May 17, 2010

Must You Give Personal Information to Buy Real Estate?

State Fair Antique Pin

Coughing Up Info Before The Real Estate Hunt

What do you have to divulge before you buy real estate?  The short version is “it depends”. 

The longer version comes after you decided what you’re thinking about budgeting for your real estate and how you’re going to pay for the real estate.

It really doesn’t matter if you’re a cash or a financing buyer, you have to provide proof for how you’re going to pay for the real estate you want to buy.  It doesn’t matter if it costs $100,000 or $1,000,000. 

The real estate market is not without woes and a good deal of bank involvement in many of the transactions.  By bank involvement I mean there is a chance that there is a bank or financial institution that makes the final decisions on the price and sale of the property if it’s a short sale or a foreclosure.   You, as a buyer, are going to have to send either a mortgage pre-approval or “proof of funds” along with any offer that you make on a home or condo.

If you’re financing your real estate purchase you should be talking to a local, reputable lender, not a “dot com” lender, that will gather your information and help you properly prepare for a mortgage and home ownership that is affordable for your budget. 

There’s more to buying and owning real estate than the purchase price.  It’s rather important to know exactly what you’re getting yourself into financially and to be able to afford the real estate, the expenses that come with it; taxes, insurance, repairs, etc.  Lenders help budget all of those fees into the transaction.  They want you to be a successful home owner also.

If you’re a cash buyer you simply need a few things – the cash and a letter from your banker, financial planner, a copy of a recent statement that reads that you have $xx,000 cash on hand available for the purchase of the real estate. Nobody needs to know all of your finances, about gold coins under your mattress or blood samples.

If you feel that you do not wanting to share some of the information needed to buy real estate you might not be shopping with the right real estate agent.  You might not be ready to buy or you may not have found the trust you were looking for in a real estate agent. 

Buying real estate is a huge financial decision and your finances have to be talked about and disclosed on some level.  If you build relationships with the right mortgage broker and real estate agent you shouldn’t have anxiety about getting from point A to point B and doing it the right way.

Posted in Mortgage
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