through. I continue to see the finished project and I continue to feel as though it is so far out of reach with each new problem that arises.

I think I just need a little break from it all. In the end, it will be more than worth it. On another bright note, my real estate career is really taking off!

Offer fail due to FHA financing

After about 6 property tours searching for a very specific type of home, one of my clients finally fell in love, however during the property search, the home was put under contract. A few days later the contract fell through and I notified her that the house was back on the market. Needless to say, she was excited. We were informed that there was already one other offer on the table, so we put in an offer for full price. The next day, the listing agent called me and informed me that the seller had decided to go with the other home offer, due to the fact that the buyer was able to have a conventional loan, even though we offered a higher price.

This is just another example of the challenges with buying property using an FHA mortgage as opposed to Conventional. Using FHA may save on fees, but it certainly makes for a much more challenging home buying process.