Now is a great time to buy a home. Interest rates are low and there are more houses coming on the market. The housing market is still moving very fast in spite of the Coronavirus, so as a buyer, you need to be ready to make an offer when you see the home you want.
Here are 5 things you need to do so that you are ready to buy your next home.
1. Talk to a lender and get pre-approved. Getting pre-approved will let you and your REALTOR® know what homes you can afford. While we still have low-interest rates, you can afford more of a home. As interest rates rise (and they are rising), you can afford less of a home. 1 point (1%) can make a difference in what you can afford by as much as $100,000. Try to lock in a good rate right now. That will give you a few weeks to find the home you want without worrying about the rates going up.
There are all types of great loans out there. In this area, we do a lot of VA loans and right now the rates are excellent. You can also get great conventional loans with as little as 5% down. Of course, rates are always better the higher your credit score is, that is why you need to talk to a lender first.
You do not want to be spending anything out of the ordinary once you start looking for a home. Nor do you want the money that you had in your mattress to suddenly show up in your account. Money needs to be in your accounts at least 30 days prior to using it to buy a house. Talk with your lender about this.
2. Find a REALTOR® that knows the market and the area that you are interested in living in. REALTORS® can help you with information on homes, neighborhoods and the home buying process. Their negotiating skills, knowledge of services you will need and familiarity with the area can be invaluable in the home buying process.
Be honest with your REALTOR®. Let them know what you are looking for in a house, in a neighborhood, and in a loan payment. You may qualify for more than you want to spend on a home. Let your REALTOR® know so they get you to the right house. REALTORS® know or can find out a lot of things about neighborhoods that you will want to know. They also have access to local disclosures and can help you get your kids into the school district that you want.
3. Start looking for your next home. It always helps to know what features you must have and what features you would be nice to have. Share this with your REALTOR®. REALTORS® look at houses every day, where you may only be able to go once a week or only on weekends. They may see the perfect house for you while they are looking at houses and right now houses are moving fast enough that you may want to set up a special showing with your REALTOR®. Also, send your REALTOR® houses you see online that you like. Even if you can’t go see it immediately, they can help with this process.
4. Write an offer. Once you find the right house, you and your REALTOR® can determine the approximate value of the home and write an offer. This is where your REALTOR’S® negotiating skills come in. The best offer is an offer that is written well, has all the right documentation, and has a reasonable chance of getting accepted.
Once you have an accepted offer, the fun begins. Work with your REALTOR® to be sure you comply with all the timelines that the lender, homeowner, and contract require. They will help you get any required inspections as well as any additional inspections you may want. They can help you stay on top of and understand all the paperwork that is coming your way.
5. Now you are ready to close the sale and move into your home. Be sure to get insurance in place, get the utilities in your name, and keep your identification handy since you will need it when you meet with the escrow company to sign documents. Usually, the lender will send the paperwork for the loan to the escrow officer, where you will sign the paperwork and in a few days the home will be yours. Be sure to have your furniture delivered a day or two after closing, just in case the lender takes extra time.
Over the next few weeks, we can not predict the housing market due to the Coronavirus. Houses are still selling very quickly, buyers are still buying, and sellers are still listing their homes for sale. A the end of February we had 326 houses on the market. As of March 20th, we only have 313 houses on the market. In February 124 homes closed, and 61 have already closed by the middle of March with 260 pending, so it still appears to be a very active market.
If you would like more in-depth information about your local market, talk with your local residential REALTOR ®. They will be happy to help you get your home ready. Make sure that they have the REALTOR® trademark next to their name to ensure that you are working with the best of the best.
BIO
Joan Wilson is an active REALTOR® with Long Realty in Sierra Vista and Cochise County. She is a member of the Huachuca 50 board, past President of Women’s Council of REALTORS®, and current President of the Southeast Arizona Association of REALTORS®.
