I’ve asked what all to expect when going thru the process of purchasing your first home. Supposedly there are 3 hurdles and I am past the first one. I’m not sure so about that. There may be 3 big hurdles but the in between time is a hurdle in itself.
What are these 3 hurdles?
- Hurdle 1 – Placing your offer and it being accepted
- Hurdle 2 – The inspection
- Hurdle 3 – The appraisal
One could argue that finding the right house is actually the first hurdle. This is the one that was the hardest and took the longest. For me at least. But once you find YOUR HOUSE, these are the 3 hurdles you will have to overcome to get YOUR KEYS.
So the first one is done for me. I put an offer on the house, there was minor negotiation and then acceptance. The house is pending and the seller can not accept any other offers at this time. I have to tell you as I was showing one of my co-workers I saw the status said Pending instead of Active and it made me a little frantic. When looking for houses, you only want to look for the ones whose status is Active. Otherwise you are just wasting your time. My first instinct was “No, how can that be? I put in an offer and they accepted.”. Then I realized it said Pending because of me. What a feeling?!
After your offer is accepted, your lender will start requesting all sorts of documents. Fortunately for me, I had already given him copies of my tax returns and W-2’s when I was pre-approved. However, there was still a lot of documents needed. They were easy enough to collect though. If any of you are considering to purchase a house be prepared to do this. I was asked to collect the following:
- 3 years tax returns along with W-2’s
- most recent month’s paystubs
- color copy of Driver’s License
- 2 month’s bank statement for all accounts – checking and savings
- to take a First Time Homebuyer Education Course online
- to give them my homeowner’s insurance information
- copy of front and back of cleared Earnest Deposit check along with updated bank statement
The list may seem daunting but it’s not as bad as it looks. If you keep good records, your tax returns, W-2’s and bank statements will all be easy. Your Driver’s License should also be easy as well as your homeowner’s insurance information. Well, unless you switch insurance companies. This may add a little to it but still not difficult. If you take it little by little, it will all get done and won’t be overwhelming.
That’s the first hurdle. Offer and begin paperwork with lender. Done.
Now I wait for the second hurdle – inspection. Mine is tomorrow morning and it can not come soon enough. I put my offer in Saturday. The offer was accepted Sunday. Monday I was a blabber mouth and told everyone I knew. Tuesday was about gathering the documents for the lender. Today, Wednesday, I don’t have anything to distract me from the inspection. I’m nervous. I’m excited. I’m eager to see if this house is in good form or if I’m going to have to walk away. Yes, that is a possibility. I’m hoping and crossing my fingers that I won’t have to. But you never know.
Time is, in the words of one of my dear friends, creeping my today. Hurry up already!