The majority of buyers purchase their home using a mortgage. So, what do mortgage lenders want buyers to know about buying a home—particularly in today’s hot real estate market?
A recent article from realtor.com outlined the key insights mortgage lenders want home buyers to understand if they’re planning to buy a home in 2021, including:
- Get pre-approved from the get-go. Because homes are selling so quickly in today’s market, it’s important to make getting pre-approved for your mortgage the first step in the home buying process; that way, you know what type of budget you’re working with—and are ready to submit an offer as soon as you find the right property.
- Prepare for bidding wars. Thanks to a lack of inventory, bidding wars are the norm in markets across the country—and while you can’t necessarily avoid bidding wars, 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. Trying to buy in the midst of 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 seem high right now—but homes are continuing to appreciate, and prices could easily be higher if you delay your home search, or interest rates can increase and add to the cost as well.)