12 Weeks to Homeownership – Week 5
Get Your Money in the Bank

Welcome to week 5!

So far you have set your homeownership goals, you’ve worked with a loan officer to get pre-approved, you’ve hired your real estate agent, you’ve supplied the documents required and you’ve been house hunting for a couple of weeks.

That’s a great four weeks!

You should be close to finding your home if you haven’t found it already.

Now, this week is very important. You need to have your funds available for earnest money, the appraisal, home inspection, down payment and closing costs.

What does that mean, exactly?

Well, it means all money available should be in your bank account. Whether you are using a 401K, gift funds as allowed, or cashing out investments.

Seasoning simply means that those funds are deposited into the account you’re going to pay from at least 60 days before closing.

We talked about this in week two, but if you still need to deposit money, you need to do that right now.

This is the week that all of those loose ends need to be taken care of before you go into contract.

Some of you might already be under contract, so having your funds available is very critical. If this is the case, you may need to explain where these funds came from.

It’s called a Letter of Explanation or an “LOE”.

Others might still be looking for the home that feels right. In this case, I still recommend that you get your financials ready right now.

That way, you can pull the trigger on a moment’s notice.

You will be much better prepared if you keep in contact with your loan officer throughout the house shopping process.

The moment you decide to put in an offer, as your lender for a pre-approval letter in the amount you are going to offer.

If you have to counter offer, you’ll need to show a new letter showing your pre-approval for that new amount you’re countering with.

Your realtor is going to help guide you, along with your loan officer, through this process.

The main thing to remember is to keep communication open on all fronts, be responsive, and good luck!

I’ll see you on week 6 which is all about getting into contract on your new home.

We’ll continue on next week and remember – our Folsom mortgage team is here to answer any questions you may have! Don’t hesitate to give us a call at (916) 985-3200.