We’re experiencing half of the typical housing inventory
which means competition for buyers can be very tough. Entering the market with even the slightest
edge could mean you will be moving
into your new home this summer instead of the next person. I have a few tips that will help anyone
looking to buy a new home this year.
"I'm new to the Real Estate Market"
1.
You will need cash reserves to purchase your
next home. Be prepared to pay for
inspections, appraisals, repairs, earnest money deposit, mortgage insurance,
home insurance, real estate tax, liens, short sale fees and/or closing costs.
2.
Unless you are planning on paying for your next
home with cash, you will need to be pre-approved by a mortgage lender. The lender will make sure your credit score
is high enough to obtain a loan and they will make sure you earn enough to pay
the loan back. A simple loan pre-approval
will take 30 minutes to an hour and can be done over the phone or online.
3.
Get in touch with your local Realtor! If you know a real estate broker then let
them know you are planning on purchasing a home soon. They will steer you in the right direction and
help you reach your goals. Consider your
Realtor the one-stop-shop for all your real estate needs. They will set you up with a lender, help you search
for homes, fill out contracts and make sure deadlines are met. In today’s market, you need someone on your
side who is working full time to achieve your wants and needs.
"How do I choose a Mortgage Lender?"
Now you know how to get started in the real estate
market -- You have an adequate amount of
money saved up and are interviewing mortgage lenders to find out how much home you can afford. When trying to find the right
mortgage lender, it comes down to who can get you the loan you need with the
best terms. Mortgage brokers (do not
have money to lend) will shop around to achieve your needs whereas going
directly to a lender (has money to lend) may limit your mortgage options. You should always shop around to find the
best mortgage package for your needs. If
you know what type of loan you will be applying for (Conventional, FHA, VA,
USDA) then you should consider a lender who is very familiar with that type of
loan. Each loan will carry its own set
of requirements.
"How do I choose a Realtor?"
At this point, you should either know which Realtor you are
working with or you should be meeting with a few different ones to find out who
will work best with you.
Some general
requirements for your Realtor should be:
1.
Your Realtor will streamline the search
process to help you find exactly what you want.
Your search criteria could turn up hundreds of homes. Don’t waste your time filtering through each
one. Let your Realtor work for you!
2.
Your Realtor needs to understand the contracts
that will legally bind you to a property.
There are a number of different contracts that your
Realtor must be familiar with to ensure you don’t miss out on your next home.
There are Realtors out there who
will fill out the wrong contract, disregard important aspects in the contract, miss deadlines and ultimately cost
you your new home.
3.
Make sure your Realtor communicates well with
you. If you have a lot of questions then
find a Realtor who takes the time to help you understand each step for purchasing a new home.
4.
You should feel comfortable with your Realtor
enough that you can trust them to help you achieve your goals.
The market is becoming more and more competitive as home values are slowly rising. Use these tips to help you gain an edge in the market!
