Whether it's your first home purchase or the next in a long line of residences, it pays huge dividends to be a well-prepared home buyer.
Today we'd like to suggest some great ways of putting yourself in a position to make the most of the great opportunities in today's extremely lively real estate market.
Accept that it's a competitive market - You'd naturally expect that home owners are quite competitive when it comes to selling. They are, after all, competing for your excellent offer on a home you just can't afford to miss out on. That's all very true, of course, but have you also considered that, with multiple offers a far more commonplace occurence these days, buyers are actually facing tough competition too! In fact, the world has become a little less competitive among sellers of late, as the overall inventory of available homes in the Albuquerque area continues to reduce, in spite of more sales and homes coming onto the market. Yes, it's a seller's market as well as a buyer's one right now, the very best of both worlds. Early recognition of the competitiveness in real estate right now will help you to get everything in order to be the best equipped buyer you can be.
Be financially astute - This is probably the single most important piece of advice we can give. Make sure your credit rating is as high as it can be, as this can widen the scope of homes you can afford, will save you money with better interest rates, or simply enable you to be even able to get approval for a home loan. A few months ago we wrote an entire blog on this subject and highly recommend you click here and read it. The overriding message is to just be sensible with your finances. Loaded credit cards, little or no savings, a brand new car loan, quitting your job or being late with payments are all very bad things for the would be mortgage applicant.
Get pre-approved for a home loan - With your finances in good order, you're in great shape to apply for a mortgage, even before you start to look for a home. Why would I do that?, you may ask. Well consider that sellers will always prefer a buyer who can demonstrate pre-approval for a home loan that fits the asking price. If you view a home and put in an offer without pre-approval, then you represent a gamble for that seller and, as there is a much greater likelihood of receiving other offers these days, put yourself in the buyer's shoes and ask which offer you'd take most seriously. The other key advantage is that you'll be able to define exactly what price you can afford, exponentially sharpening your home buying focus and giving you you true buying power. Click here to get the process under way.
Do your homework - Too many people start to look at homes without a really sharp definition of exactly what they want and can afford. If you've followed our advice to get pre-approved for a mortgage, you've made a great start. Next comes the all important business of creating a wish list of features you simply must have and those that are less important, but preferable. This greatly assists the ability of you and your realtor to identify homes to view that are a pretty exact fit. Do you really want to view 30 homes, when a handful of the best options in your price bracket should be enough to make an informed decision? Few people have that sort of time today and there's always the chance you'll have too much choice and, worse still, miss out on the homes that really suit you because you've wasted time deploying a scattergun approach.
Don't sit on the fence too long - The Albuquerque area real estate market is in super shape right now - for conclusive proof click here if you missed Tuesday's blog on current market conditions. What's equally as important is that borrowing continues to be cheap by any historical standard, but as we often say here it's only a matter of time before we see a gradual rise. Low inventory and multiple offers mean that home prices are likely to continue to rise too. We therefore have to ask what are you waiting for? It's hard to think when there has been a better overall climate to buy or sell a home, truly a perfect storm but, as we all know, no storm lasts forever...
Don't assume you can't own a house - If you applied for a home loan in recent years and didn't qualify, now might be a great time to reapply. With continuing low mortgage rates and other incentives like low downpayment home loans for qualified buyers, together with some easing in borrowing standards by lenders, what looked like a dead cert rejection a couple of years ago might suddenly be a far more viable proposition today. After all, who wants the certainty of ever increasing rental rates when you can lock in a monthly mortgage payment!
Partner with a first class realtor - No matter how experienced or inexperienced you may be at buying real estate, a professional realtor has tools and knowledge at his/her disposal that you simply cannot hope to have - day to day experience of the market place, top negotiating skills and the ability to deeply search the inventory of homes that match your means, needs and location requirements. At Everest Peak Realty we take personal pride in offering an unrivaled service to buyers. Contact us today and we'll sit down with you and forensically examine your needs and match them to the right homes for you to view. It's a streamlined and disciplined approach that gets results.