Today’s housing market is changing rapidly and housing inventory is dropping. A lot of homeowners are taking advantage of low interest rates to refinance their mortgage or start renovations. Some homeowners are selling to move to less expensive areas, and they know the housing market is already shifting in their favor.
So if you’re shopping for a new home right now, you could be facing a competitive housing market. Housing inventory is dropping and interest rates are still low. The good news is that you can stay ahead of your competition in today’s housing market by following a few easy steps. This short article will help.
Start Shopping for Your Next Mortgage Now
Today’s Housing Market: Housing Inventory is Dropping
While mortgage rates are still low, a lot of homeowners are staying put and refinancing their mortgage. This means there are fewer houses for sale, not a lot of new homes getting built, and a lot of buyers out there shopping for the perfect home. Low housing inventory and a lot of buyers means a bidding war when a great house gets listed sale.
For those who have decided to pull up roots and move to less expensive areas, they already know it’s a seller’s market. So if your dream house is in a desirable location, be aware that you’re entering a seller’s market. If you’re wondering how to prepare for a bidding war, you’re already a few steps ahead. Here we go.
Step 1. Start Shopping for Your Home Mortgage
This might sound strange, but shopping for your mortgage first is one of the best ways you can be prepared. I know, house hunting is the fun part! But in today’s housing market, low inventory can make everything move faster. So fast that you might lose out on a great opportunity on your dream house. Especially if you’re scrambling to find a lender or find out if you qualify. If you’re spending your free time at open houses or checking Zillow, put that on pause and get your application started. A new home listing can go on the housing market and be sold to a qualified buyer before they even schedule an open house.
Shopping for your home mortgage is the smartest move you can make. Loan approvals take time. By connecting with an experienced mortgage broker, you can be assured that your loan approval is getting started. You can lock in low interest rates, pull together paperwork that will be required, and know exactly what you can afford.
The moment you find your dream house, you’ll be ready to make an offer. If you’re facing a bidding war, the home buyer who is approved and funded will always be preferred.
Step 2. Partner with a Great Realtor in Today’s Housing Market
Ask for referrals. Decide on a few areas where you want to live and narrow down the neighborhoods. Once you decide on the area, work with a realtor who is a known expert! Spend some time with your realtor to make sure they understand what you’re looking for, where you want to live and why.
A great realtor will know the area and the housing market which can protect you from over-paying or entering into a bad negotiation. They will know what is considered a fair price, a great offer, and when to walk away. Which helps in today’s housing market, especially if you’re feeling pressure or stress. They will be on the lookout for you. Often a great realtor will find the perfect home before it’s even listed. By working together in today’s housing market, you’ll have an advantage over other buyers who are spending free time going to open houses.
Step 3. Get Pre-Approved for Your Mortgage
A pre-approval sets you above other buyers. How? When you’re pre-approved it means that the lender has already fully approved your loan for a specific amount. This means there is absolutely no question when it comes to getting funded. It’s as close as you can get to having a finalized mortgage before you even make an offer. Getting pre-approved tells the seller that you’re fully qualified and approved for the amount when you make the offer. No surprises, no waiting on the lender.
In the meantime, ask your lender for a quick pre-qualification letter while your pre-approval is getting underway. In today’s housing market, if you wait until you find your dream home before getting in touch with a mortgage broker you probably won’t be able to make a competitive offer. Getting pre-approved is the final important step in the process.
WHAT’S NEXT: GO MAKE THOSE OFFERS
Working with an experienced mortgage broker makes all the difference in today’s housing market, especially with low housing inventory. If you’re shopping for your next home, take a moment and get started on your home loan first. Give us a call anytime. We can help answer any questions and help you get started.