Just Got an offer accepted for a 1m townhome in Bay Area yesterday I’m thinking about optimal immediate next steps. I have 10 days to remove finance + appraisal contingency. 1) are the next steps -> get a rate lock, shop around for lenders -> underwriting -> final approval -> final approval? 2) how exactly do I shop around for lenders? How much time do I have before fixing one? 3) At what point should I remove loan contingency and can say my funding is guaranteed? EDIT: I already have preapproval
Do you have a realtor? If so they should have already told you to get pre approved through a lender. I’m surprised the seller did not ask for one tbh. If it’s a new build, then yes just get a rate lock
Yes I got preapproved
Hey congrats. Do townhomes appreciate in value better than condos? I know condos don’t appreciate in Bay Area. So curious
No, a townhome is a condo.
They do appreciate, not as much as SFR ofc
Ask realtor to give some portion of his commission ( either cash or in the closing cost)
Too late for that. This should be done upfront right?
No. You have contingency also you are not in contract yet so realtor can easily accommodate your request
Ask your agent, this is what they are there for and will have a network of lenders and inspectors to help
Wow. A 1MM offer on a home and you haven’t secured funding? Jfc it’s 2006 again.
This lol. How do you put an offer down without preapproval? All this should’ve been taken care of before he started looking. Op get a realtor
I have pre approval.
Congratulations! Where in the bay area? 1M is quite rare nowadays
Fremont
How small is that house?
Next step is buyer’s remorse for next 1 year.
I’m sorry you bought a shitty house and have buyers remorse. I hope it is now gone.
>90% of homes in bay area are shitty.
You should’ve shopped around and finalized a lender already. Get the rate lock and make sure they can process everything to close on time. With rates going up I imagine they are not super busy.
So you don’t shop around lenders to get a better interest rate?
First step: pay the 3% today for earnest deposit. Your next step is to call lenders and lock in the lowest rate you get. Most lenders would be happy to give you a rate within a day. After that, just coast till closing. Pull out the money you need for the rest of the 17% and have that ready to go. Congrats and hope you enjoy the new house!
Thanks! Very helpful! So how many days do I need to lock in a rate? It has to go through underwriting as well right before approval?
Underwriting takes only 2-3 days to do. You have time, do not feel pressured to lock into anything immediately. You have 1 week to get a rate
Are you not pre approved?
I am