Now that it is the home buying season, the market will soon be flooded with buyers. In some markets that are doing really well since the housing bust, home buying will be a stiff competition. And, even though home prices are improving, you can still get a great deal and a very low mortgage rate. So, now that there will be multiple bids on one home, you need to be able to stand out from the rest of the buyers. Therefore, we have some home buying lessons that will help.
Home buying lessons:
Predict the future
Predict what the future might hold by planning ahead at least by four months. Look at your credit history and scores to make sure it is accurate. This will help you avoid taking on more debt than necessary.
Set your price
Decide what you can afford so you don’t end up looking at homes you can’t afford. This will save a lot of time. Do a little homework by going to open houses and see how the negotiations are going. You don’t want to have the mindset that you can put in a bid for 85% of the asking price if others are putting in bids at 95%.
Cash is always king
The old saying cash is king is so true when it comes to buying a home. The more cash you have access to, they more desirable you are to home sellers. If you can put 20% down, you instantly look like a stable buyer.
Preapproval is necessary
Getting prequalified for a mortgage will help give you an idea of exactly what you can afford. This will also help you compete with cash buyers. You will be a stronger buyer when you can handover a prequalified letter with your offer.
If you have fallen in love with your dream home and there are multiple offers on it, try writing a letter to the owners telling them why you want their house so badly. Often, many sellers are still attached to their home even though they are selling it. So, when you write them a letter, it shows you are investing love and appreciation for the home along with your offer.
Be flexible with closing
You will be a more desirable buyer if you can be flexible with the closing timeline. Ask when they would like to close and try your best to match it.