The rules have changed so much in the last few months for buyer's trying to buy real estate today. Gone are the days when you could make an offer contingent on selling your current house. Lender's no longer will accept your offer hoping you will get prequalified to buy during the next couple weeks. No one will just take your word for the fact that you can really afford to pay cash for a property. They won't give you a few days after you submit your offer and they accept it to get everything gathered together. Today you must be prepared with all your paperwork so your offer will be complete and seriously considered.
No offers on real estate will even be considered these days without knowing the buyer has already been prequalified or has the funds to purchae. A complete offer must be submitted in order to be considered. A complete offer includes an offer to purchase, the prequalification letter or proof of funds, and an earnest money deposit (usually in the form of a personal check), and any other documents required by your local board of Realtors. Here in Nevada that would include a signed Duties Owed form and a Confirmation of Agency.
Step one is to figure out how you're going to pay for a property before you go house shopping. If you're planning to pay cash, you'll need to have some sort of "Proof of Funds." This can be as simple as a copy of your bank statement or investment account. Of course, you can request that your financial institution to provide you with a letter that states you can afford to spend up to a certain amount. Besides, isn't it better to know how much you can afford to buy so you don't look at houses that are out of your budget or find out later you could have afforded to buy a much larger house.
Unfortunately, not everyone has a large pile of cash laying around to pay for a house. So, if you're planning to finance, you must get prequalified by a lender or loan broker. Some lender-owned properties or REOs (real estate owned) will require you to prequalify with a loan officer of their choice. This doesn't mean you must borrow the money from them, but the lender wants to be sure you can actually qualify to buy the property. Your real estate agent will be able to tell you if this is a prerequisite on the property you choose.
So if you're planning to buy a house, you must get your financing or proof of funds lined up prior to shopping for property. This way, you know that when you find the right property, you'll be able to buy it. The more prepared you are, the better your chance of getting your offer accepted.
Now go out there and buy a house.
Heather Peck
Rosen & Company West
702-595-7380
LasVegasExpert@yahoo.com
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