Get pre-qualified...then pre-approved!
Lots of buyers hear the terms “pre-qualified” and “pre-approved.” But do they know the difference? There is a big difference between the two. And although both actions are good to have, one has more weight than the other in preparation for buying property. Pre-qualifying is just the first step. Pre-qualification gives you an idea of the amount of a loan you'll likely qualify for. Pre-approval is a conditional commitment to actually grant you the mortgage.
While many buyers jump the gun and start looking at homes early out of excitement, it's best to seriously look for your new/next home AFTER you have been pre-approved! This will ensure you are looking in the appropriate price range you can afford. Speak to a loan officer before or at the same time you begin to speak with an agent. Sellers need to know you are a capable buyer and getting pre-approved is one of the best ways to do it.
Find a realtor you can trust.
Now, more than ever, expertise and experience matter, so hire a great agent with a well-established track record! In a highly competitive seller's market, having an agent that can write clean, strong, and competitive offers, can negotiate well on your behalf, and has a great reputation in the industry can be the key factor in winning the home of your dreams, as well as to ensuring a smooth and stress-free home buying experience. Your realtor will often be the first person you text when you wake up and the last person you text before you go to sleep. You want someone that you can trust and guide you regardless of if this is your first time or your tenth time buying property. Buying a home is often one of the largest purchases you will make, so trust your gut when working with an agent.
Be mentally prepared for the process.
Finding the right property or home is no easy feat and weighing out every pro and con can be tedious. We have seen many clients put their hearts on the line with an offer, only to have it completely ignored. That can be pretty disheartening after a while. In this market, clients may make three to six offers before they win one. Be prepared to hang in there! It is also important to consider things you cannot change once you sign the papers such as location, building management, and even the neighbors. If you are on the fence about purchasing a home, you may want to reconsider. Signing a purchasing contract is legally binding and backing out can sometimes require remedy. So, make it a 110% decision. Once you are committed, be prepared to move with expeditious intent.
It’s worth it in the end.
Putting yourself in the best possible position to buy a home is a long-term project and could take months or years depending on your savings, credit, and budget. But buying a home is a worthwhile goal and one of the most significant financial decisions you will ever make. It takes a lot of hard work, but once you have a place to call your own, you will see that that effort and planning was completely worthwhile.
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