If you are currently living on rent but want to buy a house in future, you probably feel a little anxious about how things are moving. But take heart! There is a light at the end of the tunnel.
Plenty of younger people in the 18-44 year old category are planning to buy a home in the near future. Here are a few thing to look out for and a few obstacles you may need to overcome.
Below are some hurdles which you might bump into if you plan to buy your own home.
- Unattainable down payment thresholds
- Unabated high home prices
- Not enough homes at entry-level prices
- Hard lending requirement to qualify for your loan
- Conflicting information about mortgage prices
Seems daunting? Yes. But we are here to help.
Remember, if you understand the process and take advantage of a few tips, it will help in making up for insufficiencies in your application package. Here’s what we mean:
4 Tips to Outrank the Competition When Buying a Home
Here are four steps to not only get an advantage over the competition, but also to better prepare for the closing day.
1. Start Your Preparation Early
Most new buyers make the mistake of waiting until the last day when they enter the market. As a result, they caught off-guard and they aren’t fully prepared for what is ahead of them. To avoid this mistake, it is important to start your planning and preparation early. This will not only give you an advantage when you do make an offer, but will also help you get in your home quicker.
Getting prepared before you begin the search for your home will also help you better estimate how much money you need and what level of home you can afford. This way, you will narrow down your options at the early stage and be able to properly get your finances in order.
It is important to mention here that before meeting with a realtor, figure out your must-haves and have-nots, so you can communicate that clearly upfront. Whether you are a new buyer or an experienced one, do not miss the opportunity to prepare early.
2. Keep Your Offer Ready
Once you have decided to buy a home, make sure you do as much research as possible and figure out what suits your needs best. This can include but not limited to the location, house features, neighborhood or anything you can find without walking through the doors.
This way you can not only determine whether the house qualifies to your standard, but will also help you get some preliminary answers to your questions without interacting much with the seller. Keeping the process convenient for the seller will make you and your offer more appealing to them and help encourage them to be flexible with you.
The best way to do this is to have an offer ready for the seller, so you can pitch it right whenever you see a house that you know meets your criteria. Having an offer ready for negotiations can also assist in speeding up the process.
3. Negotiate Realistically
The feeling of owning a house is awesome! But in the midst of that excitement and anxiousness, it’s important to be realistic in your negotiations.
The simple rule is not chase your dream house without considering the costs. If you find a home you like, but it is not in your price range, do not get too invested. Remember, a better (and more realistic) one is most certainly out there.
Moreover, consider the added costs like maintenance costs, taxes and insurances fees. These need to include in your budget from the get-go. Make an offer that reflects the home’s value and features, but still fits within that price range.
4. Get Professional Help
Once you have decided on a home — one that you can grow in, meets your needs, and has favorable school and community options – then it’s time to engage with a team who can help get you in your home.
You will be needing an experienced realtor or agent who will negotiate on your behalf and is skilled at closing deals. This realtor will bring into the play all his/her previous knowledge and experience to educate you on your choice.
Having professional help in your buying process will keep you ahead of your buyer competition because you have the resources at your fingertips to make the right decision quickly.
Things You Must Consider When Buying Home
Buying a home is an overwhelming process, especially if you are a new buyer. To avoid any mistake, here are a few things you must know when buying a house.
- Set your limit before bidding as to how high you can go. If the price escalates beyond that amount, be prepared to walk away.
- Do not try to lowball your bid — you might alienate the seller. When it is time, make a serious offer.
- Do not get discouraged if you do not win the bid. Know that there always be another house waiting for you.
The Bottom Line
The housing market can look daunting when you first see it — especially when you are a new buyer. However, if you follow these tips, you will outsmart and outwork the competition and get your dream house. Stay flexible in what you need and what you expect throughout the process. This will make you more desirable to the seller and can open up more options on the market.
Ready to take your next step? Contact Total Lending Concepts today!