Buying a home is making the most expensive purchase of your life. You want the home that checks all of the boxes on your wish list, but finding this home is not easy in today’s housing market. We have assembled some tools and strategies to help you successfully navigate the house buying waters which can be rough.
1. Improve Your Credit Score and Eliminate Errors In Your Credit Report
A mortgage approval is largely dependent on your credit score. While other criteria is important, a low credit score can stop you before you get started. The best mortgage terms are available to applicants who have the high scores. Review your credit reports compiled by the three reporting agencies. Fix any errors and follow their advice on how to improve your score.
2. Make Sure You Have Enough Savings For The Down Payment
You may need a down payment as high as 20 percent to get the best interest rate. You may also be required to have enough additional savings equal to the first two months of your net income.
3. Obtain A Mortgage Pre-approval
A pre-approval will prove to real estate agents and sellers that you can get a mortgage. The pre-approval amount will also help you understand the homes that you can afford to buy.
4. Deal Directly With Home Builders
You may decide that the home you want is likely to be a new build. You may want to initiate a relationship with a home builder to either build a home for you, or help you find a home that is already built. When you know a builder, they can be more helpful than they might be for someone they don’t know.
5. Limit Your Requirements
Sellers in a competitive market can choose who buys the home, so limit your requests of the seller. This doesn’t mean that you should forego having a home inspection, but it does mean that you might want to make some of the suggested repairs yourself.
6. Be Flexible
Buying in a seller’ market means you will face a lot of competition. Sellers can afford to ignore picky buyers, and they will instead look for buyers who are more flexible. Let the seller set the closing date which is usually an important consideration.
Learn as much as you can about the entire home buying process so you will be prepared to participate effectively. An informed buyer is easier to work with, and you will also benefit from being knowledgeable. Researching home prices and neighborhoods will help you decide when you have found a good buy. Learn the selling prices of homes in the category you want to buy. You can find the selling price online, and this would be the best indicator of the value of the home.