(Editors disclaimer: This is a guest post from a paid sponsor of #LifeofaMedStudent and thus has a financial relationship with the website.)
Six Steps to a Flawless Home Purchase – Part 3
- Be Proactive
Take responsibility for the deadlines you sign on your purchase agreement and ensure you don’t lose your earnest money. This is truly your responsibility and all you have to do is to be aware of your inspection, appraisal, financing and settlement deadlines. I find most home buyers rarely even know the deadlines in a purchase agreement even exist. It’s extremely seldom that we get any kind of communication from the client following up on these dates. This is typically because the Realtor rushed through the purchase agreement and did not bring it to your attention, but at the end of the day this is on you, it’s you who is risking your earnest money. You can do this simply by paying attention to the dates in your purchase agreement and set yourself reminders to follow up with your real estate and mortgage team before the dates are upon you and your money is lost.
Follow this advice and you have a 99 percent chance that your transaction will be a successful and enjoyable one!
The following success story is from one of our favorite physician clients, Dr. Peters, who orchestrated the perfect transaction.
Dr. Peters had built a conservative home in a great new neighborhood when he was new into practice. They had purposefully bought a smaller, less expensive home so they could focus on eliminating all debt, which he did over the next six or seven years. Several years after he had built his home, the house directly across the street from him was built and from the minute it was framed, it was his wife’s dream home. It was bigger, with nicer finishes, on a better lot and of course more expensive. It was what they wished they could have built when they built their home, but they felt it was out of reach until they had finished paying off their student loan debt.
Dr. Peters stuck to his plan and paid down all of his student debt. Shortly thereafter, as luck would have it, the owners of the house across the street, told them that they were going to sell their home.
Dr. Peters started researching lenders. He called a few doctor friends but nobody had particularly enjoyed the lenders they had worked with and he was unable to get a good referral. He went online and searched for “physician home loan” and came upon our site. He called me and we had a nice conversation discussing his situation. He had some unique factors and had made a few investments that had gone bad. Although he had paid off all of his debt, he hadn’t accumulated the savings that he would have liked for a down payment. I advised him a physician home loan without mortgage insurance was his best option because he needed a jumbo loan size with less than twenty percent down.
After our conversation, Dr. Peters continued his due diligence by visiting our website and reading all the testimonials. He knew two of the clients who’d given us testimonials. One was a doctor and the other was a member of Utah Medical Association Financial Services and coincidentally Dr. Peters’ financial planner. He called them both to ask them about their experience with us.
When we had our second phone conversation, Dr. Peters was certain that he was comfortable moving forward with us. We had a great relationship and trust because he really had done his due diligence and research upfront. I advised him, before you write your offer and become completely emotionally attached, allow me to gather all of your documents, complete your Credit and Income Approval and ensure you will qualify without any surprises. Dr. Peters was very prompt in getting me all the documents we needed and we submitted his file for Credit and Income Approval. Within twenty four hours, the file came back, underwriter approved.
He then was able to make a very strong offer to his neighbor, saying we’re completely qualified, already having been through underwriting, we have our down payment ready and we’re willing to make you an offer with no realtors involved and we’ll close in two weeks. Of course, the seller took the offer and Dr. Peters got a great price on the house.
We closed two weeks later and his wife finally got her dream home.
Seeing success stories like Dr. Peters is what it’s all about for us. I hope you will take these Six Steps to a Flawless Home Purchase to ensure that your loan process goes as smoothly and is as stress free as possible.
Josh Mettle is an industry leading author and mortgage lender, specializing in financing physicians, dentists, fellows, PhDs, and physician assistants. You can get more great physician real estate and mortgage advice at http://www.utahphysicianhomeloans.com/ or his book site: www.whyphysicianhomeloansfail.com. Josh is also a fourth generation real estate investor, and owns a number of rental homes, apartment units and mortgages. Josh is dedicated to helping physicians become more financially aware and able, download Josh’s latest tips and advice at www.physicianfinancialsuccess.com.
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