When one is selling their home and subsequently buying another, it doesn’t necessarily come quickly to mind that it takes more than online
The basis of your next home mortgage approval will take both your down payment and your cash reserves into account in pre-underwriting and in underwriting. Whatever proceeds from the sale of your home you may not use for your down payment will be factored into your cash reserves and used as a positive compensating factor in approving your loan. But here’s the catch, . . the assumptions on your down payment and cash reserves have to be conservative or at least accurate to ensure that your pre-approval is as good as the paper it’s written on. If the anticipated down payment figures from the sale of the home and cash reserve calculations are wrong, so is the pre-approval.
Only your agent can give you an accurate and up to date Seller’s Estimated Net Proceeds Worksheet as only they have the local knowledge and vendor cost familiarity to give your reliable figures. It would be wise to request 2 net sheets. One at your listing price and another based on a conservative outcome from your home’s sale. Once you have these, get them to your preferred loan officer and base your pre-approval on the more conservative of the two.
Using this method, you can be confident in your financial planning on your home sale and your mortgage pre-approval at the same time so call your preferred Realtor and get your accurate and up to date Comparative Market Analysis (CMA) and Seller’s Estimated Net Proceeds Worksheets under way!
Charles Dailey – Branch Manager, Loan Officer, Certified Military Housing Specialist – CA DOC, MN DOC & WI DFI
The Home Buyers Scouting Report® is provided directly to the buyer by HBM II, a licensed national real estate brokerage service company, not to or through a lender. The FREE home finding service is provided directly to prospective homebuyers by HBM II and its real estate brokers, as part of their ordinary real estate brokerage services. HBM II, Inc. works cooperatively with other real estate agents across the United States in attempting to find ready, willing and able buyers for homes listed for sale. The role of the Preferred Loan Officer is to assist in determining a comfortable home price range for Home Buyers Marketing II, Inc. (HBM II) to use when it is searching for property listings within the buyer’s search criteria.
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