2 More Steps Every Buyer Must Take in an Active Market
2 More Steps Every Buyer Must Take in an Active Market
In the last video blog, I talked about the importance of getting pre-approved to arm your Realtor with the tools he or she needs to help you purchase a new home in an active market. In this video blog, I want to expand on that topic and discuss a few important steps related to purchasing a home when you have a home to sell also.
Step 1 – Contact a Realtor Before It’s Too Late
It's important to contact a Realtor to look at your current house as soon as you start thinking about a new home purchase. A good listing agent will perform a market analysis on your current home, help you understand net proceeds from its sale, and put you in the best position to make an offer on a new home.
Step 2 – Make Adjustments Based on Market Analysis
The process of going through a market analysis will identify areas of improvement for your home that might be worth considering before listing it for sale. Some things are obvious and easy to improve like simple repairs and de-cluttering certain areas. Other items may emerge that will help increase the value of your home like a bathroom or kitchen renovation, deck replacement, etc. A good Realtor will help walk you through the market analysis and your current home condition and make recommendations for improvements to maximize value.
Step 3 – Understand Your Net Proceeds
When you sell your house, unfortunately you don't get to keep all of the sales price. There are many items that get deducted from your sale at closing and affect the bottom line dollars you get to keep. Things like Realtor fees, closing costs, and escrows will greatly impact the amount of proceeds you get from the sale of your home. And remember, you proceeds are also impacted by your final sales price and any existing loans that need to paid off at closing, so only use a range when identifying your funds available for the purchase of your next home.
Finally, these steps and the steps listed in my previous video blog really highlight the need to identify a good Realtor to help you sell your existing and purchase your next home. A good Realtor will help you understand your homes current value and how to maximize it, be smart with negotiations when it's time to buy and sell, and will help you achieve the greatest value exchange during the transactions. As always, I appreciate your referrals and am available to answer any questions about home financing you or your friends may have.
2 Steps Every Buyer Must Take in an Active Market
2 Steps Every Buyer Must Take in an Active Market
In todays active real estate marketplace, there are 2 big steps buyers need to take before shopping for a home. I see too many people skip these steps, only to miss out on their dream house. Make sure you take these easy but crucial steps the next time you want to buy a new home.
Step 1 – Get pre-approved with a lender
Yes, this sounds simple, and for many of us it is. But, even if you know you have all the qualifications to get pre-approved, the process is still important. When you get pre-approved, your lender will look at 3 major areas: credit, income, and assets. This normally entails gathering tax returns, pays stubs, bank statements, investment paperwork, etc. A lot of times, just gathering this information can cause a considerable delay in financing which is one of the reasons to start this process early.
Credit is the biggest issue when getting pre-approved. There are a lot of factors that contribute to your credit score. Credit scores will not only determine whether or not you get approved, but will also determine what your rate and terms will be. When you go through the pre-approval process with a good lender, you will know what your credit score is at the onset; and what you can do to improve and protect that score throughout the home buying process. It's never too early to check your credit.
Step 2 – Arm your Realtor
When a Realtor is engaged by you to find your next home, you want to make sure he or she has all the information possible to focus your search and make an offer. A pre-approval letter backed by a reputable lender is critical when making an offer, especially in an active, competitive marketplace.
A good lender will only provide a pre-approval letter after careful study of your application information and supporting documentation. By having both your application and supporting documentation reviewed prior to an offer being made, surprises and delays are more likely to be avoided. And, your Realtor is able to make a strong case for your offer in an active market.
As always, I appreciate your referrals and am available to answer any questions about home financing you or your friends may have.
In todays active real estate marketplace, there are 2 big steps buyers need to take before shopping for a home. I see too many people skip these steps, only to miss out on their dream house. Make sure you take these easy but crucial steps the next time you want to buy a new home.
Step 1 – Get pre-approved with a lender
Yes, this sounds simple, and for many of us it is. But, even if you know you have all the qualifications to get pre-approved, the process is still important. When you get pre-approved, your lender will look at 3 major areas: credit, income, and assets. This normally entails gathering tax returns, pays stubs, bank statements, investment paperwork, etc. A lot of times, just gathering this information can cause a considerable delay in financing which is one of the reasons to start this process early.
Credit is the biggest issue when getting pre-approved. There are a lot of factors that contribute to your credit score. Credit scores will not only determine whether or not you get approved, but will also determine what your rate and terms will be. When you go through the pre-approval process with a good lender, you will know what your credit score is at the onset; and what you can do to improve and protect that score throughout the home buying process. It's never too early to check your credit.
Step 2 – Arm your Realtor
When a Realtor is engaged by you to find your next home, you want to make sure he or she has all the information possible to focus your search and make an offer. A pre-approval letter backed by a reputable lender is critical when making an offer, especially in an active, competitive marketplace.
A good lender will only provide a pre-approval letter after careful study of your application information and supporting documentation. By having both your application and supporting documentation reviewed prior to an offer being made, surprises and delays are more likely to be avoided. And, your Realtor is able to make a strong case for your offer in an active market.
As always, I appreciate your referrals and am available to answer any questions about home financing you or your friends may have.
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