I am beginning another series about “Things That Can Make Your Las Vegas Financed Home Purchase *Blow Up* in the Middle of a Transaction.”
My ultimate goal in this series is to make Las Vegas Home Buyers aware of the challenges of a specific home’s eligibility for financing.
Congratulations! Your lender just approved you to purchase a Las Vegas area home by looking at your check stubs, debt to income ratio and you are now approved to purchase a Las Vegas area home!
Hold the phone here, *you* may be eligible to purchase a home but is the house eligible for financing? This series is designed for you to research a home’s eligibility for financing.
DISCLOSURE: I am not a lender, title company, home inspector, contractor or appraiser. I am only speaking from personal experience by working with financed Las Vegas area home buyers. Hopefully you have hired a Las Vegas area real estate agentwho will be able to spot things that can *potentially* cause problems with your financing (mostly FHA/VA) before your contract to purchase a Las Vegas area home.
Much of Las Vegas is currently priced in fire sale status. Many times when you see unusually inexpensive homes there is a reason – they are not eligible for financing and the seller does not wish to rehabilitate the home to make it eligible for financing.
As I discussed in my last post in regards to difficulty in closing a transaction, sometimes buyers cannot efficiently coordinate a smooth close and they must find alternate housing. Sometimes the bright idea pops into their head that they can rent their new house until it closes. This is fine and dandy in the cash & conventional purchase world but not such a bright idea in the FHA financing world.
FHA has a little obscure rule about this – tenants must occupy the property for more than 6 months prior to purchase. It is very easy to get antsy while a buyer is waiting for a short sale lienholder(s) approval or trustee sale flip deed seasoning.
I have seen buyers move in prior to their property closing only to kill their own deal. Sometimes they will make arrangements directly with the sellers and cutting out the agents that are actually representing them. While not all agents (and I have even heard of some lenders) know about this rule for loan approval, it is always best to NOT make arrangements or change the terms and conditions of your contract without your agent’s knowledge!
While moving in to your new home prior to close seems like a win-win for both the seller and the buyer – The best thing to do when it is time for you to move and you haven’t closed on your new home purchase yet is to:
When you are that close to closing, you do not want to ruin your transaction! The sellers may not want to extend the contract for another 6 months to wait for you to qualify to purchase the home! Always have a “Plan B” prior to purchasing.