Dear Kathe,
We are planning on buying a new home in 2016 and are waiting to see what comes on the market this spring. Is there anything we should be doing while we wait?
With such little inventory and so many buyers in the market, when a property comes on that you are interested in, you must be really ready to buy. Bidding wars will become commonplace this spring and if you want to win, you must be the strongest buyer the seller considers. What does this mean?
First and foremost, it means having your financing in order. Contact your mortgage broker today, before you start looking at homes. But do more than just run your salary and social security number by him. Ask him to start the approval process and trouble shoot in advance any issues he might see. Don’t make the mistake of assuming that just because you have a good job and pay your bills on time, getting a mortgage will be easy. Lenders have tightened up on their lending ratios – you may be surprised to find out that you have too much debt outstanding and need to pay off car loans or old student loans before you will be approved for a mortgage. Do that before you enter into a contract to buy a home.
What if you have a home to sell? Sit down with the mortgage broker and see if there is anyway that you can buy without selling. Home sales contingencies are rarely accepted by sellers and when they are, they are highly unlikely to work out. Putting a home sale contingency on a home just marks the home to the public as a “wanted” home making it more likely that your offer will drive in another offer from a buyer. Why do all the work so someone else can buy your dream home? Strategize to find a way to buy without selling, even if it means eating macaroni and cheese. Sound too risky to you? Then get your home on the market right away and be prepared to rent for a few months if the home you love isn’t on the market when you are ready to buy.
There are many strategies we can use to make you a strong buyer in our unusually strong seller’s market. Give me a call and we can put an action plan in place for you to be the winning buyer when your dream homes comes on the market!