HOME IS ON THE WAY!!!!


Oh man! Oh man! I can't believe it's almost here! I am in the home stretch (ALL PUNS INTENDED!)

Man, I know I said I wasn't going to stress out, now it just hit me like a tidal wave. My hands are sweaty just writing this! Still quite a few things.

[if you are interested in one buyer's perspective of the home buying process, first get comfortable and get some eye-drops, and please read on. My experience is for new home construction, so may differ between builders and for existing home purchases, although I many of the concepts may apply accross the board].

If there is something I learned about the home-buying process, it's to be patient, and make it a point to get informed from friends who have purchased, or who are in the market, or who are in the business as agents/brokers themselves. I know I will not know all the tricks-of-the-trade, but the process is still fun. You have to be willing to learn, and don't always accept the first good property you see! I understand everyone has different tastes & preferences, and I think So-Cal has more than large enough selection to satisfy the toughest customer! Sorta like how Starbucks can make any coffee concoction you can think of!! (Starbuck's is cool!).

This letter came with 7 pages of basically a timeline of specific events that will take place regarding final loan procedures, to timing of vacate notice (if you are renting), to any final documents required to close the deal. So this is what my final 60 days will be:

-Approx 45 days prior to close: lender to order appraisal and to discuss rate locking options more acutely.

-Aprox 30 days prior to close: must lock rate and decide on loan program that works for you. (Please note, that the time frame may differ between new construction, and existing home purchases.) Also, usually if you decide to acquire outside lending from the builder's preferred lender, usually there is stipulation in the Purchase Agreement as far as to how much time you have to shop around for lending. In my case, there was a 72-hour timeframe from time of first signing back in June, which got me worried cuz how would you know you are getting the best deal when closing is 7 - 10 months out? Anything can happen to rates. Luckily as long as you do not sign anything in the form of a "commitment", you have full right to still look around. I inquired, and apparently there is flexibility where ultimately the builder or seller may approve. I've learned its all about doing peripheral research first upfront, getting to know the lender during the first couple meetings, narrowing it to a few, and then deciding based on gathered info who you would trust the most going with. Relationship is key.

To illustrate, I was talking to my cousin Annie this morning, who also is a licensed Real Estate Broker and Loan agent, and she was very helpful and helping me understand the agent perspective during the transaction process. She says it's frustrating many times, when you have a potential client, who comes in and sits with you, seems willing to use you as an agent, and then decides far into the escrow process that they are still "shopping around" and pitting you against some other agent "X" by bringing a competing good faith estimate ("gfe"). She was telling me about her latest client, who she did a lot of leg work to prepare info, background check, pre-approve, etc, only to find out after all that work, that the client was still "shopping" around. So until the deal is closed--that is if that client decides to go with my cousin-- she is basically working for "free". I understand there is the cost of doing business, and the inherent risks are there, but she was just sharing with me to illustrate that a good lender is basically trying to earn your trust, and to help the buyer understand that they will work hard to earn that relationship. Of course there is the understanding that the consumer has rights, and freedom to shop around, but nonetheless it does help to know what the agent's side of the table feels like, especially when its one you know (or are related to).

I appreciated her sharing so much because her character is all about maintaining good relationships in and outside church, and it is encouraging to see that she is able to apply it successfully to her business practices. In my own life, I hope at the end of the day, that can be said of me.

So how does Annie's info relate to me and my housing situation? My plan was compare gfe's between my cousin and my current loan officer and see if the loan officer could match or beat it. While it's still a hard ball way to get the best deal, my motive totally missed the mark. I had already established a good relationship with my loan officer. I had asked a million questions (with the help of my sister...ok, I asked about 5, and she asked the remaining 999,995 questions..shows where the brains went..hehe..) and she answered every one of them. We gave about 90% indication we were going to go with her, reserving the other 10% to use our cousin as a proxy, and potential alternative. Again, this is late into the process. So after our talk this morning, I realized that I would be burning some bridges with our loan officer who already did so much work; the hard work to earn our trust and her way of showing us that she is doing the best she can to offer us the most competitive rates and loan program in the area. She has 14 + years experience, and I just totally forgot about that, cuz I was hungry for the "deal". At the end of the conversation with my cousin, she suggested I stick with my current loan officer for ease of transaction: we do have an established relationship; she has up to date information from directly from the builder since she is the preferred lender for that site (whereas my cousin would have to start from "scratch"); and because the loan officer is local (my cousin lives in Nor-Cal).

-Approx 14-21 days prior to close: Following up with lender to make sure loan documents have been ordered and are processing. Need to make sure you are available in person to come in to sign papers the week the paperwork arrives.

-Approx 1 week prior to close: Time to sign on loan docs!! Funds are then deposited in escrow account one day prior to close. Concurrently, I will need to deposit downpayment in certified funds. In addition, an appointment will be made to meet with the Construction representative to do a thorough walk through and conduct a New Home Orientation.

-The Close of Escrow: After a week after the orientation, we sign on the dotted line for our close of escrow and title. Funds are deposited one day prior to close. Then escrow company orders Change of Ownership to our name. The Grand/Deed is stamped, signed, and dated. Once the phone call confirmation from escrow is made, I get handed the keys and then....

Then...

ITS TIME TO PARTAY!!!!

Now I have to figure out game plan for moving. That's a whole 'nother blog!! Ha ha, j/k. We all know how that works.