We’ve all noticed that the market is slowly making its way back to pre-recession norms, which means that more people are taking advantage of record low interest rates and entering into the market as first time buyers.
Also entering the market are those homeowners who were forced to short sell or foreclose when the market began to plunge. Unfortunately, many have been lead to believe that short sales and foreclosures prevent you from re-entering the market for several years until your credit is back on top.
That may have been the case several years ago when short sales and foreclosures were less common and signs of deeper financial struggles, but these days such transactions have become a commonplace way for homeowners to get out from underwater and don’t carry the same stigma as in the past. Former homeowners are now able to get back into the market in record time with a number of different loan options.
As always, the first step to getting back on the road to ownership is to find a lender who can provide you with the best service and loan terms and who can get you prequalified for a home loan. Of course, it’s also important at this time to calculate what you can comfortably spend on a monthly basis. Your lender will approve you for a certain amount, but that doesn’t mean that your personal budget will allow you to search for homes in that price range.
The Importance of a Realtor
If you aren’t sure where to begin looking for the right lender, a good Realtor would be able to recommend someone experienced and reliable, and such recommendations can be invaluable when coming from a trusted Realtor. The key to finding the right home is finding a Realtor whom you can fully trust with your transaction. Purchasing a home is often the biggest investment people make, so it’s important to develop an open and honest relationship on both sides. Openly share your needs and opinions with your Realtor, and make sure that he or she understands your financial situation, doesn’t push you to overspend, and is willing to negotiate the best deal for you. You should also look for a Realtor that has the experience and qualifications that are important to you; if you are looking strictly at short sales, you’d better choose a Realtor who has extensive experience buying short sales.
Clear Expectations
Fair expectations are a must – don’t expect your Realtor to be a saint who can find you the perfect home at an unbelievable price. Discuss what you’re looking for and what you can get in your price range. Determine whether you are looking for (and can afford) the perfect home, or if you’ll be looking for something that will need some improvements to fit your needs.
Make sure you are giving yourself and your Realtor the necessary time to find the right home. The current market is exceedingly competitive and requires patience, so it is not a sign from The Universe if you don’t get the house you want with the first or second offer you submit – it’s just the reality of the market.
Having clearly defined expectations and having the patience to find the place that is right for you will ensure that you are happy with your purchase for all the years you will live in the home. The home-buying process is short considering that you will be living with your purchase for an indefinite number of years, but it certainly pays off in the end.