For the first time since 1971, interest rates have fallen below 3%. So, it is no surprise that with interest rates at historic lows, many people are buying homes for the first time or trading up from their current home.
Here are our top 5 tips for buying a home in today's hot market:
Get preapproved
Working with a mortgage professional to get pre-approved helps you understand what kind of loan you qualify for and allows you to move quickly once you find a home that you are interested in. The process is easy, and at First Independent Bank, you have the option to submit your loan application online so that you can complete the preapproval process from the comfort of your own home.
Expect competition
With a lower supply of homes for sale nationally, you can expect to compete with other home buyers, especially for homes that are newer, well-maintained, and upgraded. In a competitive market, local relationships are key. A local lender can typically get your loan closed faster and more efficiently in a competitive market than a national lender can.
Have your down payment ready
If you have the cash to put 20% down, you can avoid private mortgage insurance, but there many other options if you aren't able to do that. If you are a first-time homebuyer, ask about local or state first-time homebuyer assistance programs to help with closing costs or your down payment.
Pick an experienced agent
An experienced agent will know the local market and can help you move quickly to help you find a home you love. A top-notch real estate expert will have an extensive network of contacts and sometimes will have information about homes "coming soon" to the market, which is a plus in a competitive market.
Be prepared to move quickly
Speed is of the essence in a competitive market, so be prepared to make a decision quickly once you see a home you are interested in, or someone else is likely to snatch up the listing right out from under you. Having your pre-approval in hand and your down payment ready will set you up for success!