• A. Guru

Working your biggest investment: Buying and Selling





Preparing yourself to purchase by getting your credit as well as your documentation in order can be a huge task.


While you are prepping to purchase a home, make sure that you do your homework to make sure that you are set up for success in your future space. We have successfully purchased twice and sold once. Over the years, I have given a few pointers to others and they’ve seem to work seamlessly. So, I’m sharing it all with you for the next purchase or your first purchase!

First things first...

You should always keep this information on hand:

  • recent past two year’s tax info

  • Any and all pay offs, lien releases (if applicable)

  • Job title documentation if there have been any changes in the past two years

  • Recent bank statements

  • Recent pay stubs

  • Explanations for cash (if you intend to use towards transaction)

  • Commission documentation, if applicable. (they will average this. If you cannot produce documents to establish average, they will only qualify you on your base.)

  • Any claims information for disclosures


What you need to start prepping:

  • Choice in insurances

  • ability to reflect less than 30% of utilization of your funds

  • Your payment acct/method for settling closing cost.

  • Prepare to invest in a good inspector. Don’t skip this!



Unspoken golden tickets:

  • Stop using all credit cards....like DON’T do it AT ALL. (No says this but to freeze exactly where you are in the best course of action.)

  • Do not establish new services, etc unless you have a clear to close.

  • Do not introduce any accounts that you don’t desire to be considered. Everything you present will be combed through.

  • You CAN wait to lock in your rate if you feel a lower rate may come prior to underwriting.

  • “New Normal” tip: Do not do any forbearance on your current home, if you own.

  • Don’t leave your next home solely up to the realtor to find! Once you find something of interest, RESEARCH it!!! Sale history, tax history, schools, etc. There are so many sites that provide the same access they receive.


Every time you think you find your next potential home, you should:


REQUEST a write up and sample closing statement so you know what your are looking to come out of pocket for. Each home is different!! County, city, seller contributions, etc. all play a role. This takes very little time for the lender to prepare but can help you make informed decisions and narrow down your options With business savvy.


Purchase

Thinking of the master plan

This is a big step that many don’t even consider when purchasing a home. A lot of other factors dictate and determine where we choose to purchase, but there are main factors that you should always consider when buying a home. When you are purchasing a home, you should always think about selling it. Look at the bullet points that you desire and see where they fit on the wishlist for the standard buyer. These are going to be your “Seal the deals” should you decide or need to sell. We all like to think of our house as being the only place we will forever live, but the reality is, t


here may come a time where you decide to sell or life changes and you need more space or to downsize. You don't want to be stuck because you planned poorly. You need to be able to move freely without hassle, if possible. Setting yourself up from the beginning, will help ensure that.


Business mind will win every time!

This is another one that goes unnoticed. Looking at city rezoning as well as plans for future development can put you in a position to purchase and see a quick return on your investment. We were able to turn a nearly 180k profit from our home we recently sold using this thought process! The best way to find this information is to look at the city government websites and research the zoning and city plans tab to find out what they have APPROVED. Once you have this information, you can utilize it when creating your search for prospective areas to live in. Whether you have children or not, think like a builder/developer and check out the schools in the area. Review the consistent sc


ores in rankings of the overall community. Knowing this information will give you a good indication on whether or not this is a thriving area or if it’s a low-growth community; which could hurt resale in the future. To win, you must think like a builder/developer not with emotional intent. That comes afterwards, ha, ha!


Post Purchase

keep it right, keep it tight!

This one is simple but often overlooked. Once you close on your home and begin living in your new investment, make sure that you keep up with maintenance. Keep all documentation for any services, new installations, upgrades and anything else that has been added since you purchased the home. Having this paperwork handy, will assist you when negotiating begins and offers additional selling points for your home. Items such as re-caulking, resealing, touching up paint as you go and getting routine maintenance on AC units, etc. all play a factor in the quick sale of your home; should you decide to sell. You know what they say: If you stay ready, you don’t have to get ready!


Deciding to sell


When you decide to put your home on the market, you should always make sure that you have spoken with a lender and had a walk-through with a real estate agent. They will give you the best information possible to help you make a solid decision on whether or not it is the proper time to sell. Once you have the green light, make sure that you keep all paperwork for yourself as you don’t know how quick the process will go. Tax documents, previous sale information, HOA contacts, bi-laws and fees, information, will all be requested in the whirlwind.


If you are prepared, you can win. If you’re proactive, you can benefit most from your investment. I will further discuss shaping up credit, staging your existing home and best practices when on the search in the weeks to come. Stay tuned!




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