Welcome to HomeSelling101 and today’s class on short sales!
If you’re a home buyer (or know of someone who is) that’s waiting for lender approval on your short sale offer, you maybe feel like you’re in real estate limbo, it’s what I refer to as the “short sale” waiting game!
It’s that that period of time after you’ve submitted an offer to the sellers, which they’ve accepted and now the offer/purchase agreement is somewhere in real estate la-la land.
This time period can be crucial for your own success on a short sale (or any real estate purchase for that matter) when it comes to playing the waiting game. Although I do think the short sale process is getting better today than a year or two ago, waiting for an approval can take from two to six months. You want to be sure to not do anything that would impact your qualifying rations or your FICO scoring.
Here’s a short list, I’m sure your lender has more:
- DO NOT change employment, don’t make any job changes without discussing it with your lender first.
- NO major purchases, and yes it can be hard to resist, especially when you need a washer and dryer for the new place, right?
- NO new credit, yes even if they give you a discount for that new washer and dryer…it can wait!
- NO large deposits into your account, nothing other than your “routine” deposits. If you sell a car or something like that, be sure to paper trail large amounts and talk with your lender before you make any unusual deposits.
- NO co-signing for anyone under any circumstances!
- NO paying off debt without talking first with your lender. What sounds like a good idea may leave you short for important reserves needed at closing.
So that just about sums it up for the short list, more importantly SPEAK WITH YOUR LENDER FIRST, (I’m the REALTOR, not the lender) before you do anything (even if it makes sense) during your short sale waiting game…or any home buying process.
If you’re interested in other quick video classes on real estate tips, your might want to view Understanding the Real Estate Contract, then again Home Buying in So Cal has some great info for first-timers. Real Estate Terms for an Upside Down Market is something you might find helpful along with Southern Cal Home Buying Inspection Video and a Check out my other videos on short sales and other topics just by clicking on the links.