27 Nov How to prepare yourself in this market to be a buyer come January 1st
How to prepare yourself in this market to be a buyer come January 1st
We know that many buyers will be coming into the real estate market after the holidays are over. With interest rates at 2.25 percent for FHA/VA and 2.5 percent for conventional the ability to get more house for your money has never been better. But with todays inventory of homes being down a third of the 2019 levels…what do I do?
Minnesota real estate is currently competitive in many areas and price ranges. But not all. So, if you are planning on starting to look January 1st here are the steps you can take now to prepare.
First, to be a real estate buyer you must get pre-approved. I suggest by a highly rated loan officer who is a loan broker. I loan broker provides you with more options than just say Wells Fargo does. Since they have about 50 banks and mortgages companies to pick from. They can then find the best rate and program for your credit score, job background and credit load. Also, make sure you have open communication and feel comfortable and trust this person. They will determine how much of a loan you will qualify for. They can then provide you with a good faith estimate that will give you a total
payment and cash outlay needed for a purchase price you pick. Even though you may qualify for more be sure you feel comfortable with the payment. If this is your first home, it would be helpful to also talk to your account about the tax benefits of writing off the mortgage interest to determine what your “net” mortgage payment is.
Second, once you have determined the price range you would like to buy in. Then it is time to pick the area or location you would like to live in. This can be by school district or drive time to work. Or simply an area you a fond of.
Third, decide want features of the home is important. Split these into “must haves” like minimum number of bedrooms and baths and then create a list of “it would be like to haves” like maybe a fenced backyard or fireplace.
Fourth, it is time to have your real estate agent create a daily house search for you so you can begin to get an idea of the real estate market. This includes how fast homes are selling in the areas you want and if they are going over asking price. And if so by how much.
Once you have completed all those things then you are prepared to be a real estate buyer. But the
process is complex, and I suggest you rely on an agent with years of experience to provide you with the wealth of information you will need to make sound decisions. You are a team.
Look for more articles and videos in the future on different aspects of Minnesota real estate and our state of Minnesota.
Real estate is a wonderful investment!