Three Things You Need When Buying a Home in 2021
Buying a home has become even more desirable this past year due to the unforeseen pandemic and people having to spend so much time in their current living space. It is understandable for spaces to seem tight when every member of the family now resides and works in one shared space, which has helped feed this home buying movement. As for the housing market these days, Inventory is low, prices are high, but interest rates are exceptional; these play a key role in why the time is now to invest in your future as a homeowner. Here are three things to help you in your home buying process.
An A+ Mortgage Application
What constitutes an attractive application? A borrower that is wanting to qualify for those low interest rates will need four things: a decent down payment, reliable income, a moderate amount of debt and strong credit. Due to the economic uncertainty of today mortgage lenders have had to raise their standards, so having those items takes you one step closer to purchasing your new home. Also try to keep your debt-to-income ratio around 30% or lower. People with credit scores of 750 and above are also going to be ideal candidates for these lenders to consider. A way to boost your current score is by making current payments on time as well as paying down any considerable credit card debt and no new credit applications before you apply.
Keep Your List Small
With inventory low, keeping your options open and must haves small will help to increase the number of homes available to you. Items that you might have to compromise on are certain fixtures, finishes or building materials, but if you’re a family who needs four bedrooms then bedroom number would be a must have item. Another thing to consider when purchasing your new home is location. Due to the pandemic many companies have gone remote, which could help expand the area in which you want to buy in, in turn giving you a larger pool of homes to choose from.
With a limited number of homes available there is a strong probability that multiple offers will be put in on one home. One way to make sure your offer is the most attractive is to come in strong with your price, sometimes this can mean asking price or over asking price, but a good real estate agent who knows the area can help with that. Another item to help in your buyer competition is having as few contingencies as possible; the less the current homeowner must do, the happier they are and more likely to choose your offer. Also, if you can meet or come close to their preferred close date and include a preapproval letter for financing in your offer, they will have hard time saying no.
I hope this advice gives you a starting point for your home buying journey, and here at Embassy Homes we would love to help you find your dream home!