Essential Tips for Home Buyers in The Current Housing Market
Navigating the home buying process at any time can be complex, but the way we’ve seen the market change since this time last year has been more than a little shocking. Homes are selling fast, and inventory is low in the current housing market. As people continue to work from home, and many are moving to the Western North Carolina area. We are excited about this growth, but it has fueled some significant changes in our real estate market.
Here are a few everyday situations and tips for new homebuyers to make the process go as smoothly as possible.
Preapproval and Budgets
The preapproval process is a critical part of the homebuying experience. Back in 2017, we took a closer look at preapprovals and what they do. While things have changed a little since that time, preapprovals are just as necessary, if not more, today.
With the housing market so tight in our area right now and other places around the country, we are finding a few homebuyers who are not using their preapproval as a guidepost for house hunting. When you get preapproved, that number should be your top consideration when putting in offers on homes. Even bidding the entire preapproved amount can lead to being overextended once you buy your home.
Stick with your preapproval when you’re considering an offer on a home.
Selling to Buy
We also know, with the market where it is right now, a lot of people are interested in selling their current home to buy another. In some cases, this could be a great way to cash out your equity and purchase something else. However, there are some pitfalls to avoid.
When you are selling to buy, the process often becomes “contingent.” Contingent means you are approved to buy a home contingent on the sale of your current home. Since the market is tight right now, we’re seeing many homebuyers putting the cart before the horse. They make an offer on their next home before receiving an offer on their current home, leading to substantial financing problems.
While we can sometimes make this work, we can never make any guarantees, leading to heartbreak or worse.
Act Fast
The challenge right now is the need to act fast. Homes are selling quickly, sometimes before they’re even officially on the market, and with sales prices over the asking price. If you want a house, it will be essential to be quick.
That’s precisely the reason to have all your ducks in a row before starting the process. Talk to an independent mortgage lender to get preapproved, so you know your budget and can shop smart.
Communicate
To accomplish all of this and get the house you want, whether you’re a first-time homebuyer or selling to buy in Asheville, the critical factor is communication. We encourage you to communicate regularly with your real estate agent and your independent mortgage lender. Any time there is a change in status, talk with your entire team. That way, we can work out the numbers to see if these alterations may be possible.
The more prepared you are in the current housing market, the better your home buying experience will be. Call Zachery Adam and GoPrime Mortgage today.
Do you want to know about the process to apply for a mortgage? GoPrime Mortgage in West Asheville is here to help. Call us today at 828-348-1907 –Zachery Adam at GoPrime Mortgage in West Asheville.
