Hey everyone Caolan Hoff here with Berkshire Hathaway. I just wanted to make a quick, informational video for those of you that are in a lease or about to sign a lease and would be interested in purchasing a home after that lease is up. So I have a few clients that are or have leases that ending this coming summer and and speaking with them and seeing where they are in the process they're thinking that they would start that process about a month before that lease is up and after I spoke with them, they kind of recanted it. We're going to start that process a little sooner. So which is why we're here and making this video segment so just kind of word to the wise.
Going to go over a few things here, just kind of go over the pre-approval process, finding your home, and getting it under contract and the timelines for those periods and why waiting for the month before your lease is up is probably not your wisest decision. So, up front probably recommend getting or starting this process at least six months before your lease is up.
So the first thing you want to do is meet with your mortgage. Lender. If you don't have one, I would get with someone who can refer you to a trusted lender.
You can always talk to myself. I have plenty of referrals to match up with different personalities. So you want to talk to a mortgage lender.
They can pull your credit score, they'll get your income information. Find out what kind of assets and liabilities you have.
Assets being what different types of income you have, are bringing in liabilities are things that are costing you money, so, and are reporting to credit monthly. So those things are all factors that they take into account when they're funding you. Money for a home and all affect your your purchasing power, which is important when we go to find a home, right?
So depending how organized you are, what your work schedule's like, and how organized that lender is, that can be done in as early as or soon as a day could take a week, could take two weeks.
That depends on how the organization of both those people so moving on from that pre-approval process to finding your home.
So currently there's about three months of inventory in the Indianapolis market. So I advise all my clients that it's statistically. It's not likely that you're gonna end up under contract and closing on the first home that you walk through.
It's possible, but just not likely. So knowing that up front, this is a process and you're gonna end up walking through, likely, several homes and competing with other buyers that have been burned by other buyers with more competitive financing and that better purchasing power that they're coming to the table now with possibly more money to put down and things like that and better negotiating terms.
So clarifying all of those things up front, to put yourself ahead of the game and give yourself the best competitive advantage is very important.
In streamlining this process. So that's where your realtor or real estate agent and your lender and yourself very much need to work as a team, we're together to make sure that this works as a cohesive unit and streamline that process. But even finding that home could take, you know, you could find it that first day that you, that first home that you walk through or could be the back end of that three months of inventory, so that could be one of three months there. So once you do find that house and you do get it under contract, a lot of sellers we're finding are selling their homes and then extending that closing date to find something themselves to purchase.
So that's not uncommon now in this market to see an extended typically, that would be 30 days. That could be 45, 60, even a 90 day closing period.
So with that being said, getting your pre-approval set, finding that home, and then getting to closing, you could be looking between 2 to 5 or six months.
So that's why I said, I recommend starting that at least six months prior to the end of your lease because you just don't know how long this is gonna take.
And the sooner you get with a lender, and they collect all those documents and all that information, it's really just knowing where you are from a financial perspective. Knowing how much money you would need to put down, how much you can afford and things of that nature and just getting ahead of that, that ball you just don't want to be the eight ball in that situation when it comes to buying a house, so going back to giving yourself a competitive advantage against other buyers because there are plenty out there.
So you want to give yourself that advantage if possible or else you will get burned and like many others out there and you're gonna lose out on a few deals, which we want to minimize.
So that's all I have for you today. If you want to reach out to me, or are wanting more information on the topic. You can reach me at 317-652-7300 and we'll see you next time.
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