Generally, most buyers are familiar with the Spring housing market. That time of year when the sellers that waited for the winter weather to change have finally gotten off the fence and listed their property. This time can create a rush for buyers to find, and close the property they want as quickly as possible. It is not enough to simply make an offer and hope for the best. If you really want to secure your dream home, you must to go above and beyond to make sure your offer is accepted. With Summer quickly approaching the time to get moving is now. Here are four tips to help you find your dream home in the next 90 days.
Make plans with your existing residence.Most buyers have no desire to carry two mortgages, understandably. Although some may think they can hold onto both properties, even if it is only for a little while, in reality you will need to sell your current property before you can buy your new one in order to better your chances of securing your dream house. Prior to house hunting you will need to figure out what you are going to do with your home before you move to the next step in the process. You can also chose to complete simultaneous transactions with your old and new homes. It is very common in the industry to see buyers work on simultaneous transactions as they go through the house hunting process. Buyers, sellers, real estate agents and attorneys can make the process of selling your existing home and buying a new one a smooth and painless transaction for you when you do decide to sell. The first step in buying is typically planning on selling. Talk to your real estate agent to get a good idea of an estimated sales price, run your numbers and go from there.
Get pre-approved.Nothing can happen on the buying side until you get pre-approved. On the surface this process may sound daunting, in reality, however, it is nothing more than a ten-minute conversation. The lender or the mortgage broker will run your credit, review your income, and discuss down payment options for once you decide to take that next step towards finding your future residence. From there they will calculate how much monthly payment you are qualified for and back into a loan amount. This is a crucial step in this process because without Pre-approval most real estate agents will not even discuss listing appointment options.
Do your homework.What do you see as a must-have for your new home? Is there a specific location you are looking at? Is your family growing or planning on growing and you think you’ll need an extra bedroom in the near future? Whatever you see as make or break for your home, you should have it in mind prior to beginning your house hunting process. Not only does a narrowed search make it easier to find what you really want, but it helps streamline the process for all parties involved. If you communicate that you have specifics things in mind to your realtor, it will give them the opportunity to devote their time to finding a listing that meets your requirements instead of bouncing around from listing to listing hoping they show you something you like. Additionally, looking at homes outside your price range or in outside markets wastes time and energy for you and your agent. There are plenty of websites you can use to research specific properties and markets. Also don’t be afraid to ask for help, your real estate agent is always there to assist you in your house search. But that is not to say that you shouldn’t take advantage of the resources available to do some homework on your own before you meet with them.
Lock for 45 days (or longer).Lastly, we recommend you take a longer rate lock when you decide on a home and move to the payment process. Recently we have seen Interest rates slowly creep up over the last 60 days. While rates are still at an historically low level, they are up from the all-time lows of just a few years ago. Every home-buyer wants the lowest possible rate they can get, but in order to position yourself best, you need to know the current market climate. Barring a sudden change, you can expect rates to continue to climb in the near future. All of this may not happen overnight, but the trend is pointing upward. Instead of playing the rate roulette game, you should lock in with a rate you are comfortable with for as long as possible. Most loan transactions take an average of just over 30 days, so we suggest you should consider taking a longer rate lock to avoid paying an extension fee. A longer rate lock not only makes financial sense but can give you peace of mind knowing your rate will not shoot up overnight.
We truly believe that if you work with your lender and provide them with everything needed, the house hunting and loan process will be smooth sailing. By starting this process now we hope to see you in your dream home in the next 90 days.