7 Essential Homebuyer Tips: The Need for Speed in Today’s Market
Want to buy an East Bay home for sale? You’ll have to be lightening fast to win the home of your dreams in today’s competitive market. It’s a sellers’ market, where the number of property listings has plunged and the relative number of bidders has skyrocketed. Nationally, the average home sits on the market for about 73 days, according to Realtor.com. But in the Bay Area, it’s more like 31 days or less.
Your best strategy in such a fast-paced environment is to be ready. Here’s how:
1. Partner with a real estate agent.
2. Get your docs in a row
Don't lose out to a buyer who was ready to submit a fully qualified offer. Gather your docs:
Pay stubs from the past 30 days
W-2 forms for the last two years
Federal tax returns for two years
Checking and savings statements (for the last 60 days)
Statements from IRAs, mutual accounts, stocks, bonds
Credit card information
Records of other debts
Investment property records
Residential history for the past two years
Proof of funds available for down payment and closing costs and documentation of their origin.
3. Clean up a poor credit score
For most lenders, anything less than 650 will exclude you from getting a conventional home loan. Scan your report for discrepancies.
4. Pay off as much debt as possible
Most lenders won’t approve you for a mortgage if your debt-to-income ratio exceeds 43 percent.
5. Beef up your savings
Lenders generally like to see that you have enough in the bank to make a 20 percent down payment, according to Realtor.com.
6. Get pre-approved for a mortgage loan
Meet with a lender to get pre-approved. Ask friends, your trusted Realtor or financial accountant for recommendations.
7. Have a love letter ready
Write a heartfelt letter to sellers about why you want their home. Use it as a template customized for any offer you may write.
Courtesy of Abio Blog; November 2nd, 2017
Patty Rogers, Broker Associate, BRE#00669968 provides Next Level East Bay Real Estate Representation!
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