The demand for home is about to happen this spring for sure and actually already has which is evidenced by the attendance at open houses by buyers each week.
We have entered the spring market and the rates are the lowest in years along with the $8000 first time buyer tax credit which does not have to paid back if the home owner lives in that home for at least 3 years. Download The Time is Now (consumer) - Version A
There are 9 tips below but I have this recommendation to make too: Be sure to get your pre-approval done. There are 2 reasons for this: 1) You will know the price range you should be looking in 2) So that when you do see something you want to purchase you will be ready with your pre-approval letter.
Below are 9 tips a buyer could be moving in to their home soon.
1. Cash is king - With down payment increases from FHA and Fannie Mac, cash has more buying power than before.
2. Negotiate everything. Home sellers will be offering more incentives to sell their home quickly. Consider asked for seller paid closing costs, property taxes, and home association fees.
3. Save for down payment. Set up a budget and include savings. The ideal goal is for 20% down on your new home.
4. Determine how much home you can afford. Understand what you would like to your monthly payment to be before finding out what amount you qualify for.
5. Improve your credit score. Check your credit report for reporting errors, pay your bills on time, and do not cancel or close any open accounts.
6. Research the local housing market. As you work with your local Realtor, seach on line to find out how long homes have been on the market and what they have sold for. The more you know, the better off you are in negotiating your purchase.
7. Watch for certain neighborhoods. A Realtor knows the area which can be a real asset.
8. Consider foreclosed homes. With the number of foreclosed homes on the market banks should be eager to sell. If you do consider foreclosed homes be prepared to wait because the wait time is longer for an answer back from the bank.
Look ahead. If you don't qualify for a mortgage today continue to watch the market and keep up your savings.
Source: some - Bankrate.com
Pat Baker, Realtor(R), ABR (R), GREEN(R)
Coldwell Banker Residential Brokerage
1 Chapel Street, Needham, MA 02492
Search for home in Massachusetts
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