BUYERS: Be Prepared for this Market
The home buying process can be extremely confusing and stressful, but buying in a seller’s market is a whole different ball game. It is very important that you prepare before diving into buying a home in this insane market. Why should you prepare? There are many reasons, but the most important one is to avoid stress and frustration. The more you prepare and understand about home-buying, the smoother and more pleasant your experience will be. Let’s go over some ways you can prepare to buy a home.
Save Your Money. Let’s be honest and state the obvious… you won’t be able to buy a home if you don’t have the money to do so! The first thing you should do is make sure you have enough money in your savings to cover the things you will have to pay for upfront when buying a home. I won’t go into depth here, but you can expect to pay earnest money, inspection and appraisal fees, a down payment, and closing costs. Don’t forget about post-moving expenses as well.
Secure Financing. Next, you’ll need to find a reputable lender and apply for a mortgage loan. This is when you will find out how much the bank will lend you to purchase a home. You will need to get a pre-approval or proof of funds letter from this lender. This will need to be submitted with any offer you submit. Little secret: Offers without pre-approval or proof of funds letters rarely get accepted!
Know The Market. It is important to understand the market and what to expect. Let me explain this market in very simple terms…buying in this market is similar to the bachelor on night one… except there is only one rose to hand out. There are more people who are in the market to buy a home than there are homes for sale. Since you will be competing with multiple other buyers, it is important to come in with your highest and best offer.
Know How the Buying Process Works. It is important to know how the buying process works, all of the timelines to expect, and costs that are involved no matter what market we are in, but now it is more important than ever.
You don’t want to lose out on a home because you didn’t know how to submit a winning offer or because you waited until the perfect home hit the market before getting pre-approved for a mortgage. Meet with a local, full-time real estate expert to learn all of the ins and outs before making the dive into this insane market.