Buying a home in Greenwood Village CO - Buying with cash or getting a loan?
Now that you have thought about buying a home in Greenwood Village CO and are getting more and more excited about the idea of finding your new home, an important factor of buying a home needs to be address - How are you planning on funding your home purchase? It may mean getting pre-approved for a loan or a mortgage or if buying with cash, providing a proof-of-funds document.
Pre-approval | Lender Letter | Proof-of-funds
CASH - Purchase | Proof-of-Funds
If you are buying with cash you will need to provide to the seller what is called Proof-of-funds. It is a document, from your financial institution that shows that you have the money needed to purchase a home with cash. It may be a bank statement, or letter from the manager at the bank. 
LOAN/MORTGAGE | Pre-approval
If you are going to finance any part of the home purchase you will need to get from your lender/loan officer a what is around here called "the lender letter". The Lender Letter is requested practically by all sellers in today's market. If you can not or do not have one handy when you are ready to submit an offer to the seller. The seller may not even give your offer a second look.
Pre-approval means that you apply for the loan. The lender will verify how much of a loan you can qualify for and what you are comfortable with along with down payment. The lender will also go over options of what types of loans may be available for you.
CHECKING IT TWICE
It is common for the listing agent to contact the lender listed on your lender letter or the contact person in your proof of funds document to verify the financial information. Today's sellers want to make sure they have a strong buyer that will be able to buy the house and not encounter any unexpected surprises while the sale is pending. It may be the a seller is more likely to pick a cash buyer if there are multiple offers as the seller may feel more comfortable about getting the sale to go through.
WHAT HAPPENS NEXT?
What happens is, when you /your agent is ready to present your offer to the seller, the lender letter or proof of funds is sent along with the offer. The other thing that is sent along is a copy of an Ernest Money Check. This is typically a copy of a personal check made out to either the listing real estate company or the title company facilitating the sale. (more about that later on in the series). The Ernest money is your promise (in-a-way) or commitment to buying the home.
If you have any questions it is important to talk with your lender or ask us anything relating to the real estate side of your upcoming home purchase. If you do not have a lender we can provide a few lenders that you can contact.
This is part 2 of 7 part series of post Buying a home in Greenwood Village Colorado
Part 1 - Buyer's Checklist / Wishlist
Part 2 - Buying with cash or getting a loan?
Brian and Rita Burke
Kenna Real Estate
303.995.4220 Office ext 701
Homes@kennarealestate.com
Kenna Real Estate Website Multiple Search Tools to find your new home!
Disclaimer: Kenna Real Estate does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.
Copyright 2009.© Kenna Real Estate. Rita Burke. All Rights Reserved. Aug 17th 2009. "Buying a home in Greenwood Village CO - buying with cash or getting a loan? - Part 2 ".
Comments (2)Subscribe to CommentsComment