Just as choosing the right Realtor to assist you in the homebuying process matters, so does choosing the right attorney. While any licensed attorney can represent you, some attorneys primarily practice real estate.  Some questions to ask any potential attorney:

1. How many real estate closings do you handle per year on average? If the answer is less than 10, you may want to find someone with more experience.  Many issues can arise in real estate transactions, so having an experienced attorney to help guide you through anything that may come up will save a lot of headaches and potential delays.

2. Do you have a paralegal or another attorney who can handle the deal if you are on vacation or incapacitated? Things are bound to come up during the 2 months you are under contract. Knowing your file will keep moving if someone is on vacation is key to closing on time.

There are many moving pieces in a real estate transaction. Make sure the people you hire to represent you can handle the work.  

With so few houses on the market in WNY, and so many buyers looking for their new homes, many houses sell fast, above asking, and with multiple offers.  Using an experienced Realtor who understands the contract is an important step to winning a bidding war.  Not only should your Realtor be able to fully explain all aspects of the contract, but they should also know how to make your offer more enticing to the sellers.  While I would never recommend skipping a home inspection by a NYS licensed home inspector, shortening the inspection contingency to 3 days versus 7 days is a great way to entice a seller to go with your offer.  During the inspection period, a buyer can cancel the contract without any repercussions like losing a deposit.   Therefore, shortening the time period a buyer can walk away from the contract is an enticement for a seller, especially in  a multiple offer situation.  This is just one of many options that are available to help win a multiple offer situation, especially if two offers are offering the same purchase price.  Make sure your Realtor is knowledgeable and able to give you every advantage in this extremely competitive market.   

During these uncertain times it is very important to be represented by an agent who not only understands the rapidly changing guidelines, but also has your safety as her first priority.  There are many ways to show a home remotely and virtually.  As Phase 2 begins in Western New York, more homes will be listed and market will heat back up. 

When representing a purchaser, Litwin Realty offers virtual showings when available for buyers via Zoom, Google Hangouts, or YouTube.  During live virtual showings, you are able to give direction to your agent who can open cupboards, check for squeaky floorboards, and communicate any other items that are not obvious through photos. 

When representing a seller, Litwin Realty offers many premier services that will enable buyers to fully visualize your property without ever setting foot inside.  This will limit the amount of traffic through your property as many buyers will be able to decide if they want to put in an offer based on the MLS listing.  From floor plans to video walk throughs, there are many premium tools that Litwin Realty includes for no added charge. 

If you have been waiting to start your search or list your property this year, now is the time to reach out to Litwin Realty to commence the process.

Are you interesting in purchasing rental property?  Did you know that the down payment financing requirements are different depending on which bank you use and whether you will be an owner occupied landlord? Banks usually require a twenty (20) to twenty five (25) percent down payment for non owner occupied properties and a minimum of five (5) percent of the purchase price as a down payment for rental properties an owner will also be occupying.  Some banks also require proof of "emergency funds" for a six month period.  This means the bank wants to know you have enough money to fund the property yourself in case you do not have any tenants or if something breaks that would require immediate repair in order to have continuous occupancy and rental income.  If you are considering purchasing a rental property in Western New York, be sure to call Litwin Realty to help guide you through planning your financing so you are ready to make an offer when the right property hits the market. 

What is underwriting?  Each bank has an underwriting department that will scrutinize your credit score, your employment history, the new home's appraisal, your bank accounts for the past 3 months, your last two W-2s, and other information about your finances.  When you are under contract for a home and you are applying for your loan, all of the documents you submit to the bank go to the underwriter assigned to your file.  As the underwriter reviews your documents, they sometimes ask for additional documents to clarify things or new documents based upon what you already submitted.  Many people get frustrated during the underwriting process as sometimes you can be asked for new documents numerous days in a row.   

When utilizing a bank to fund the purchase of your home, your current credit score is important, but so are your bank accounts.  Once you have been pre approved by a lender and you know what your budget is to purchase a home, you should also find out from your bank contact what your estimated closing costs will be.  The closing costs include a down payment, homeowner's insurance for one year, an appraisal fee, bank loan origination fees, prepaid taxes on the home, attorney's fees, and title insurance fees.  While the deposit paid once you are under contract to purchase a home can be credited toward the closing cost total, you should be aware that you will need to demonstrate to the bank during the underwriting process that you have access to these liquid funds in order to close and pay the closing costs.  Many clients accept gift funds or borrow from retirement funds in order to have enough liquid cash to pay closing costs.  Banks always ask for your last 3 months of bank statements. 

The easiest way to breeze though underwriting is to have enough liquid cash in your bank accounts prior to the three months of bank statements that the bank asks to see.  For example, if you are pre approved in January and you are estimated to need $5,000.00 to close on a home, you should try to have the liquid funds in your bank account over 3 months before you make an offer on a home in order to breeze through underwriting. 

If you accept gift funds within 3 months of underwriting, the person who gave you the funds will have to fill out a gift letter.  Gift letters generally state that a specific person gave you a specific amount of money on a specific date and they do not expect to be repaid.  Each bank wants the letter worded differently, so if you are in a situation where you need a gift letter, make sure your bank tells you exactly how to word the letter. 

If you need to take money out of retirement funds in order to close on your home, make sure you inquire as to the length of time this process takes and what sort of penalty you may have for borrowing from your retirement.  Try to be prepared so you aren't left with delays right before it is time to close.

Disclaimer: The information above is based upon typical banking processes in New York State and the information should not be used for anything other than general guidance.  If you have questions about your specific situation, please contact the bank you are working with or your Realtor or Attorney.

Many people dream of owning a home long before they have the opportunity to actually purchase a home.  Not only do people need to save money for a down payment on their new home, but they also need money for closing costs and some money left over for incidentals in case something breaks once they own the home.  It can take years of planning to get ready to own a home, yet many people leave the selection of their real estate agent as an afterthought. 

Purchasing a new home involves the negotiation of a contract and the negotiation of hard earned money in exchange for a large investment.  While it may seem easy to just call a local brokerage and get assigned to the agent who just happens to be on duty, why take the risk of trusting your hard earned money and dreams with someone who is an unknown? 

Not many attorneys with broker's licenses will personally act as your agent and negotiate your contract.  I limit the number of active clients I will represent so I can personally answer any questions you may have, show you a house within 48 hours of the new listing, and focus on negotiating so you can buy the house of your dreams in this hot market.  I am available via email, text, and phone to answer any questions you may have about the process or how I can best represent you in your new home search.