A few blogs ago, we discussed what a Buyer's Market is. Basically this means that buyers have an advantage over sellers because of a down market resulting in fewer buyers. Right now this means "qualified" buyers.
If you are in the market to buy right now or in the future, there are some strategies that you can do to set yourself apart from other buyers. Of course you want the best deal out there and so does everyone else. Therefore, you need to be proactive as a buyer.
One of the first things that you can do is to insure that you are a qualified buyer. Check your credit scores and make sure you have the highest scores possible. There are many things that you can do to improve your credit scores. Check out the Internet for some great companies that assist you in watching your credit scores.
If you are thinking about applying for a new loan, now is NOT the time to make any new purchases or open any accounts. Wait until you close on your new home to do these things. You certainly do not want to get to a closing and be unable to complete the transaction because of a credit score going below what you were a few weeks prior.
Only buy what you can afford. Most lenders are requiring 20% down payments. If your credit is good, you can sometimes get away with 10% down. The more you put down, the better the rates will be for you.
You also want to make sure that you choose only a reputable lender. In the wake of all of the bad lending that went on in the past, it is imperative that you check out the mortgage broker carefully. Also, make sure that the loan product that you are purchasing is one that you understand and works for you. Be wary of adjustable mortgages. When the rate increases after your low interest period, many people are unable to keep up with their payments.
Lastly, work with a strong buyer's agent. A buyer's agent works only with buyers and knows the market! They are savvy in negotiating and are working on YOUR behalf! If you find an agent with the designation of Accredited Buyer's Representative or ABR, you know that you are working with a REALTOR who has taken measures to be the best buyer's agent that they can.
It's a great time to buy? Are you ready?
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