When should I start tackling my Spring home buying goals, and how?
If you’re planning on buying a home in the spring, the time to start is now. One of the biggest mistakes that homebuyers make is to wait until the last minute to start on their plan.
There are a lot of “wheels” that have to be set in motion. The earlier you start tackling your spring home buying goals, the more successful you will be. The timing and urgency make more sense when you understand the buying process more clearly.
The Homes by Ash Team will show you the way home this Spring!
So, What Do You Need to Know About the Home Buying Process?
The first thing to do is get acquainted with a qualified, experienced real estate agent as soon as you can, and not just a licensed agent, but a REALTOR® who is member of the National Association of REALTORS®, lives by a strict code of ethics, and has access to the MLS as well as other tools and resources that can help fill in the details of any information you may be lacking.
Home buying can be complex, and there are lots of options available to buyers. But, if you don’t know what your options are from the types of available property for sale, community or county buyer programs to help with financing, association restrictions, building considerations; just to name a few, you could start spinning your wheels. The “right” REALTOR® can provide additional insight, advise you of special concerns and financing restrictions, and help you power negotiate an offer to purchase a home of your choosing. Without the right guidance, you could miss out on a chance to buy the home you’ve always wanted.
When Should I Start Looking?
You should start casually looking at homes online right now as soon as you know you might be in the market. This way you’ll get a sense of how much homes are selling for, how quickly they move, and what type of homes and amenities you can expect in your comfort range.
But, using the ‘right’ home search technology to research homes in your preferred market area is just as important, if not more important than the timing of when you start that search. Why? Because not all online home shopping resources are made equal.
Having a relationship with a strong REALTOR® will put you in touch with the most accurate and powerful MLS data on the market in realtime. And, it’s a good way to avoid disappointment. Image you find a home you really like either through another online resource, newsprint, mailer or even a drive-by and you get all excited about the potential of this home only to find out it’s out of your price range or already pending the acceptance of another offer. And, with a fast-pace Twin Cities market, this is more common than not today.
Another common situation for the ‘casual’ home buyer; (one who sees something come across a social media feed or jumps around between other popular home shopping site like Zillow.com, Homes.com, or Trulia.com; just to name a few), is false expectations. A lot of 3rd party sites like this scrape information from other public resources and user input to put a picture together for the reader and prospective homebuyer.
Additionally, their frequency for updates is fewer and farther between or are only importing certain types of data; excluding vital information that could make the difference on whether or not the property would fit the financial boundaries or goals of the homebuyer. And, sure, an independent home seller or real estate professional could update information on the sites, but that’s usually through a claiming process that “sells the rights for maintenance” back to the agent so this is commonly avoided.
Even if a real estate agent caves to the giant box reselling resource, it doesn’t mean the information on this platform/site will be as accurate or timely as it would be from the professional MLS resource available only through a REALTOR®.
So, readers of these sites often end up having skewed expectations of time on market, sales prices, financing strategies, or property features and benefits vs. cost. Ultimately, a home buyer could spend needless hours of their limited time chasing the wrong dream only to be confronted with unnecessary disappointment.
What Should I Do to Prepare Financially?
When you apply for a mortgage, your current financial situation and financial history will be scrutinized. Buyer qualifications are paramount to an approved mortgage. There are specific things you can do right now to help make the mortgage qualification process easier. First, pay off as much debt as you can, but not necessarily all of it. Talking with an experienced mortgage loan officer can help you avoid mistakes in managing your credit and help you raise your credit score to a level that can open better borrowing power and options. For example, many believe paying off credit cards or closing them will help, but these actions could have a negative effect on credit! If you don’t have a trusted lender, Homes by Ash can help you find one.
Second, don’t change jobs right now. You can change jobs after the closing if you want, but for now stay put. Job changes make you look less stable in lenders’ eyes. Third, save as much money as you can for your down payment. Also, don’t forget about those closing costs which average between 2% and 4% of the home sale price for most Minnesota real estate transactions, so factor this into your savings plan.
Next, be sure to pay all your bills on time in the months leading up to your mortgage application. You don’t want any black marks on your credit report.
Finally, work out your budget. Calculate how much home you can reasonably afford. The Homes by Ash Team provides access to a helpful online mortgage calculator helps you calculate mortgage payments, including interest and all insurance costs; taking into consideration your income, and debts. Make sure you consider all of your monthly expenses and lifestyle. Access to this tool is free and provided on each listing shared to you from the custom MLS buyer reports the Homes by Ash Team puts together for you.
Don’t fall into the trap of thinking you should buy the most expensive house you can qualify for. Remember future life events like college costs, emergencies and job changes could hinder your financial liquidity. You can always upgrade your home later if you’re in a position to do so. It’s much better to feel comfortable about being able to pay your mortgage every month.
Don't Start Packing Yet - Get Pre-Approved
Whether you know your credit report in good condition or you’re not sure if it could use some work, getting preapproved by a reputable loan officer is the best way to gauge your buying power, so it should be your next step.
If your credit report is looking good, some loan officers will take an added extra step of submitting your file to their Underwriters right away. This means you can get credit-approved immediately so all you need to do is find that dream home with more confidence. Why more confident? -- Because being credit-approved makes your potential offer to purchase on a prospective home purchase much stronger in the eyes of a seller; especially where multiple offers are on the table.
Credit-approved offers are a signal to a seller your offer to purchase is most likely go through and close. And, since multiple offers are not uncommon in today’s Twin Cities real estate market, you need all the leverage you can have in your pocket at the time of an offer to purchase.
If you don’t know how to get pre-approved, consult with a real estate agent, such as Lisa Ash. Lisa Ash offers real estate services to homebuyers and sellers throughout Hennepin, Wright, Sherburne and Anoka counties and beyond, and her proven success and experience has put her in front of the best-of-the-best in real estate finance, so her insight can help put you on the right track.
What’s the Moral of the Story?
Working with a professional local REALTOR® puts you in position of a better chance of success with less stress then trying to navigate the process of finance, data research, negotiation, and closing on your own.
More About Lisa & The Homes by Ash Real Estate Team
Over time, Lisa has demonstrated her proficiency for home buying strategies by consistently ranking as a top three agent out of her office of 188 agents. She utilizes her talents to help homebuyers negotiate the best price possible on homes in the Twin Cities area. And, the majority of her clients come from past client referrals, which is indicative of her excellent customer service and success rates.
From the moment you meet Lisa Ash, you’ll understand why first-time homebuyers are particularly pleased. Her willingness to take the homebuyer through the entire home purchasing journey is a testament to her professional yet friendly nature.
If you feel you’re ready to buy a home in the spring, your first step should be to contact Lisa Ash today.
