Imagine you’ve had your eyes and heart on this girl for the longest time. Finally, you built up the guts to ask her out and she says yes. You’re blown away that she agreed so you take her out for dinner to a fancy restaurant and after enjoying the appetizers, entrée, wine and dessert, you realize you didn’t bring your wallet.
Coincidentally, your date didn’t bring her wallet either.
And there’s no ATM around too…
Even more awkward…
A number of situations play in your mind:
- You tell her to take a cab home (oops, you can’t, she doesn’t have money and neither do you).
- You call your parents to come pay for the tab.
- You call your parents to come pick her up as you go wash dishes for the restaurant.
- Your date can take a hint that you screwed up big time and she’s extremely embarrassed and unlikely to go out for dinner with you again.
- Somehow the day passes but because you made this unforgivable error, you lose your date to someone else.
This happens in real estate by the way.
Jack and his wife and child were renting a home and sharing it with his mom, dad and aunt and uncle. His sister Susan and her husband and child were renting another home. They were looking for an 8 bedroom home for under $900,000.
I worked with them to look at several homes and finally helped them find their dream home in Surrey that was 4000+ sq ft, built in 2012, great neighborhood, great floor plan and it was priced really well at $850,000 (where comparables were $900,000+.
We negotiated an accepted offer and were working on getting the financing.
They had gotten a mortgage pre-approval for around $900,000 but the problem was, it was subject to them receiving a down payment gift from their relatives which wasn’t going to come for another 6 months! Big problem! The seller wasn’t going to budge on the completion date.
What’s more, my clients didn’t even have money for the deposit which was $20,000 and to be paid upon subject removal.
RESULT: We couldn’t remove the subject to financing clause on their dream home and because it was priced really well, other buyers came in and bought the home. Clients were incredibly disappointed, stressed and thought they wasted a lot of time for nothing.
COSTLY Mistake: Not Making Sure You Have ALL Your Financing in Place BEFORE Looking for a Home!
RECOMMENDATION: Always make sure you have your financing in place before even considering buying a home. You don’t want to find out 6 months into your home search, after looking at dozens of homes, negotiating a stellar price for the home of your dreams, then realizing you can’t remove subjects because you can’t get financing.