Preparing Your Finances For Buying a Home
"That’s a lot sooner than I expected," she said as we walked out of the open house towards my car. He nodded and I mentally went back over my notes about their priorities. We hadn’t seen that many homes so I wanted to ask a few gentle questions to make sure they were getting what they wanted before putting in an offer.
This wasn’t their first time buying a home. Their family had done it a couple times before, here in Silicon Valley and in a different state. But each time, there was a mad dash. "It was never clear when we needed the money," she intimated after taking a sip from her water bottle. She and her husband looked at each other with a knowing glance and he chimed in, "We lost a couple places because of liquidity before."
There are a lot of moving parts in buying real estate, but for the buyer, the lynchpin for the transaction — and the greatest source of stress — is getting money to the right place at the right time. I want to ensure that my clients have a transaction that’s as stress-free as possible, and part of that is reducing the uncertainty in the process.
Here are some of the tips I provide my clients on how to prepare their money for buying a home and they impact the strength of their purchase offers.
May.30.2007 [ Filed under: Mortgages, Home Buyers, Silicon Valley News ] Comment Here »
"How do we do this?" she asked looking at her Silicon Valley home and with a distant fondness. When they'd bought it, it was the right place for their needs at the time: economical, in a good school district, and cozy enough to be relatively low-maintenance. Theirs was, after all, a budding family. 
There was something about it. Maybe it was the bustling downtown area with its crowded restaurants and palatial arts center. Maybe it was the summertime shade of the wooded neighborhood just walking distance away. Maybe it was the knowledge that in a couple years they could send their kids to some of the best schools in Silicon Valley.
I am on a mission. He and his family don’t know it yet but I am going to find them that house. Not necessarily the palatial one they left behind, but one that — with a little elbow grease from their very capable patriarch — gives them that sense of pride and stability that he’s been lamenting the loss of since his move to Silicon Valley.
"It’s yours!" About ten seconds after hanging up with the selling agent, I couldn’t wait to deliver the news. This had been something he’d been waiting years for and today was the day. And after those two words, the only thing on the line was stunned silence! A combination of elation, shock and achievement. You could feel the excitement echoing through the airwaves but the quiet could have put out a candle.
Come on, admit it. We've all done it. There have been times when you've been tempted to throw money at the problem. Maybe you got tired of circling around for parking? Maybe you could have waited and mail-ordered that part for less — even after shipping — but went to pick it up at Fry's anyway? Maybe you paid a little extra to book that plane ticket one week instead of 21 days in advance? 
Arm wrestling. A zero-sum game where you have to beat your opponent in order to win. There are times when I need to take this approach to get the best deal for my clients. But in this case, there was a different opportunity.
It was the right neighborhood near one of Silicon Valley's up-and-coming downtown areas. I paced the angular stairwell looking carefully at the stained hardwood while my client measured out the living room. "It's good," he said, sizing up the empty canvas beside the fireplace. I smiled and made a left into the downstairs guest room.
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