Strategies for Homebuyers in a Seller’s Market
The housing market is still a seller’s market. Inventory is low and the competition is high. How can home buyers successfully navigate the housing market right now?
7 Tips for Homebuyers in a Seller’s Market
Here are several tips homebuyers can apply to strengthen their offers when buying a home.
Find a Mortgage Lender that Offers Pre-Approval
Some lenders can get you pre-qualified but not pre-approved for a home loan and there is a difference. Getting pre-qualified gives you a ballpark estimate of how much home loan you can afford.
Getting pre-approved gives you the exact amount of the maximum mortgage you can qualify for. Pre-approval is a lot more definitive than pre-qualification.
Get Pre-Approved Before Shopping for a Home
Before you start shopping for a home, get pre-approved and know exactly how much house you can afford! This will help you reasonably shop within your actual means. It will also help you shop more confidently since you know exactly what you can and cannot afford.
Find an Experienced Realtor
Having an experienced realtor on your team is essential for successfully navigating a seller’s housing market when inventory is low. Realtors have a pulse on the market and can help you fine-tune your offer to increase your chances of your offer getting accepted.
Provide Proof of Pre-Approval With Your Offer
When you place your offer, submit proof of pre-approval with your offer. This will demonstrate to the seller that you are ready to purchase a home and have been pre-approved by a mortgage lender.
Provide More Earnest Money
Earnest money is not required for a home offer, but it does demonstrate to the seller that you are serious about purchasing a home. While earnest money might seem like money lost to buyers, it is actually applied directly to the buyer’s down payment as soon as the seller accepts your offer.
Earnest money typically costs 1% to 3% of the amount of the mortgage. This amount can vary depending on the area.
Request Your Lender Pre-Underwrite Your Home Loan
If your mortgage lender has in-house underwriters, you can request to have your mortgage loan application pre-underwritten. This process takes more time than simply getting pre-approved, but it does allow you to act fast when you find the home you love and want to purchase. It also may be more appealing for a seller with a vacant home who wants to close as quickly as possible.
Be in touch with your seller’s unique needs as much as possible and work to adapt to them. If your seller needs more time to move, be okay with pushing the closing date further out. If the seller wants fewer seller concessions, pick up as many as you can. If your seller wants to close sooner rather than later, be as prepared as possible to move the closing date up.
Contact a Loan Specialist
Are you ready to get pre-approved? VeteransLoans.com offers conventional, FHA, and VA loan products. Our loan specialists can determine your eligibility and get you pre-approved for a home loan! Call 1 (888) 232-1428 to speak with a loan specialist today!