Do These 4 Things To Prepare For Purchasing A Home In 2022
Do These 4 Things To Prepare
For Purchasing A Home In 2022!
If you want to purchase a home in 2022, you will need to be prepared and act quickly. The inventory of homes for sale is still at record lows, and many buyers have lost out on homes that they wanted to purchase before having their bid accepted. To position yourself ahead of the other buyers in the market, you will need to save as much as possible and do your research before placing an offer. Keep these four points in mind if you want to purchase a home this upcoming year.
ONE - Polish Your Credit | By increasing your credit score, you will be able to secure a lower interest rate on your home mortgage loan. Easy things to do include paying your bills on time and keeping your credit utilization low. If you are diligent, you can boost your score by at least a few points. Credit scores are one of the top things that lenders consider. The median score for 2020 buyers was 786 according to the Federal Reserve Bank of New York. Conversely, if you have no credit, you will need a cosigner with a decent score to procure a mortgage.
TWO - Lock-Down Payment Status | Most traditional mortgages require 20% down payment. The good news is that your VA home loan benefit requires no down payment. However, consider saving anyway because today’s market is seeing homes going for more than the listing price and appraisal value. You may need to contribute cash to win the bid. When receiving multiple offers, sellers look for potential buyers that will be able to complete the transaction with minimal hold ups.
THREE - Be Ready | In our current market, homes are selling very fast, most in less than 25 days in our local Hampton Roads, Virginia region. In the U.S., the average home was on the market for 17 days throughout November, according to the National Association of REALTORS®. You should select a REALTOR®, have your mortgage pre-approval, do your research, and be ready to visit homes quickly once they hit the market. You should be prepared to extend a strong offer almost immediately.
FOUR - Resist Overpaying | You’re ready, everything is in place, but acting fast does not mean overpaying. Curb the desire to submit an offer on a home that you know is overpriced. Compare home prices from the previous year in your area. If the same type of home is listed for significantly more, you are better off waiting for the next property to come on the market. Additionally, don’t be afraid to make an offer that you are comfortable with and see if the seller will negotiate with you. Your REALTOR® is always your best advisor.
If you are buying or selling a home in Hampton Roads, Southeastern Virginia, or Northeastern North Carolina, we can connect you with an experienced Military Relocation Specialist that can assist you through the process.