Prospective buyers and sellers are being faced with one of the most competitive housing markets to date. Demand is at an all time high whereas supply is incredibly low. Older generations were able to get in early before the competition was steep, however, younger buyers who have yet to purchase their first homes are struggling to make their home buying dreams a reality.
AmeriSave Mortgage Corporation, one of the nation’s leading mortgage lenders, is here to share four tips on how to make home buying dreams come true in today’s competitive market.
Check and Strengthen Your Credit
Before you begin searching for homes, it’s important to understand how to get the best mortgage rate but to get the best rate, there’s something that many people overlook: their credit score. By checking your credit score in advance, you’ll have a better idea of what you may qualify for given how low or high it might be. A strong credit score will give you a competitive advantage to gaining the best mortgage rate possible but if you’re looking to strengthen your credit score, you can do this by lowering your overall debt to income ratio (DTI), double checking credit reports for inaccurate information, and making payments on time. Also, there are programs out there to strengthen your credit score so be sure to ask your mortgage broker about which programs are available to you.
Stick To Your Budget
To avoid overextending yourself financially, it’s important for buyers to understand their budget and stick to it. This will not only help them narrow down the choices of what they can and cannot afford, but it will also put them in a better position to avoid any future debt. Lastly, before buyers seal the deal, it’s highly recommended to opt into a home inspection to account for any repair costs that may push them outside of what they can afford, and if so, try to negotiate for the seller to take care of the repairs to be mindful of your costs..
Get Pre-Approved Early
Being pre-approved shows you’re a serious candidate to the mortgage lender and the seller. Typically taking about a week or two to process, being a pre-approved buyer not only has the ability to speed up the transaction, it also shows that you can be given a pre-qualification offer to a seller – positioning you as a reputable buyer to the seller, which is critical in a competitive market.
Be Willing to Negotiate
In a competitive market you must be willing to negotiate. When demand is high and supply is low, sellers naturally will increase the home’s listing price. So, understanding how to negotiate can help you stand out from the competition while still getting the best deal. Negotiating will require patience, organization, and an understanding and willingness to talk with the seller to streamline the process and leave both parties satisfied.
Despite the current housing market being competitive, there are ways to make your home buying dreams come true. Being prepared in advance can help young buyers show how serious they are and have an edge over the rest of the competition. By following these tips, younger home buyers can buy a house with confidence and ease.
AmeriSave Mortgage Corporation, NMLS ID #1168, Additional licensing information may be found at www.amerisave.com/licensing. Licensed in 49 states and DC. Not licensed in NY. Some people portrayed are professional models. Equal Housing Lender