Someone recently asked this question, so I thought it would be helpuful to put it out there for other First Time Home Buyers.
We'll look at a normal sale, not a short sale, because they
currently average 4 months after a contract is ratified, and are very
unpredictable. I have one client still waiting to settle after 9 months. Let's work backwards from a preferred move date July 1st.
-Â Mid-May is the ideal of when you need to have a house under a ratified contract to be settled and ready to move in by July 1st. A bank and title company need 30 to 45 days minimum to get all paperwork cleared, to settle from the day your contract is
ratified. (Ratified means that all parties are in agreement, have signed
and initialed everything and the contract has been delivered.) Preferably end of April in case there are any snafus
with repairs or issues to be cleared up with the title.
- You'll need at least one to two months to look at properties and pick one. If you are
picky, or in a low price range, this can take longer. That means you
need to start looking seriously at properties NOW.
Of course you need to get your lending lined up and find a Realtor
before all of this. A good Realtor has at least one lender that they
prefer to work with because they give good customer service and are
super easy to work with.
You'll want to have
your Realtor set you up with an auto search that will send you listings
to help you watch the market. I would recommend that you go ahead and
pick a Realtor now to start that working relationship. It's never too
soon to start that, plus they and their lender may also be able to give
you tips on things to work on in your credit between now and May to
help you get a better loan when you're ready to pull the trigger and write that contract.
RealtorÂ® in DC, MD and VA
Keller Williams McLean-Great Falls