Take advantage of low 30 year mortgage rates and jump into a home through a short sale. This means the property usually is selling for less than in a regular sale. It can be a win-win for everyone, especially California first time home buyers. The seller is also happy to avoid foreclosure. The bank is relieved since there’s no need to takeover the property temporarily. As a buyer, though, there are three common short sale mistakes you need to be aware of and avoid.
Mistake #1: Rush an Offer
As a California first time home buyer, most likely, you can’t wait to make an offer and move into your new home. But rushing the process is the worst thing you can do since you could end up paying more for the purchase or make an offer that is priced higher than what the home is worth.
Yes, a short sale needs to happen quickly, but you need to take the time to factor in market conditions when making an offer. Do your research! If you haven’t already done so, get a pre approval on a mortgage loan. Depending on the price, you might need to apply for a jumbo loan in California. Keep in mind, these are not secured. Not all lenders offer them. At EZ Online Mortgage, we accept applications for jumbo loans.
Mistake #2: Not Working with the Seller
Another mistake California first time home buyers can make in a short sale is not working with the seller. While you’re anxious to take advantage of low 30 year mortgage rates and make an offer, the lender wants to make sure they get their money. So you’ll probably be asked to fill-out a lot of paperwork, including a hardship letter from the seller and a purchase contract. Keep an open door of communication with the seller and offer to help in any way with the paperwork. It’ll increase your chances of the lender accepting your offer, especially if you’re applying for a California jumbo loan.
Mistake #3: Buying without Inspecting
“Sold as is.” These are three words you need to be cautious of. It’s easy to make the mistake of thinking you’re getting such a good deal on a property, that you’ll have money left over for any repairs. Until you know what those repairs are, you won’t know for sure. You could be looking at laying out many times more for repairs and improvements than you anticipated.
So as a California first time home buyer with a pre-approved mortgage, make sure to get a house inspection with a reputable home inspector. Even though you’re wanting to take advantage of low 30 year mortgage rates, it’s not worth getting a bargain on the short sale if you end up paying more than you bargained for in the end.
Whether a short sale or regular sale, at EZ Online Mortgage, we make the loan application process easy, even for jumbo loans in California. Again, don’t be afraid to pursue a short sale — just don’t fall victim to common mistakes that are easily made. Contact us now and get a pre-approved mortgage!