Home Purchasers putting the cart before the horse can cause quite the emotional roller coaster.
We receive Internet leads and phone calls all the time, requesting to see a home. Of course, that is the fun stuff, right?
All to often, these homes are "loan specific" needing extensive repairs, acreage limits, multiple offers etc...
What does this all mean, buyers just want to see the house?
The fact is, why see it if it not obtainable? When asked what type of financing or if a cash purchase, home purchasers are taken back not understanding what that has to do with seeing the home.
Well here it is
FHA, the required appraisal is different than a conventional loan appraisal. They are looking at value and CONDITION. Which means if the home is in disrepair the appraiser will make notes on the appraisal and these will become loan conditions. With the majority of REO's(on the market, foreclosed homes) and Short Sales, the banks/sellers are most likely unwilling to agree to these repairs. Some are just to extensive. We run in to this often with prices under $150,000. These homes require a REHAB loan, not for everyone. This is one main reason we ask this question before showing a home.
USDA, has acreage and location restrictions, and debt to loan ratios are a bit tighter. It has to be considered in an approved rural area. Land cannot be sub-dividable and also has appraisal guidelines on condition.
Knowing your financing type, loan option, monthly payment and most importantly qualification at a particular price point is the first thing to accomplish before seeing a home.
I always tell my buyers, I don't want to dangle that steak, if the option is a hot dog. Never assume with lending these days. One just never knows what can become a hiccup and delay things.
So Home Purschasers, please do your due diligence and talk with a lender prior to looking at any homes. Every agent has a qualified lender they work with as a team to guide you through the process. So instead of contacting the agent and saying show me this house, it's Can you show me how I can qualify to purchase a home?
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