Get a Head Start on the Spring Market

Be the “early bird” buyer who gets the home! With spring just weeks away, there’s no better time than now to start preparing to buy a home. You don’t want to be caught unprepared when the selling season is in full force.Be the “early bird” buyer who gets the home! With spring just weeks away, there’s no better time than now to start preparing to buy a home.  You don’t want to be caught unprepared when the selling season is in full force.Generally speaking, the largest amount of homes for sale is during the spring months, with the highest inventory towards the end of May. More homes, but more buyers to compete with!Here’s what you need to do now to make yourself a viable buyer:Get Your Finances in Order and Determine Your BudgetThis is the time to completely analyze your finances and collect any necessary documents.  Your lender will need to look over your W2′s or 1099′s, bank statements, proof of current income, copies of tax returns, and brokerage account statements.Don’t do anything now that could damage your credit score. Postpone making any big purchases like a car or rack up a slew of credit card debt. Owning a home also requires extra, and sometimes unexpected, costs such as utilities, maintenance, and repairs. Make sure you keep saving money and curtail your spending so you have enough for a down payment and closing costs.Go through your budget to determine what you can pay (and want to pay) per month toward your new home. Those two factors will determine your purchase price, NOT the other way around.Want to crunch the numbers? Check out my Hip Homeowner’s Guide to Calculating Payments and Mortgage Calculator. Did you know that a $10,0000 change in your purchase price only changes your monthly payment by about $40?As I say here at Dwell Residential, when it comes to mortgages, little hinges swing big doors. So focus more on your monthly budget and desired payments and less on the purchase price for right now.Get EducatedLike anything in life worth doing, it’s smart to be armed with knowledge. Start reading articles about the process of buying a home  – what do first, etc. Meet with several agents to see whom you trust most to guide you through the process.The online site Curbed recently asked Dwell Residential to weigh in on first-time homebuyers’ most frequently asked questions. See what your fellow homebuyers are asking and my answers here.Meet with Your Lender and Get Pre-Approved for a LoanA mortgage lender can get you up to speed on loan products, requirements such as credit scores, current interest rates and their future outlook. The better your financial picture, the better the rate and loan … it’s that simple.When talking to your lender, let them know that you are not interested in knowing how much you can get approved for, but instead you are interested in understanding what price range to be looking in based on the monthly payments you feel comfortable with.  Most people are approved for more than they want to spend every month, so be sure to understand the correlation between your price point and your monthly payment.After this process, your lender can now pre-approve you for a loan. This will tell you how much house you can afford, what your down payment requirements are (you can buy a home with as little as 3% down nowadays), and what your monthly mortgage payments could be as well as what to expect as far as additional funds needed for closing costs.You must get approved BEFORE you get too far into looking at homes. This way you can make sure you are looking at a price range in which you can afford the monthly payments. Plus, sellers like to work with buyers who are already pre-approved for a loan. It means you’re a serious buyer and are able to make a purchase.Determine Your Needs, Wants & Location What matters most to you? Walking to work? Well, then that helps determine your location. Do you love entertaining but don’t have space in your current place? Then make this a top priority. Really think hard about your day-to-day life and what you want in your home. It helps to make a list of your must-haves (i.e. three bedrooms or a master suite) and your deal breakers (i.e. no eat-in kitchen or no parking space).Next, really get to know the neighborhoods in which you are considering buying. Go there for your normal activities such as coffee with friends or grocery shopping. Try some local restaurants and see what it’s like there at night. You should even take your kids to the different playgrounds.Starting casually visiting open houses to get a sense of pricing for the space, location and features for homes. This will help educate you about the local market and how you much of your “wants and needs” is realistic within your budget. You can also go online to view different homes for sale to get a sense of what you like and don’t like in a home.Think of this as window shopping, but leave your wallet at home.  If you fall in love with a home while you are in this phase of the process, you could be making a mistake. You don’t have enough information to know all of your options and how to make the best decision just yet.  You will soon, though, don’t worry!All of this preparation will help make you more efficient, both in time and energy, when you’re looking more seriously at homes. You’ll be least likely to hesitate when it’s time to make an offer or make any rash decisions that you’ll regret.It’s the Final Countdown for Personal QuestionsBuying a home isn’t something you can jump into without some serious consideration for both your personal and financial life. It can be a life-changer and you want to make sure you’re ready. Hopefully, you are ready to move forward but here’s your chance to really ask yourself some important questions before you get swept up into the house hunting process and make your dreams a reality.Is your lifestyle is ready for homeownership. Do you plan to be in the area for at least another five years? Is your job stable and income consistent? Do you plan to marry or have children soon that may affect where you live?Let’s GoYou will be all set for the spring selling season if you take these steps to prepare. I am always here to help you in any way and answer any of your questions, so ask away! I love hearing from you!