Here are some very helpful tips for homebuyers in the market right now.
I hope your year has gotten off to a great start as it has here at Boykin Realty. Our market is still unbelievably hot as we have just over one month of available inventory. There are very few homes for sale compared to the number of buyers who are looking. That’s great news for sellers but bad news for buyers.
Our buyers are running into multiple-offer situations, and it’s driving them to extend their search, buy a house they don’t want because of time constraints, or just give up on buying altogether. Here are three strategies that we use to help our buyers get in the best possible position:
1. Get pre-approved. This isn’t as complicated of a process as you probably think it is. For most buyers, we can get you pre-approved within a couple of hours. You’ll be asked for a lot of different financial documents so that a lender can determine whether or not you qualify for a mortgage loan.
2. Running the numbers on monthly payments. Once you’re pre-approved, it’s time to figure out what you can afford and what you’re comfortable with from a monthly payment perspective. You may be in a position where you’re comfortable with your monthly payment, but there are also upfront costs to consider. You no longer need 20% for a down payment, either. Most of our buyers put down anywhere from 5% to 10%.
*Closing costs are important as well. These are the extra expenses you incur when buying a home. Paying for attorneys, surveys, title work, and more will amount to anywhere from $3,000 to $6,000 depending on the type of house you’re buying and with which lender you’re working. In total, this could add up to $36,000 in cash that you’ll need to buy a $300,000 home.
3. Know what you’re looking for. A lot of couples I sit down with have no idea what they want or need in their next home. After I ask about it, one spouse starts naming all these items while the other looks very confused. We want to make sure we’re all on the same page, so take some time to think about what you want in your home and what you need to have. It will make the process a lot simpler and quicker.
Some additional considerations you’ll need to make include whether you want your kids to stay in the same school district and whether you’re moving into a new or established neighborhood. Building a new home could take up to eight months. The more you plan ahead, the more enjoyable your process will be.
If you have any questions about buying a home in the Triangle or real estate in general, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.