Anyone who has not purchased a home before will be excited at the idea of owning their own property. Once home buyers start looking at homes, they expect they can make a purchase within a few months, if not sooner.
Unfortunately, the real estate market is not always kind to new buyers and they may find themselves still looking even six months to a year later. To avoid spending enormous amounts of time trapped in the buying process, here are four steps home buyers can take for a smarter purchase.
Many home buyers are slowed down by the process of saving for a down payment. But it is important to have a secure savings before applying for a mortgage. Lenders want to see someone who is prepared to put twenty percent down so they know they are serious amount making a purchase.
Twenty percent is a daunting number depending on how expensive of a house the buyer is wanting to buy. However, the good news is that there are ways to get help with a down payment.
There are thousands of down payment assistance programs, each with different guidelines. Some buyers will not meet the eligibility requirements for each program, but it is worth looking through them to find one that fits the buyer’s needs. These programs can help people save almost twenty thousand dollars depending on their need and the programs ability to help.
Home buyers who know when houses are being put on the market will be able to schedule showings before anyone else. If there are many home buyers competing for homes in a certain area it is vital to get in first and make an offer. A great way to do this is to get alerts directly from a multiple listing service.
By setting up notifications from multiple listing services, home buyers can review new homes as soon as they are posted. This way you can then schedule appointments for a walk-through before anyone else is able to get in there.
There are some properties that have been on the market for a long time – and with good reason. However, there are many foreclosed properties that do not get bought simply because no one wants to look at a foreclosed property.
Home buyers should pay close attention when looking at foreclosed properties because there can be serious problems with them. This all depends on how long the properties have been empty and how the past owner took care of them.
Yet, this can also be an unexplored treasure trove of homes that few people look at. Foreclosed houses typically sell for ten to fifteen percent below market value. Smart home buyers can find a foreclosed property that needs minimal care and attention and buy it for much less than it is worth.
The mortgage aspect of buying a house is what stops many people in their tracks. Even if they have managed to find a wonderful home at a great price point, they still need to secure a loan. In fact, many sellers will not entertain an offer if there is not a pre-approval attached.
Home buyers should go through the pre-approval process with their lender. The lender will review the finances of the buyer like they are approving them for a loan. They will even send it through to an underwriter who will do a preliminary review.
Home buyers who have their finances in order may be approved for three to four months for a specific amount. This pre-approval that can be taken to a seller to prove they are able to get a mortgage quickly.
Home buyers have to think ahead if they want to buy a home quickly. Other buyers will be competing to buy the same home so being on top of new listings is a must. To be successful, the buyer has to have a down payment secured as well as their pre-approval. Plus, it never hurts to look at homes that other people tend to ignore.