A few things that you should know. Normally, using a realtor is a smart idea. There are exceptions if you know the seller if that means a good deal. Secondly, get a pre-approval before you go out. A good broker loan officer will write the letter for the maximum that you are qualified for, according to your debt-to-income ration. Next, when you find a home, have your loan officer tailor the pre-approval to that price (it can't be more than the maximum pre-approval). This keeps the seller from changing the price to match what you can afford. A good loan officer should be able to customize your letter within minutes, any time of the day and on the weekends - banks can't do this. Make sure you have a loan officer who communicates with you, your realtor, and the seller's realtor. Many banks don't do this.
There are a couple of things you can do to cement the agreement before you're outbid, which is very common in this market. Offer to double or triple the earnest money request. It comes out of the purchase anyway. So, you have nothing to lose unless you back out after signing the purchase agreement. Offer the seller an extra month to move out. This is huge because they're usually worried about being able to accomplish everything with a short closing target. This may cost you an extra month's rent, but is far cheaper than an extra 10% or more on the asking price. Always, always, always get an inspection for a purchase.
My last purchase, which was a huge challenge because of the borrower's credit and debt, closed in 13 days...two days before the purchase agreement close date. The purchase before that was cleared to close on the same day it was submitted, three weeks before the closing date. A borrower/buyer has plenty of other things to coordinate without having to worry about whether the financing is going through.
Get a broker who has several lenders to choose from. I have over 15. If you give me your business, I'll make sure you're taken care of in the most efficient and timely manner possible, from the pre-approval to the close. I will communicate with you and both realtors at every stage of the loan. In addition, depending on your income and where you live, I can get you a loan with a down payment of as little as 3%. Call me 360-771-1914.
