If you’re in the market to buy a new home in Clinton Twp. or anywhere throughout Metro Detroit this Spring, you will find that housing inventory is lower than demand and mortgage rates are on the rise. This is what is called a seller’s market because there are more buyers looking for homes than there are people selling their homes.
Here is how you can prepare to shop for a home in this competitive housing market.
1. Get Your Finances in Order
When applying for a home loan, be prepared to provide documentation to your lender that conveys your financial situation accurately. You will need to show your lender that your your debt-to-income ratio (DTI) is favorable.
Pay down as much debt as you can and be sure to review your credit report. Your credit report is different than your credit score. A credit score is an overall value applied to your credit history whereas a credit report lists your financial history in detail. Be sure that there are no errors on your report and if there are, dispute them immediately before applying for a home loan.
You will need to prove to mortgage lenders that you are financially responsible and there is minimal chance of you defaulting on the loan. This will ensure that you are approved for a loan and at the best possible rate.
2. Be Ready to Make Decisions Quickly
With more buyers than sellers, you will have to move fast if you find a home that you want and that is in your budget. You may not have time to shop around for other homes or wait to see if the price will drop on a given home.
However, this does’t mean you should act too quickly and make poor decisions. Just be mindful of the competitive market. If you feel a home is right for you, you may not want to hold off too long and miss the opportunity.
3. Make Yourself Valuable to Seller
When you make an offer on a home in a seller’s market, more than likely there will be several other home buyers making an offer on that same property. Aside from simply having more cash up front, how else can you make yourself valuable to the seller?
Bring a pre-approval letter from your mortgage lender. From a sellers perspective, buyers that have not been approved, potentially may not even qualify when it is all said and done – regardless of how attractive their offer might seem.
Also, be flexible on details like closing dates. Your goal is to make everything run as smoothly as possible for the seller.
4. Hire an Experienced Realtor
It is crucial to have an experienced buyers agent in your corner regardless of what the housing market is doing. In a seller’s market, having an experienced real estate is even more important. You need an agent who can find the right home for you even when the housing inventory is low.
Also, an experienced real estate agent is another way to make yourself more valuable to the seller. They can negotiate and help represent you as a buyer in the most attractive way possible to the seller.
Ready to Buy a Home in 2018? Contact Clinton Twp. Mortgage Lender, Julie Krumholz
Are you ready to buy a home in Michigan this Spring? Don’t navigate the loan process alone in this competitive housing market! With over 30 years in the mortgage industry, Julie Krumholz has vast expertise to offer her clients.
Call the mortgage office in Clinton Twp., MI at: 586-382-5482.
