Friday, August 23, 2013

Q: We intend to buy for cash but part of the cash is from the sale of our house in Kansas.

 
We have it listed and priced to sell fast. We made an offer on something here but the seller wanted something called a "verification of funds to close."  We didn’t want to fill that out. Our finances are private. How can we work around this?

A: When you buy a house your finances are not private. The seller has the right and the listing agent the obligation; to be sure you can actually come up with the money to close on the sale of the house. To represent that you can pay cash and not really have that ability is fraud. If you have to sell your house in Kansas first, then you will need to make an offer contingent on that sale.

Frankly, most sellers will not accept a contingency offer. It could take months for your house to sell and they are basically off the market during that time. You can make a non-contingent offer once you have a buyer for your home in Kansas, which is a good way to go. You would use a different form that allows you some time to wait until your house in Kansas closes before closing on the home here. As for verification of funds, that will be required in any cash sale. A third party, usually a banker, stock broker, money management firm or trust attorney, will have to verify that you have enough cash to close the sale.


Special Note: We just want to thank all of our many clients and friends for 20 years of support! Yes, Amiad & Associates is 20 years old this year. We intend to keep working for buyers and doing all we can for this wonderful community for many years to come.

Friday, August 16, 2013

Q: We’ve missed out on a few houses this year because they sold so fast.

I don’t know how people can make up their minds in a day that they want to buy something. We were pre-approved with our lender but now she is saying we have to update all of that information again to stay pre-approved. How can we buy if things are moving so fast and the lenders want more and more paperwork all the time?

A: It can be very frustrating to be in such a busy market. Part of the reason for this market is due to pent up demand and low inventory, plus concerns that interest rates and prices are going up.

  I recommend that you go see everything in your price range on a regular basis. The more you see the better you will hone your skills at judging a house and property. Many people fall in love with a home that was nothing like what they thought they wanted. You don’t know until you look. Once you’re clear about what will work for you, it should get easier to make up your mind quickly.
 
Remember that nothing will be perfect. You have to be flexible or you’ll end up never having a home here at all. No home will have all that you’re looking for so narrow down the field to the one or two most important things. You can create the rest as you live in the house.
 
As for getting a loan, the lenders all have more regulations now than ever before and they have to know that you are still in the same position financially that you were months ago. You may have lost a job, changed jobs, charged up a credit debt, or any number of things that will change the picture for your home loan. Be patient and keep the lender informed and updated all the time. You will need that preapproval letter to go with any offer to buy.  Get organized so that all of your financial information is at your figure tips. Good luck!