Over the years I have witnessed just about every avoidable misstep buyers could make whether it be their first home or a move up property.
#1: Listen to the advice of your realtor. This person is trained in the art of representation and negotiation and knows the market in which you are buying. The biggest mistake you could make here is not listening to the recommendations your realtor makes to you. If you are the kind of person who finds it difficult to put your trust into a person that is in place to help you, I recommend you put your faith in your hired professionals and trust them until they give a reason not to.
#2: Hiring the right lender. This is not the time to have your sister’s brother-in-law’s mother, who lives and does business in another state, represent you when getting a loan. It is imperative that the lender you hire knows and understands the market in which you are buying. Having an out of- area lender represent you could be catastrophic to the timeline of your escrow due to a lack of knowledge or local customs of the market you are buying. Your realtor will be able to recommend a local lender who understands the market trends as well as one who has a reputation to uphold in the community. In other words, they have skin in the game.
#3: The loan process: When I look back on an escrow that is closing late, I find out more times than not, that the lender did not receive items requested of the buyer in a timely manner. This will stall an escrow like there is no tomorrow. The lesson here is to make it a priority to provide your lender with the items requested as soon as you possibly can. If there is going to be a problem in escrow, this is where the root of the problem usually exists.
#4: Shop for Home Owners Insurance early: I make it a priority in escrows that we handle to ensure our buyers are on this from the very beginning of the escrow process. In times past this was something that could wait towards the end of the escrow. Now, lenders are requiring evidence of insurance within the first 2 weeks of opening escrow. Some insurance companies need to inspect the home before committing to issuing a policy so give this your attention immediately upon the opening of escrow.
#5: Return your escrow paperwork: The documentation you receive from the escrow company needs to be signed, completed, and returned as soon as possible after receipt. The escrow paperwork packages contains a few critical documents that are needed from you right away such as the name and contact information of your insurance agent and the manner in which you are electing to Vest or hold title to the property. Your loan process will come to a screeching halt if the escrow office is not able to respond to your lender when it is asked to provide this information.
If you follow my advice, I can predict that you will have a very smooth and pleasurable home buying experience.
If you would like me to refer you to one of my trusted advisors in the area of Real Estate Representation, don’t hesitate to reach out to me; otherwise, I highly recommend the following APRG members in the areas of Lending & Homeowners Insurance: Skyline Home Loans and Carlos Villalobos of SCV Insurance.
Next month, we will talk about the Top Five Mistakes to avoid when selling your Home First & foremost, listen to the people who represent you.
Provided by: Steve Corn – Newhall Escrow
24010 Lyons Avenue, Newhall, CA 91321
Office: 661-259-3450, Fax: 661-259-4063