The majority of buyers purchase their homes using a mortgage. Thus, what do mortgage lenders want homebuyers to understand about the process of buying a home—particularly in today’s hot real estate market?
Realtor.com recently published an article outlining the key insights mortgage lenders want home buyers to understand if they plan to purchase a home in 2021, including the following:
Get pre-approved from a lending company. Because homes in today’s market sell so quickly, it’s critical to getting pre-approved for a mortgage. This is the first step in the homebuying process; that way, you’ll know what kind of budget you’re working with—and will be ready to submit an offer as soon as you find the right property.
Prepare for bidding wars. Bidding wars are the norm in markets across the country due to a lack of inventory—and while you can’t always avoid them, you can prepare for them. Before you make an offer, talk to your real estate agent to get on the same page in terms of how much the home is worth, how high you’re willing to go with your offer, and the terms you can offer that may be appealing to a seller beyond the price.
Don’t give up. Attempting to buy in a seller’s market can be a frustrating experience. But don’t let the challenges deter you—because those challenges may not be any better if you put off the buying process. (For example, prices may appear high right now, but homes are continuing to appreciate, and prices could easily be higher if you postpone your home search, or interest rates can rise and add to the cost.)