The low interest rates during the pandemic gave many people the chance to buy their first home. While home sales have declined a year into the health crisis, it’s mainly due to the low supply of homes in the market. But the demand still exists as people compete for any available, affordable homes in the market.
If you are one of those looking to buy a home right now, you should make all the necessary preparations to increase your chances of getting the home you’ve been aiming to buy for a long time. Here are some tips you can follow so you can get the property you want in the market.
The first thing to do is to prepare everything you need. You should already have a reliable home inspector who can inspect the home you want to buy on short notice. When you conduct the home inspection early, you can immediately decide whether you want to get the property or not. To avoid an inspection contingency on the offer, you can also consider conduction a pre-offer inspection of the property before making your offer for it.
Work with a Reliable Agent
You should also have a reliable real estate agent you can trust and work with. You should pick an agent who has the experience and a proven track record in real estate sales. The agent should also be proactive and is available anytime you need him.
In this situation, the agent should actively go through off-market listings on your behalf. A good agent will have an extensive network of contacts within the industry who can provide information about properties that have yet to enter the market. When you work with this type of agent, you will have a better opportunity of finding a home that you like.
Get a Pre-approved Loan
You can also work with a reputable mortgage broker who can help you with getting a pre-approved loan. To get a pre-approved loan, you should let the lender review your finances. This allows the lender to check if you are eligible for any loans they are offering. You can apply for the loan online, and the lender will evaluate your assets, income, and credit history. The lender will also consider your employment history.
The pre-approval letter normally contains the loan amount, purchase price, type of loan, down payment, interest rate, and the expiration of the preapproved loan. A pre-approved loan allows you to easily make an offer on a property you are interested in buying.
Make an Offer Immediately
The supply of affordable homes is limited, so you should work fast and make the offer as soon as you have everything ready. This means you should have the property inspected when it becomes available and make the offer if it passes the inspection.
If you have a preapproved loan, you’ll also have an advantage over other buyers who do not have a similar loan ready. It’s possible for the property to be sold within the same week it becomes available, especially if it’s affordable and has everything a homeowner is looking for in a home.
You should not discount the possibility of stiff competition in the market. Other homebuyers also make the same preparations as they look for homes that they can call their own. Despite the pandemic, homes typically receive multiple offers from different buyers. The low interest rates have encouraged people to buy properties so they can avoid renting in the future.
The situation has become more competitive as the vaccination drive has gone into full swing and more people are confident about leaving their homes to search for properties to buy. In this case, you may want to check with your agent about the escalation clause since you may need to use it in the future.
Prepare the Down Payment
Another thing you can use to increase your chances of getting the property you want is the down payment for the home. You should have the funds ready, and the more money you can pay as a down payment, the bigger your chances of succeeding in getting the home.
The down payment shows the seller that you are serious about buying the property. It also puts you in a better position in getting the property, especially if your offer is attractive to the seller. But you should also avoid pushing your finances to the limit to make an attractive offer. You also have to set aside some funds for home improvements in case you get the property.
The housing market has become competitive due to the low interest rates and low supply. This makes it essential for people to make the necessary preparations to finally buy their first homes.