If your 2nd time homebuyer bought their first home within the last 6 years, they are probably used to newer homes with bright shiny fixtures, large open kitchens that overlook the gathering areas and ginormous master suites with 3.5 secondary bedrooms and a loft gameroom upstairs in which to hide their 3.1 children.
Your 2nd time homebuyer under the age of about 40 is used to having it all and then some and they are used to having it fairly easily. Don't forget that the 1st time homebuyer of 2005 was able to qualify for a mortgage almost faster than the time it takes to order movies online - give or take a few minutes. Fast forward to 2010 there's more than a strong likelihood that they will need to prove everything stated on the application at least ONE time if not THREE. (Why isn't it ever two?)
The experienced buyers are upset..this isn't how it all went down in 2006? Often they ask,
"Why are they doing this to me?"
I simply explain that the old, easy way caused a big mess with too many people who really couldn't afford to buy homes being in the market to buy. The good news is that buyers having to prove so much about themselves these days has taken quite a few "wanna be" buyers off the market creating great opportunity for the truly qualified buyer. They can be picky about what they want, are offered lower fixed interest rates, have time and access to more information than ever before and should be thrilled about even more affordable pricing. We just have to jump through a few worthy hoops that in the end serve to protect them more so than last time.
Looking at the bright side works and most buyers just want to know what's going on.
All home buyers need to be prepared in advance to prove it all these days and then some. I worked with a couple that were asked to prove that Mr. Buyers parents were married. Think that's crazy? I thought so too until the reasons were explained--it's a long story but it made sense. It pretty much boils down to the lender reserving the right to ask just about anything they want during any stage of the loan process. Does the borrower have to cooperate? Only if they want a loan.
Do buyers a favor and treat them all as if this is their first time and make sure their lender does the same. Accompanying the buyer to the meeting with the lender is the best way to know how they are being dealt with. If your buyer tells you that you don't need to explain things because they've done this before, let them know that unless they bought last year, it's all different now and that you are here to guide them through 2010. Ask the lender to provide them with a list of all the items that could be asked for and follow up with the buyer to make sure they are ready to provide a DNA sample in an instant. Remind them that all documentation needs to be within the last 30 days so if they're closing in June, April paystubs might not be current enough.
Remember, delayed closings are often preventable and they impact every aspect of real estate from the underwriters being backed up to the title companies being rushed to the moving trucks running idle to the utility companies not being able to flip a switch fast enough so that the locksmith can read the house numbers after dark. The domino effect continues because our delayed closing effects the buyer or seller who is scheduled a few hours later to be sellers or buyers...and so on.
*****It's Not Just Where You Live, It's How You Live*****
Amanda Hall is the Broker for Hall Team Homes. Hall Team Homes proudly serves the real estate needs of Fort Worth and surrounding areas including Arlington, Grapevine, Hurst, Euless, Bedford, North Richland Hills, Watauga, Keller and Colleyville. If you are looking to buy, sell, rent or walk away from real estate, please contact us. We consider our role in your real estate experience to be that of a trusted advisor and believe that your best decisions are informed ones.
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