What paperwork do I need for the buying process?

The start of the Real Estate season is starting, are you ready? I've been getting a lot of questions about what paperwork buyers need in order to make an offer on a house.

Besides the contract, here's a short list of what you need--

-If you're financing the transaction you'll need a pre-APPROVAL letter (not a pre-QUALIFICATION letter).  Pre-approval letters are letters from Lenders that show that they've looked through your finances and are confident they can lend you $X amount.

-Bank statements to prove you can afford the down payment you mentioned in the contract.  Feel free to black out the account numbers for privacy.
  
-If you're paying cash, bank statements to support your all-cash offer.  This can be 1 bank statement or multiple ones, as long as they add up to the offer price and can be wired to escrow 3 days before escrow closes, you should be ok.  Remember, you cannot write an offer saying it's all cash and then decide to get a loan while you're in contract. 

-Personal letter.  These can set you apart from the other buyers.  Remember--they do not work on bank owned properties or short sale transactions.  Both are looking at the bottom line. 

Comments

Post a Comment

Popular posts from this blog

Green-improvement Loans May Cause Problems for Consumers

A story in the Press-Enterprise highlights some of the difficulties real estate agents and consumers are having when it comes time to refinance or sell a home with a HERO or PACE loan. The Property Assessed Clean Energy, or PACE, program upgrades include HERO loans. The HERO program allows a homeowner to install “green” improvements at a low out-of-pocket costs, but with a payment program attached to a homeowner’s property-tax bill. Real estate professionals say well-meaning green energy loan and lease programs crafted to put idled contractors to work and pump up home values need to be scrutinized carefully. The new, energy-efficient products to lower utility payments and increase the value of a home are written into property tax bills as an added assessment, and payments can stretch out for up to 20 years. The cost, plus an administrative fee, and interest, is tax-deductible. But it also takes a first-lien position. The first-position is so important the Federal Hou...
Read more

Even More Rental Rules Coming in Hayward

The City of Hayward released a draft of a Residential Rent Stabilization and Tenant Protection Ordinance. The 45-page document presents new rules regarding:  -A landlord's "fair rate" of return on investment -Limits on rent increases including increases on vacant units -Landlord-tenant dispute resolution -Security deposits -Eviction and harassment -Discrimination based on source of income -Information landlords must provide to tenants and to the City of Hayward including terminations and rent increases. The Hayward City Council is scheduled to take action on this ordinance during its June 18 meeting. You can review the entire draft Ordinance here .
Read more