HOW TO PREPARE FOR HOMEOWNERSHIP IN 2021
"Failing to prepare is preparing to fail...". Truer words have never been spoken when you consider purchasing a home in today's market. With unprecedented competition making the buying process a marathon of racing to same-day showings for a chance at presenting an offer, aggressively competing with other buyers, & still finding out that sometimes - you simply have to go back to the drawing board because even with everything & more out on the table, it simply wasn't enough.
Today, we wanted to educate our peeps on the importance of the following points so, hopefully, you can avoid learning the hard way that preparing yourself for the home buying process is key. The fact is, we are in a strong seller's market. Sellers typically look for 3 things when comparing offers. 1) Net profit. 2) Which offer demonstrates the most financially stable, able, & willingness to complete the purchase of the home. 3) Convenience & accommodation of specific needs. You won't find a group of Realtors that will fight harder for you - but having the right story to tell sellers of your eligibility makes our goal achievable and consequently, these are all pretty standard financial best practices.
1. Pay Down Debt: Your debt to income ratio drives how much house you can qualify to purchase. Lending requirements shift regularly but typically the lower your debt to income, the better your financing options will be. Paying down things like credit cards, car loans, & student loan debt can significantly help your overall situation. If your looking for where to start, reading a financial planning memoir or hiring a financial advisor can work wonders in helping you achieve your goal.
2. Save Up: There are 100% financing options available out there. They are wonderful. Even still, you will need funds for things such as an earnest money deposit, inspections, & appraisal. Additionally, if you want to avoid adding dollars (sometimes hundreds) to your monthly payment for primary mortgage insurance, you will need to have a down payment. The more money you have to put down on your home, the more money you will save in your monthly payment.
3. Get Pre-Approved: Internet stalking your dream house without being pre-approved first is a one-way street to a broken heart. In-person touring is like writing a check for it..... we higggghhhhlllyyy discourage it. In this market, if you ask to look at homes without a fully complete preapproval you may hear a word that is not typical of us - no. The reason being - it really sucks to disappoint you & 1) we (your Realtors) don't know your financial qualifications until a lender tells us what's available to you. 2) you can't offer on a home in this market without being pre-approved.
