Buying a home can be an exciting time for most first-time homebuyers, but many find it to be an overwhelming process, as well. To help smooth the homebuying process, we recommend getting a mortgage pre-approval as the first step to take.
“One call could save you $1,500” – Freddie Mac research
When house-hunting, it is highly recommended that you seek pre-approval for the loan. The process of getting a mortgage pre-approval a thorough check and verification by a lender to assess your credit standing and evaluate that you can pay off the amount you’re seeking to buy the home. Lenders, however, have recently become stricter with lending requirements due to the uncertainty and volatility that the pandemic has brought to the market and economy.
Serious homebuyers know that getting a pre-approval from a mortgage lender is the first important step before they go out to the market and look for their dream homes. Pre-approval helps homebuyers determine the amount they could borrow to buy a home. Most sellers accept offers from homebuyers who have already been pre-approved by a mortgage lender.
First-time homebuyers who already have a mortgage pre-approval may find it frustrating if they find a property they can call “home” but never receive any word from a seller after sending an offer letter for the house. It’s no surprise if sellers receive a lot of house offer letters as the inventory of listed homes reaches an all-time low. In this situation, homebuyers should write a compelling house offer letter to possibly convince the seller to accept their offer. Home sellers might have varying factors when choosing a buyer who would occupy their once beloved home, but there are things homebuyers could do when writing an offer.
For most people, fulfilling the American dream of homeownership could be very complicated and stressful. This is because the homebuying process involves several entities, strict requirements and deadlines to meet. An escrow company is one of several entities that perform a critical role in ensuring a smooth homebuying transaction.
First-time homebuyers are often advised to shop for a mortgage lender to possibly get the most competitive offer they can comfortably repay. Homebuyers will encounter “PITI” or Principal, Interest, Taxes, and Insurance when they receive a loan estimate from several mortgage lenders.
Nothing can stop millennials from becoming a homeowner, including those who are actively improving their credit scores. Even industry experts are noticing that a significant percentage of millennials are flocking the housing market this year to fulfill their American dream of homeownership.
When taking out a mortgage, lenders prefer that homebuyers put a 20 percent down payment upfront. Although mortgage rates remain historically low, home prices are expected to increase this year. Homebuyers might find the 20 percent down payment overwhelming, not to mention the closing costs, which is another upfront payment they need to settle.
When you’re ready to buy your dream home, it’s often ideal to work with a buyer’s real estate agent. Often called “buyer’s agents,” they are among the industry’s top professionals who will assist you in making one of your life’s biggest purchases.