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On The Move... A Blog for Buyers & Sellers!

Golden Plains Realty

Friday, November 22, 2013

Financing

Get PRE-APPROVED BEFORE you go property shopping. Know exactly what you are comfortable spending and how much cash you will need to bring to closing with respect to a down payment and closing costs and prepaids.

Consult with your real estate agent to find out what type of properties match the financing you are doing. For example, condominiums often require a higher down payment (20% – 30%) vs. purchasing a townhome or single family property. In some cases, certain condominium complexes are not financeable at all or must be approved by Fannie Mae, FHA or VA, depending on the type of loan you are doing.

If you want to buy a property that needs work, you may have to use a renovation type of loan product that will allow improvements to be done after closing vs. before.

In other words, don’t assume that you can buy a property that you see with the type of loan you are qualified for. Consulting with a highly knowledgeable agent once you know what kind of loan you qualify for can start your search on the right foot.

Knowledge is power and information is priceless. Surprise is NEVER a good thing in real estate. Fear results from what we don’t know. Remove the unknown from the equation and function from a position of strength knowing that you are positioning your transaction on solid footing before you go under contract.