Urban KC Living Real Estate Blog

Garrett and Lauren find their new home in the Northland

Garrett and Lauren called me looking for their first home and I was very excited for the opportunity to assist them! They knew they wanted to stop throwing thousands of dollars a year away in rent. Their original focus was on houses in Liberty. Like most buyers, they wanted to find a deal. So, we first viewed house foreclosures and short sales.

After searching a few foreclosed homes in Liberty, they decided the foreclosures we viewed needed too much work, even for the lower asking price. This was their first home purchase but they didn't want to spend all of their free time working on their new home. I don't blame them!

We moved our search to maintenance free foreclosures and short sale townhomes staying in line with the budget they were comfortable with. It took a couple of weeks but then the right townhome came on the market. Best of all, the seller had it priced right. They got a "deal" and it wasn't a foreclosure or short sale so the buying process went very smooth. It was move in ready and just like new!!

Garrett and Lauren get keys and get to move into their new home tomorrow. I am very excited for them!! Congratulations!!

 

 

Brent and Kristin go to work on their dream

Brent and Kristin were not first time home buyers. They both purchased properties before they met and wanted to create a home for themselves together, literally.

They knew they love older neighborhoods but didn't want to go the route a lot of people due in Brookside and Waldo. They wanted something that felt more unique to them. We searched some homes in Valentine and midtown but in the end, they knew they wanted to find the right home in Westside.

The obstacle was that they wanted to create their new home and put finishing touches on it. They did have a budget in mind and we stuck with it. They found the right home but it was pretty much gutted without even so much as a toilet hooked up. The buying process was a little more challenging for them since they had to go with a renovation loan which took some time to obtain approval on. However, after a few months, they got the keys to their new home. Their goal is to have it completed and moved into by the end of the year.

Congratulations Brent and Kristin. I can't wait to see pictures or be lucky enough to have a tour. You are going to have a beautiful home!!

Jerry found "the one" in Olathe

I want to congratulate Jerry on hanging in there and closing on the perfect Olathe home. When I first met Jerry and offered the opportunity to assist him in finding the right home, his wish list of "must haves" made me a little nervous. He knew he needed a garage long enough for his boat to fit in (this was a first for me), a backyard for entertaining and an open floor plan. He knew he wanted to be in Olathe so that did narrow the search down some.

Jerry got out there and drove neighborhoods and even knocked on peoples doors asking them if he could measure their garages. He called me and said he found a home that seemed great on the exterior so I made an appointment with the listing agent and we viewed it that day. When you know it is home, it is. With it listed only 5 days, we knew we had to move fast so we made an offer and the rest is history!

Jerry got the keys to his new home Friday. Enjoy that hot tub, Jerry!! I appreciate the opportunity to help you close on the perfect home. Congratulations!!

David finds his home at Wallstreet Towers

David had lived in Downtown Kansas City for a few years and knew he loved the area. Tired of throwing thousands of dollars a year away in rent, he decided he wanted to purchase a piece of the urban core and become a proud home owner.

The saying goes, "good things come to those who wait". David would probably tell you he agrees with that saying.

David first found a great loft at a great price at Riverbend. It happened to be a short sale. David waited 60 days for the sellers mortgage lien holder to approve the short sale contract he had with the seller but they didn't act quick enough. We had to move on and cancel his contract.

After a few months of thinking things over, David decided it was time to search again. He loved the feel of a loft offering exposed brick walls and wood ceilings. However, he decided it was time to look into the other type of living offered in Downtown Kansas City, a high rise condominium. After seeing all of the amenities Wallstreet Towers offered including a roof top pool, two garage parking spaces, storage, exercise room, theater and more, he decided he could see himself taking advantage of this relaxing living environment.

David was all smiles when he got the keys to his new home Friday. Congratulations!!!

Let's talk money for a minute. Lenders and you.

I wanted to take a minute and discuss the world of lenders today. It seems everyone is upset in one way or another with the mortgage business and economy. I am not going to touch on my views on the lending industry as a whole in this blog post but I do want to discuss the basics of obtaining a loan, especially if you are a first time home buyer.

Most of us know by now that to purchase a home you need to pay for one either by a full cash purchase or by obtaining financing. If you are obtaining financing, the first step to searching for a home is to obtain your preapproval letter, not prequalitification letter. In speaking with lenders and obtaining your preapproval letter, you will be able to act on a property when you find "the one" since you will be able to submit an offer with your preapproval letter. Most sellers won't look at an offer if you do not have the preapproval letter to submit with your offer. When you do find the right home, you want to be able to act on it that day by submitting an offer and not let another preapproved buyer come in with an offer while you are waiting to obtain your letter. Don't delay on this! I have seen too many buyers lose a home due to not having their preapproval letter, buying power, in hand.

Now let's talk about the difference between prequalification and preapproval. The term prequalified simply means that you have given information on an application to a lender that has not been verified by the lender. Preapproval means that you have submitted your application but the lender has also verified your pay-stubs, ran your credit, etc. Preapproval letters can have conditions on it such as "fully executed contract needed, subject to final underwriter approval, etc.". These conditions will be met later but the main thing is to be honest to your lender and provide all documentation requested. 

I have always expressed the importance of a preapproval letter over a prequalification letter to my buyer clients. You want to make sure that everything looks good to your lender in writing before putting down an earnest deposit on a home, paying for an inspection, etc.

My question, and what I have a hard time with this past month, is your lender needs to take the time to review all of your documentation you submit to them BEFORE issuing your preapproval letter. It is important you hire a lender to work for you that verifies your information BEFORE they issue you a preapproval letter. If they do not, you are not really preapproved, correct? Conditions of "buyer to present pay-stubs, etc" (anyting related to your financials) should NOT be listed as conditions on your preapproval letter.

I had four clients last month who used their lender of choice and not the ones I have on my preferred list. I am fine with this. But, guess what, those four clients did not close as scheduled last month due to their chosen lenders. We pushed the close dates to this month, thank goodness the seller agreed to extend the close date, but it looks like they might not close this month or this year for that matter due to their lenders issuing preapproval letters before checking out ALL of their documentation for the loan. Big fail on the lenders side of things. These buyers might not qualify for a loan due to their financials in one shape or another. A preapproval letter means preapproved! It shouldn't mean anything less. It is beyond frustrating for everyone involved, especially the buyer who doesn't have a place to live, for this to happen.

My word of advice, use a lender that can offer you financing when they say they can!!! Where do you find one? I have some I recommend or speak with your Accredited Buyers Representative. I realize it is hard opening up a phone book or browsing the web for the best rates and best lender. In the end, even if a lender offers you an 1/8 of a percent higher interest rate but the best customer service and one that can actually get you closed, it is worth it. Don't go cheap, go for the best. Afterall, interest rates are at an all time low. An 1/8 of a percent higher than another is still LOW!!!!