Buying a home in Sunnyvale is not easy. There has never been more competition and other very qualified buyers. Prices are at historic highs and inventory at historic lows. Decisions must be made quickly and very often in a multiple offer situation if the Sunnyvale home buyer asks for a contingency for anything they will most likely not be the winning bid.
Making a non contingent bid on a Sunnyvale home is risky, especially if you need for the home to appraise because your down payment is only 20%. In fact, I do not recommend that anyone take that chance. Fortunately my latest Sunnyvale buyers did not have to make a non contingent offer to get the home they want, because they were in the position of only having 20% down at this point.
Being able to have an offer accepted with a loan contingency for a Sunnyvale home was lucky for them, because the mortgage broker almost derailed the sale.
My clients were pre approved with a mortgage broker from a well known and respected company. The husband had a resident alien visa and he and his wife were pre approved through the mortgage company for a jumbo loan with 20% down. The mortgage broker was going to use Chase.
My clients made an offer on a home in Sunnyvale that is on a fairly busy street and unlike many other Sunnyvale homes for sale was not listed under priced. They were the only Sunnyvale buyers making an offer and so they were able to ask for a loan and appraisal contingency and the sellers agreed.
The appraisal was fine, but the day the contingency should have been removed Chase said they did not qualify for the loan because resident aliens needed 30% down for a jumbo loan. This information should have been known by the mortgage broker, but it wasn't. I can not explain why.
Fortunately the sellers gave my Sunnyvale buyers an extension and the mortgage broker found another lender who would loan 80% on a jumbo loan and managed to close only 2 days late.
However, this could easily have gone the other way. The sellers could have not given an extension. The mortgage broker could have not found another loan. The mortgage broker could have found another lender but they may not have appraised the house for the offered price.
Bottom line this should not have happened. The mortgage broker should have known the rules. This could have cost my buyer the sale. I can not tell you how many times my Sunnyvale buyers said they should have used my favored lender.
I did not say I told you so. Not needed.
If you have any questions about buying or selling a home in Sunnyvale please feel free to contact me.
If you would like to search for homes for sale in Sunnyvale click here.
Marcy Moyer
CAL BRE 01191194
650-619-9285
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