We've heard the housing market has been very challenging recently, houses flying off the market in less than a week, sometimes even days. With homes selling for often over asking price, many homeowners are taking their opportunity to profit and sell their homes. This has caused the market to be very buyer-heavy, making purchasing one of the few homes very competitive. How can you get ahead of some of the competition? We're here to tell you "How To Get A Head Start On The Home Buying Process."
We've all been in this situation before; you look at new cars, campers, or homes without knowing your budget. This can often start you out on the wrong foot. If you inquire about a home that you're not positive is in your price range, it can frequently slip through your fingers because you weren't able to make an offer without a proper pre-qualification, or you toured a home out of your budget and wasted your time. The key here is coming into this very crucial step in life, prepared and informed. As one of our favorites in the Pacific Northwest, Russell Wilson once said, "The separation is in the preparation." It works for him, and it will help us get you the mortgage and home of your dreams. Being prepared and having your pre-qualification letter in hand gives you the freedom to make offers on the spot, giving less time to the competition and putting the seller into a situation where they may feel pressure to accept.
Having this pre-qualification letter can also save you time, effort, and heartache. We often see houses on Facebook, Zillow, or Realtor.com that are gorgeous and check all the boxes, and we can fall in love. We often think our budget is much bigger than it is, and we haven't filtered out homes outside our price range. Falling in love with this out-of-the-budget home can make finding one very difficult because you now have subconscious standards that you want the one you purchase to live up to.
Let's say you've found a home that is right at your pre-qualified amount, which is fantastic but don't make the decision quite yet because there are costs that come with owning a home that won't be handled with your monthly mortgage payments. These fees include wifi, utilities, and many more. If you can account for these monthly, you may be ready to purchase at your approved amount, and if not, you may need to adjust the figures in your search. More likely than not, realtors or previous owners will inform you of average monthly bills that can help you create or evaluate your plan. One of our main staples at P1FCU for helping our members is advising that they budget effectively and have an emergency fund to fall back on. If you compromise those to purchase a home, it can put you in a challenging financial position.
So, what can we do to help you get that new home or your first home? We have a fantastic team of mortgage personnel that are the best at what they do, and they love to develop lasting relationships with our members. With their help, we can get you started on the right path by doing one thing first and foremost, get pre-qualified before shopping for a new home! Visit p1fcu.org/mortgages to learn more!