The Home Purchase Roller Coaster…………..

Buying your first home is such an exciting time. There are so many things that will take place in such a short period of time. Each and every step of the process is a function of the process.

The word Process can make the home-buying experience sound like such a difficult painful task. By definition the word Process means a systematic series of actions directed to some end or a continuous action, operation, or series of changes taking place in a definite manner. (information taken from The first of the definitions is the one that I think best represents the home purchase roller coaster.

Here we go!

Here we go!

Obviously the end is the day that you as the consumer would get the keys to your new home. The systematic series of actions that precede the glorious day are described herin as the Roller Coaster.  

Action 1 Boarding- Meet with your Loan Officer of choice and get Pre-approved for a home loan that will meet your budget. This is generally about a one hour meeting preferably face to face to discuss the payment that you feel is suitable, your three c’s (see my post on fannie mae/ Freddie mac costs) and the type of financing based on down payment and qualifications that we will secure. (I say that this is the first action but I receive the majority of my business, 70% from my Real Estate partners, so many times you have looked at a home that sparked your interest or at least started some sort of search). You are now pre-approved strapped into the seat and ready to take off.

Action 2 The Departure and Ascent-  You are now pre-approved and you are out with your Real Estate agent looking at homes. You have found a couple that you like and have decided to write some offers. You sit down with your Real Estate agent and strategize on the offer you want to write. Many times after you write that offer you are already mentally moving in the house. “This is where we will put the blue couch” etc. At the same time you are processing the payment in your mind and saying what have we done right as you begin to peer straight down the initial drop.

Action 3 The first drop- You are peering right over the top of the drop waiting for your Realtor to call you back with the news. You have told everybody about the home that you made an offer on and how you don’t have your hopes up but you do and that is natural. You are no different than the rest. The phone rings and the stomach drops, You are on your way down. Your Realtor says I am sorry they have countered and the bank say do not even respond if you do not at least offer 15K more. This is out of your limit and you know it. The rush and the thrill of the ascent and the short drop are over. You are about to begin another ascent.

Action 4 The second ascent- After a little frustration you are on your way up again and have found a few houses that you want to write on. You write offers much quicker this time because it is not so foreign and your expectation is less and you realize it was not that bad. You can do this. You submit two offers this time hoping that you will get one of them. Again you are starting to peer over the next sequence of the roller coaster.

Action 5 The Tight Turn and The Corkscrew- You begin to descend into the tight turn. This is when the Real Estate agent calls you and lets you know that one of the properties has made a small counter and they would like to talk to you about it. You meet with them and while you are meeting you come out of the tight turn and you are turned upside down briefly when they answer their phone and the other home has countered. Which do we like better? What is the better investment? What one will we get we don’t want to be disappointed? This is is a lot to handle. You choose the one that you like the most and  submit the counter.  You have made it through the corkscrew and are being thrown into another tight turn. Then your offer is accepted right as you look down another huge drop.

Action 6 The big drop- Now that you are in contract it seems like things are moving fast. The nerves set in as your agent sends in the earnest money deposit, the loan officer asking for the appraisal check, the checks for home inspection and pest if you want it. Money is pouring out and you are saying what did we get ourselves into for real this time. A million different payment scenarios, excitement, fear, second guessing, excitement, nerves you get the picture are all shooting through you as you are speeding down the face of the coaster.

Action 7 another ascent or straight track- Things calm down for minute. The rate is locked the inspections are done and you are waiting for final underwriting approval. The loan is being Processed. That process is gather all pertinent info and updated financial statements if it has been greater than a month, submit the loan to underwriting and wait(average underwriting 5 days right now)., the approval is in 5 days later and there are conditions that we must meet. Many times the conditions are simple but other times the wholesaler asks for things like birth certificates now a days.

Action 8 The loop da loop- This is the point that you are asked to gather some documentation that may seem hard to obtain. Sometimes the giftor does not want to give a bank statement, you are asked to release financial contingencies and have your deposit at risk and you are not certain you can provide exactly what the underwriter has asked for. This is the time that you must remember that both your Real Estate agent and I are on this coaster with you. We want to get to the end safely and successfully as well. We made it through both the loops. Awesome.

Action 9 the last death drop- This would be the signing of the loan documents. You are prepared and you know what is coming but it is a large commitment. No time to turn back now. You sit in front of the notary and begin to sign your life over to the new mortgage payment. This is a long drop but it goes by very quickly. We have made it to the bottom. Yes we are done! Not Quite.

Action 10 The final turn and the end- We still have to fund the loan and based on how well a Loan Officer has done their job there is nothing you should have to do but wait out the steps. You take that last turn and they ask for something else to fund your loan. You are throuwn for a second but we are through it before you know it. We have made it to the end and the Roller coaster comes to a stop. You realize that it was not that bad at all as you get out but you are clearly trying to get your bearings on why you just put yourself through it.

Action 11 The conclusion- You went through it because it is the cornerstone to an amusement park and the reason that you go. We all dream of home-ownership and none of us are quite prepared for the Process. The reason that you go on the Roller coaster with friends is that it makes it that much easier. We as professionals are trained to warn you of the layout of the coaster so that it is manageable and in the end you say Let’s do it again!

That will come in due time. For now I say go get something to eat and re-energize as it is time to get on another ride…………..The Move!

Who is buying the drinks and pizza we bought the house:)

Who is buying the drinks and pizza we bought the house:)


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