In the majority of the country right now, it is a seller’s market. As people put their homes up for sale they have the rewarding experience of watching bidding wars jack up the price and sometimes can sell their homes for 10 percent above asking price. But while this is a great time for sellers, buyers are not having quite as much fun, especially those looking to purchase an entry-level home.
As just about everyone knows by now, inventory for homes is tight and as many buyers have experienced, just because they are ready to go out and purchase a home, that doesn’t mean they are going to be able to do so. However, for anyone who is serious about buying this spring season, The New York Times has some tips to maximize the chances of finding and purchasing the right home.
Getting preapproved for a mortgage is a great way to let a seller know you are serious about buying. This includes having a preapproval letter, rather than one saying you are prequalified. Preapproval carries much more weight ad and shows the lender has run a credit check, verified income, and has authorized a loan for a specific amount of money.
Other things that can help are putting down as large a deposit as possible, agreeing to requests to help reduce hassles for the seller, and having homes pre-inspected at your own cost in an effort to make an offer without a contingency clause.
One thing buyers do have going for them right now is mortgage rates are remaining low. The average rate for a 30-year fixed mortgage was 3.61 percent in early May.
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