3 Strategies You Need to Buy a House in 2021
With rising home prices, low real estate inventory and historically low interest rates, buying a home in 2021 may seem like a major undertaking. If you are looking to buy, you are not alone. According to a recent study from NerdWallet, 11% of Americans plan on buying a house in the next twelve months which means you are entering a competitive market. Accomplish all your home ownership goals by following these three strategies!
Assemble a Good Mortgage Application
Now is the best time to talk to a Loan Officer to get pre-approved. Pre-approval helps determine the loan amount that you will likely qualify for, so you are ready to start house-hunting. This is also a great time to see how the items on your future mortgage application stack up.
To take advantage of historically low rates, you will need a stable income, healthy down payment, healthy credit score and a modest amount of debt. While a 20% down payment is great, it is not necessary to buy a house. Your Loan Officer can cover various low down payment options that you might qualify for. If your credit score needs improvement, you can take steps now including paying bills on time and paying down some of your debt.
Be Flexible in Your Home Search
With so few houses listed on the market, it will be difficult to find the “perfect” home if you plan on being picky. Experts are predicting that the housing market will stay this way, so it is crucial to differentiate what you want versus what you really need. For example, you may not like those kitchen cabinets or living room carpet, but you really need a house with three bedrooms near your family’s school district. It is a compromise worth taking if home ownership if your top priority. Check out our handy checklist to aid you in your search!
Make a Competitive Offer
With more buyers and fewer house listings, it is crucial to make a confident and competitive offer once you find the right home. Your realtor has all the expertise you need to guide you along the way. You should also be willing to work with the seller as much as possible, including move-in dates or accepting a higher price within your budget. For more tips and strategies on how to make a competitive offer, check out one of our other blogs.
Are you ready to get started on your homebuying journey? Contact one of our experienced Loan Officers today!
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