Timing Your Move

So you've finally chosen your dream home. In theory, you should be able to apply for your mortgage loan, give notice to your landlord or tell your parents you're moving out, and make preparations to move in 30-45 days. Realistically, this may not happen. So here are a few realities about the home buying process to keep in mind.

Getting a mortgage loan can be challenging these days due to new, tighter restrictions. If you are house hunting, take the time to get pre-approved from a lender so your mortgage application process is smooth. If you find you have bumps in your credit history, you may be able to smooth them out in time to qualify for the $8,000 tax credit offered this year - but not within 30 days.

Often renters time their house shopping to when their lease is set to expire, so as to prevent any penalties involved with breaking the lease later. This is smart planning but make sure to have a back up plan. Some landlords will allow you to go month-to-month or even week-to-week if you know you will not be there for the lease term - often at a higher rate. There may also be an "escape clause" from your lease if you buy a home. Check out your lease, so you can finesse the time to your advantage.

If you are currently a homeowner, you may have a challenge on your hands if you find your new dream home before your old one has sold. The seller may accept a contingency clause in your offer to buy, but needs some reasonable time frame. In a market where it is taking longer than usual to sell homes, it is a good idea to have yours on the market well before you allow yourself to be smitten with a new one.

If you have placed an offer on an "REO" property (Real Estate Owned or Lender Controlled) or short sale property, do not put the moving company on speed dial. You could wait 30 days to six months to get an answer from the lender. As a backup plan, keep looking at other homes. There are many great affordable homes in the area that can be yours in less time.

Real estate timing can be frustrating, especially to a first time buyer. If you are thinking of buying, now is the time to talk with an experience Realtor® from Sandy's Team. Give us a call