.
Several REALLY important concerns have been raised above.
First is that 30-day timeline if you weren't already pre-approved (and preferably, for next time, not just pre-qualified).
Did you make an offer with *both* financing and inspection contingencies? (I hope so.)
Question: Were you or were you not "pre-approved"? You seem to have said your weren't, but also mention a lender who did pre-approve you...??
TheBogleWay wrote: ↑Sun Aug 30, 2020 2:17 am
...I wasn't prepared to make an offer, wasn't pre-approved (again was casually looking)...
TheBogleWay wrote: ↑Sun Aug 30, 2020 2:17 am
...I'll likely not use the lender that pre approved me...
[I really do understand finding THE dream house, even if most people warn against ever "falling in love with a house". We had been looking for almost 4 years. There was always something that DH didn't like. Then one day, he said he "might" stop off at a particularly intriguing Open House en route to the office (yes, on a Sunday afternoon; he likes his work). Bottom line, he called me at the end of the Open House, he "loved the house", and when I asked, "So, what do you want to do?", he replied,
"Buy it!". They were taking "best offer" at 7pm that evening. At about 10pm, we got the call that the house was ours.
I had kept getting the pre-approval up-dated every 6 months or so, and it was an easy qualification anyway, so we had that pretty well covered, although the final approval wasn't yet a "done deal", of course.
Importantly, we both still absolutely LOVE the house, almost 20 years later. It was indeed "THE house of his dreams," and later that same day, I fell in love with it too!
So it can happen.]
OP: You have a very tight time schedule. What is the "Wednesday" deadline about, to get a lender? Is that your financing contingency deadline? We've usually had something like 7 days for financing, and about 10 for inspection, but that may differ elsewhere in the country.
I'll assume that the costs and your income do "work out", but DO double check that, and also double check ALL likely carrying costs (insurance, utilities, upkeep, routine maintenance plus the occasional biggie (e.g., new roof), plus there is almost always *something* that crops up no matter how good the inspection, and sometimes several thing later - or sooner - crop up. "It goes with the territory" of owning a house. That is a big house for your first, so try *very* hard not to underestimate the assorted cost.
Plan on a good size pot o' money for those extra things early on.
(That price may/may not be sky high, depending upon where you live. Where we are, a large and
nice 3-bedroom *condo* in a renovated walkup 3-family in a good neighborhood/school district can easily cost between $1m and 1.5m (which still astonishes us).
I would STRONGLY urge you to consider using a mortgage broker, given the timing, even though I've never recommended that before.
You probably want a reasonably low interest rate with LOW or NO closing costs (or roll them into the loan in this case) and NO or minimal/short-lived prepayment penalty. *After* you've closed and caught your breath, you'll have the time to search around to refinance for a lower rate if possible, which is mostly what matters if you'll be in the house long-term.
Even moderate closing costs will average out okay when considered for the number of years you live there. If you roll the closing costs into a loan that you might not keep long - if you later find a better rate - then you aren't actually paying all of the costs up front, which could be important in your situation. But just get a reasonable mortgage locked in asap, and yes, LOCK that rate if at all possible. With a jumbo, even small percentage fractions can add up, month after month...
And consider applying with TWO lenders, especially given the tight schedule, in case one has some sort of unexpected delay. This will add a bit to the closing costs, e.g., more than one application fee, more than one appraisal, and such. Just do it, to be safe -- so you "get" the house and importantly do NOT lose any of the earnest money! (This can also end up being helpful in terms of negotiating for a better rate prior to closing. We unexpectedly learned that when we checked with 3 lenders for this dream house, which we did so we would NOT risk the financing falling through, etc.).
Or lock with one lender and not the other.
We also did the purchase in 30 days, and that was part of the reason we worked with more than one lender. We could not risk having the financing fall through, etc. (The sellers were diplomats re-posted overseas on short notice, and they wanted the sale completed before they got on that plane.)
And get a good inspection; do NOT skimp here. That "price is too good" feeling you mention is a bit worrisome. IS there something "wrong"?
==>> If you can't change the 30 day deadline now, then USE the inspection contingency time frame. That's usually a good "extra fail safe" protection. YOU get to decide what "inspection problems" are "more than you want to deal with", etc., and not something(s) that you "only" want extra financial consideration for.
Yes, on Monday/tomorrow, *sell* whatever stocks will be needed for the full down payment
plus assorted expenses (including moving, but also any new furniture 'needs', although much can wait) or quickly needed fixes, expected or not. These can add up.
Just make sure that you don't incur unnecessary costs (e.g., no *short* term gains, only LONG term gains, and the lower the total of those now, the better).
Are you working with a real estate agent? Or a real estate attorney for the closing?
Ditto for all subsequent documents, given this is a first purchase (and also given the timing now).
And remember: The enemy of a good plan is trying for a perfect plan...
You want "a good plan" here.
I hope this all works out and you are as happy in your new home as we have been in ours.
RM
This signature is a placebo. You are in the control group.