Down Payment

During: Buying Process Overview: Pre-Showings: Down Payment

Down Payment is all about being ready for earnest money when you make an offer to buy. It is the fourth step in the Pre-Showings process.

pre-showings-down-payment

The Down Payment process is shown below.

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Complete the "Pre-Showings: Down Payment" checklist:

https://learntoberich.com/down-payment/

Mark this task as complete when done.

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Watch the recording of the live presentation of "How to Get Down Payment for Nomad" available on:

https://learntoberich.com/how-to-get-down-payment-for-nomad/

Mark this task as complete once you've watched it.

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Ask your Lender to give you estimates on how much your Down Payment and Closing Costs will be with the loan you plan to use and the home price you're likely to look for. Make adjustments if needed to your plan.

Mark this task as complete when done.

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Make sure that you know the source of your Down Payment and Closing Costs.

You will need at least the Earnest Money when you make your offer. You will need the Down Payment and Closing Costs for closing.

Discuss the timing with your Real Estate Broker and/or Lender if you have any concerns.

Mark this task complete when done.

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It is prudent to determine where you might get cash from if you need it to take care of unexpected expenses when buying a property as a Nomad or as a rental.

Take a moment to determine where your Cash Reserves are in cash you need money to maintain a property.

Mark this task complete once done.

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If you're doing a partnership, you will want to determine with your partners how much you will want to keep in Cash Reserves for the Partnership.

If you're not doing a Partnership, you can skip this step, but it may also be helpful for you to think about the sources of your Cash Reserves are as well.

Mark this task complete once you've determined how much Cash Reserves you should have with your Partnership.

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This step is highly unusual for Nomads, but... if you happen to be buying in the name of a new LLC and you've got a Master LLC, make sure you transfer money from your Master LLC to your Single Member LLC (SMLLC) for your Down Payment.

Mark this task complete once done or if you're not doing this.

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  1. You need to disclose if you have this when we make an offer, so plan for that in advance of making an offer
  2. You’ll need the down payment and source where the funds came from for most lenders, so plan ahead and communicate with your lender about it
  3. Legacy Nomads – Talk to your lender early and see what you might need to do if you plan to use/give a gift for a down payment

Once you’ve lined up your Down Payment, you can move on to being prepared for writing an offer by looking over a Mock Contract.

Improvements

The following are improvements I plan to make to this page based on some of my Standard Process Improvement Questions.

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IMPORTANT NOTE: This checklist is based on what I personally use with clients in Northern Colorado. Please rely on your local real estate agent for how it works in your local real estate market. This process will definitely vary in different States.

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