After months or maybe even YEARS of looking, there’s nothing more frustrating than missing out on the Cape Cod home of your dreams because you couldn’t act fast enough when the perfect home hit the market. Being ready means having all your ducks in a row so that you can make a solid offer immediately that stands a good chance of being accepted by the Seller. Here are some tips for making sure you are THAT kind of ready.
Get Pre-Approved.
If you plan to take out a mortgage to buy your home, you will need a pre-approval letter from a lending institution and it must be CURRENT. If the one you have is more than 60 days old, you should have your Lender issue you an updated letter immediately. An offer that has a mortgage contingency yet no pre-approval letter will not be considered complete by most Sellers. You do not want to lose a house to another buyer, just because you couldn’t get your pre-approval letter in time. It generally only takes minutes on the phone with your Lender, so don’t put it off until you find your home.
Plan for Downpayment Liquidity.
Ideally, whatever money you plan to use for your downpayment should already be in an easy-to-access account that is in YOUR name. If you will be receiving gift money to buy the house, be sure you tell your Lender that when you are getting pre-approved.
Know the Market.
You may have found the ideal house, but do you know what it is worth? No matter how much you love it, you don’t want to overpay. While you are waiting for the perfect home to come along, be sure to keep in touch with the market, which means knowing how much similar homes in similar neighborhoods are fetching. This will help you act quickly and put together a solid, realistic offer when the right home comes along.
Have a Good Buyer’s Agent.
Most buyers benefit from working with a conscientious, trusted, local real estate professional who is acting as their Buyer’s Agent. Your Buyer’s Agent will not only help you search for the ideal home, but can also help you with all the issues addressed above.
Get Your Home on the Market.
If you need to sell a home before buying one, you should get your home on the market to hopefully avoid the need for a Home Sale Contingency in your offer. Most Sellers do not like home sale contingencies and some will not even consider an offer that has one. If you are worried that your existing home will sell before you find a new home, you could make your acceptance of the Buyer’s offer contingent upon you finding a new home. Depending upon your financial circumstances, you might also consider a bridge loan to finance the new home. But be wary of over-extending yourself. Your home may not sell quickly (if at all) and it may not sell for as much as you had hoped. Consult your Lender and/or your Financial Advisor for guidance.
Most importantly, be sure the perfect home doesn’t escape you because you weren’t actively looking for it! Be sure your Buyer’s Agent has you registered for Daily Alerts so that you receive daily emails with all the new and updated listings. Happy House-Hunting!