You want to buy a home, but Pennsylvania’s current market is much more seller friendly than that for buyers. What strategy should you use to fulfill your goal without going broke?
Forbes provides tips for residential property buyers navigating a competitive market. Learn where to focus your time and energy when you struggle to get discounts or make deals with sellers.
Seek out under-budget properties
Work with your mortgage lender to determine how much home you may afford. Once done, focus on houses priced under that amount. That way, you give yourself room to outbid other interested buyers, and you may have several to fend off. Another reason to buy under budget is so you do not risk spending emergency savings or other set-aside funds to secure your dream home.
Get preapproved for a home loan
Before you resume your search for a new home, get preapproved for a mortgage. With home loan preapproval, you give sellers the reassurance that lenders approved you for financing, better ensuring you make good on offers you make.
Account for the time to borrow money
While creating a timeline for buying a home, account for how long it takes to borrow money if you need help making a down payment. If a friend or family member gives you money, you may need to submit a gift letter that proves you do not need to repay the amount. Lenders may want to investigate the source of gifted funds, to determine their validity and where the funds came from.
It may take more effort to become a happy homeowner when the market seems to work against you. The right insights help you sidestep frustration and setbacks.