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Show me the Money and I'll Show you the Houses!

Reblogger Karen Winters, Berkshire Hathaway HomeServices KoenigRubloff

Real Estate Agent with Berkshire Hathaway HomeServices Koenig Rubloff Realty Group - Chicago, IL

November 23, 2010 01:46 PM

If your plans for the new year include buying a home, I look forward to helping you do just that. You've probably already begun looking at homes online and eagerly anticipate walking through them in person. Yes, it is an exciting time, but my advice to you is not to let the excitement of looking take precedence over the business of purchasing.

The following article by fellow Active Rainer Michelle Gibson spells out the importance of having your financing in place prior to actually going out to look at homes. Step one in your home search plans should really be your loan search/financing plans. You do not want to chance losing out on your dream home because you do not have your financing in place. After all, this is only a buyer's market for those who are financially qualified to buy.

Show me the Money and I'll Show you the Houses!

Yep, the words "I'm a Cash Buyer" mean absolutely nothing unless you have a suitcase full of money or the documentation to prove it. Technically ALL buyers are cash, the only difference is where the money is coming from, your personal account or your mortgage lenders.

A while back a potential buyer contacted me and wanted to see a particular property right away. She claimed to be a cash buyer, but refused to provide documentation to prove it.

I know not all people are comfortable providing personal information like this, but I've never had a ready, willing and able buyer decline when requested.

I require all of my buyer clients to get pre-approved for a mortgage or provide proof of funds before we start searching for a home, why?

There are several reasons, but here are my top three reasons:

1. I never want to waste your time, a sellers time or my time showing you a property you "might" be able to afford.
2. Sellers will want written proof that you can afford their home when submitting an offer.
3. Qualifying for a home loan is not as easy as it use to be.

If you are a "Cash Buyer" show me the Money and I'll show you the houses!

Michelle Gibson REALTOR®
Hansen Real Estate Group Inc.
561.333.0446

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Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi

NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL

708.921.6331 - 40+ yrs experience

What a great topic for a re-blog Karen! For me personally, it's definitely most timely too ... as I'm going through a processing where the buyer just doesn't think they should have to prove anything regarding their finances. They don't understand that a paper trail is necessary .. or that underwriting won't approve you for a loan unless you produce the documentation they want. The battle is on. We'll see who ends up winning this argument ... but I'm betting on underwriting, as usual and typical regarding this issue.

We have wasted so much time bantering back and forth regarding this issue. If the client had just produced the documents needed as proof ... they would have closed over a week ago. Very frustrating .. and I hope that others heed the message you re-post above.

Again, very very timely and a great piece of info to pass on ...

Gene

Nov 29, 2010 08:54 AM

Karen Winters, Berkshire Hathaway HomeServices KoenigRubloff

Berkshire Hathaway HomeServices Koenig Rubloff Realty Group - Chicago, IL - Chicago, IL

Chicago, IL

Thanks Gene, I hope you had a nice Thanksgiving.

I still have buyers thinking that I am an on-call doorperson and that they do not have to be qualified to look at as many homes as they want for as long as they want. Very frustrating indeed. This re-blog is as much for me as for the consumer. It is my reminder to myself to hold my ground as a professional and that when I pass along this advice, I expect serious buyers to take heed.

I am so sorry for your dealings with your client. I think a lot of people are going to have to not close on time or not at all before word spreads that yes, documentation IS necessary. As much as I like some of the home shows on cable, I think it gives false hope that you can just back into a home purchase with little effort and no documentation. I can almost see why clients feel like they can see properties without providing documentation, they just need to be educated. But to go all the way though the process and still be holding back? At this point you have counseled your client extensively and the client is still resistant???? Oh my! I hope they realize how hard you are working on their behalf even as they work against their own best interest.

Nov 29, 2010 11:58 AM

Karen: Thanks for your comments and dialogue. I appreciated and enjoyed every one.

As far as my clients ... it almost seems as though they have a minor vendetta going. I think it's against banks in general, not me personally. I just happen to be the recipient of their actions and mindset. It's been like pulling teeth the whole way. Just very very hard ... much harder than it needs to be. Their choice to act this way, but it surely has made the processing terribly uncomfortable and unpleasurable for my end and theirs. Sad ...

We will get through this, I have no doubt. They will eventually close. They are clients that will never be happy long term with any lender until they get past their anger and distrust. Again, I'm trying not to take it personally.

Again, I appreciate your writing and feedback ...

Nov 29, 2010 03:42 PM

Mary Yonkers

Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA

Erie/PA Real Estate Instructor

Karen--Good advice. Thanks for the re-blog of Michelle's post. A few years ago one of my agents had just finished an open house & was approached by prospective buyer who wanted to pay cash but he did not want to sign any papers. No paper trail that was his offer. Yes, he had a suitcase of money in the trunk probably hot $$$$$$$$$$.

No, the deal was not made. We laugh every time someone mentions cash deal.

Happy holidays.

Mary

Dec 15, 2010 02:34 AM

Mary, I'm smiling over that story!!!

You would not believe it, I just had an "offer" similar to that a few hours ago. My response -- show me the documentation of where the money came from. ;)

Happy holidays!

Dec 17, 2010 02:19 PM

Show me the Money and I'll Show you the Houses!

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Karen Winters, Berkshire Hathaway HomeServices KoenigRubloff

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