Table of Contents
- What Are Netting Escrows & How Does It Work?: The Best Guide - January 2, 2024
- The Secret About Prescriptive Easement: Top Guide 1 Must Know - December 4, 2023
- About Home Equity Loans In Texas And How Can One Obtain It - November 27, 2023
First-Time Home Buyers Tips
In this post, we will be talking to first-time home buyers or those who haven’t been in the home buying process in some time.
We will learn three different first-time home buyers tips for you to make sure you when planning to purchase a home in today’s housing market.
In a normal housing market, it would have been tough, however, right now in 2020, it is even tougher to get an offer accepted especially for first-time home buyers.
Without further adieu, let us jump right into the first-time home buyers tips.
Getting Pre-approved
When we are talking about pre-approval, we are not talking about a pre-qualification over the phone with your loan officer where they outline certain details of going over your credit or discuss your income.
We are talking about pre-approval where the lenders run your credit, you provide them with your W2s, pay stubs, tax returns, whatever it is to verify your income for the past two years along with your asset documentation.
Most of the time homebuyers get confused between pre-qualification and pre-approval.
Because of which you might think that you qualify for a certain amount according to the pre-qualification, however, it falls apart once you get the pre-approval.
A lot of times this happens due to income and the way it is calculated according to the underwriter’s perspective. So make sure that you are going through the full pre-approval process and provide the relevant documentation.
It might look like a lot of work and documentation, however, it may save you some time and grief in the end, especially when you get into a contract where you know that you are pre-approved.
Always Work With a Professional Realtor
Selecting the right realtor has the most significant effect on your home buying process.
Make sure you are working with a professional and experienced real estate agent who knows the area and has proof to back his experience.
The reason behind that is because it is a tough market with very low inventory, high buyer demands, with low-interest rates. This situation is favoring sellers in most cases.
If you are a buyer, a lot of times you are putting in multiple offers. You need to plan on how you write those offers to make sure that it gets accepted or at least gets looked at so that you can get a counteroffer.
Work with a professional realtor, they are going to be able to not only help determine where you should write that offer but also help you with the market data that either support the value that the home is listed at or tell you that the home is overpriced.
Your realtor should be in a position to give you an insight into every property that they are showing you.
Patience is Virtue
When you are planning to buy a new house, you are about to make a life-changing decision. You would always want to buy a home that you are comfortable in.
You don’t want to write offers to homes that you don’t intend to buy just because you are looking to buy something.
There could be times that the process may take a while or it may take time to find the close to perfect home that you always dreamt of.
In simple terms, you don’t want to put yourself in a position that you may have to regret later. In this seller’s market, you as a buyer may feel a bit pressured to accept the seller’s contingencies.
You need to make sure as a buyer that if it makes sense to accept the seller’s counter offers or just let it go and look at the next one.
So be patient, we don’t know what the future holds.
As long as the inventory stays low and buyer demand stays high, and interest rates remain low for the foreseeable future the housing market will move sideways as it is doing right now.
Once the inventory is higher than the demand, that is when you might want to make sure that you make offers. This will not only give you more options but also more negotiation power.
Conclusion
Since buying a home is a long term commitment, you need to make sure that you do it right.
Getting a pre-approval will help your realtor to find the best options for you. Make sure you don’t have to stress about your monthly payments.
In the current market, it may take a while to find the right house. All you need to do is take your time, be patient, and let your trusted realtor get those options for you.
Whether you are a first-time homebuyer or a real estate investor looking to buy a new home, Compare Closing LLC is here to provide you with the best options for your mortgage needs.
Call now and speak to our experts to get a pre-approval from one of our preferred lenders in minutes and close on your new home in no time.
My sister and her fiance are currently looking for a residential house, which is why they’re thinking of hiring the best real estate agent. Well, I also agree with you that they must get approved first since this will help them get a better chance in buying the property. It’s a good thing that you clarified the importance of shopping around first so they can compare rates and prices.
If I were to buy a house, I would make sure to hire the best real estate agent. Well, I also agree with you that she should apply for a mortgage and get pre-approved first. Thank you for clarifying here as well the importance of hiring an experienced agent too.
It’s good to know why a realtor would be really important when buying a house. The fact they can help me track down deals and houses in the area which I would otherwise miss is really helpful. It’s also great to hear that they are able to help you find out a houses’ value and help you determine if it’s a good deal or not. My sister is looking into buying a house soon and since she’s going to me for advice, I’ll be sure to pass on the things you said here to her.
From my point of view, people who are planning to buy a house must hire an excellent real estate agent that may help them locate the perfect home. It’s a good thing that you were able to suggest the importance of getting pre-approved too because this will help me have an edge. Aside from this, I also agree with you that it will be wiser to seek consultation with a known financial advisor.