Underwritten Approved

We are toying with the idea of moving. We’re looking but, unfortunately, not agreeing on properties. Plus, our house isn’t on the market. Nor have we prepared it. There’s a lot that needs to be done. But, based on recent sales in the ‘hood, whoever moves in is going to do extensive remodeling regardless of the condition. The house across the street sold for a whopping $1,635,000 more than a year ago – 15 months to be exact. And the new owners have yet to move in. The house was really nice, but they gutted it anyway.

A house around the corner actually did need a total renovation inside. It sold for $1,200,000 before Christmas. Those owners have yet to move in, either.

So, basically, we feel that improvements we did would just be torn out. I’m not saying they wouldn’t increase the value of the property. It would show better, for sure. But we wouldn’t put in a $75,000 kitchen. No matter what. The buyers would probably change whatever we did, anyway. And, if we did do the kitchen, then we’d have to do the bathrooms and replace the parquet and refinish the rest of the floors, and paint, and put in new skylights and driveway and garage door and landscaping. I don’t see the sense in doing anything unless we did it all. I’m counting on selling to the 35-yr-old couple who demand everything be perfect. With our house, they are buying a desirable location and a very good floor plan.

Anyway, the market in Denver is hot, hot, hot. If we find somewhere to buy would we lose out on it if our offer was contingent on the sale of our existing house? If we put our house on the market, would it sell in one week or three months? In anticipation, I contacted our mortgage broker. Neil is awesome. We’ve done a number of loans/refinances with him and have always been very happy with both the products and his services.

Rather than getting pre-qualified or pre-approved, Neil is going to get us “underwritten approved”, which is better than either. And, as usual, we’re only looking for no cost products. The interest rates are always higher, but they will save us $3k-$4k in costs. We’ve never kept a loan long enough for the lower interest rate to save us more than the closing/appraisal/etc costs. If we do buy, any loan we get will be paid off quickly once we sell our existing house. If we can earn more investing the money somewhere, we will. But I’m betting we’ll be mortgage free in under five years.

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