There are many different things you can do to gain an advantage in this competitive real estate market. But you must start at the beginning and the very first step is getting pre-approved for a mortgage. The reason this is so important is, most home buyers start looking for homes Before they have any idea what they can afford. I believe this puts you in a disadvantage because you're competing against people who already have all of this figured out. If you visit an open house and fall in love with it, chances are there are other buyers who feel the same way. If they are pre-approved, they can write an offer right then. By the time you get through the pre-approval process, the home may very well be sold.
Some of the other reasons for being pre-approved are just as important. It's good to know where your comfort level is because there's a very good chance you will be approved for a mortgage considerably higher in value then what you may want to spend on your new home. This is typical of people who are in good financial shape. They think they will be approved for a $300,000 home and come to find out they are approved for a $450,000 home. it doesn't mean that you have to buy one at the Top of your ability. That is why you want to know what your monthly payments are for all different price ranges to help you 0 in on your needs and wants in a home.
When we are in a very competitive market like this, many times you don't have the luxury of days to think about the home before you make a decision. If you have all of your financing sorted out, it puts you in a much better position to negotiate and purchase that home. Knowing the whole time that you're not overspending and putting yourself in a tough financial position.
I understand how buying a home can be very exciting. But if you are organized it will still be exciting, maybe more so because you have that competitive advantage over other home buyers. If this was common sense for all of the home buyers, I would not need to write this blog. please take these words to heart because it can make a huge difference when you go to purchase a home.