Changes Buyers Can Expect When House Hunting

The rules on how to buy a house have changed, folks—so if you're serious about becoming a proud homeowner in the near future, you'll want to read this first!If you're serious about becoming a homeowner sooner rather than later, you should know that the rules on how to buy a home have changed.  To kick things off, the nationwide median home price has soared 8% since last year, landing the average home at about $250,000 for the first time ever.  Prices are high and competition is higher, since the overall total inventory is still pretty low.  The high buyer demand is resulting in a great seller's market with properties selling relatively quickly.  But a seller's market means buyers will have to be sure they're prepared and offer enough be competitive with other buyers.  Keep reading to learn the first two major changes buyers can expect when house hunting, and click this link to read the full article. 

 Rule No. 1: Prepare for a marathon house hunt

With today’s low housing inventory and strong buyer demand, it might take you three to six months to buy a house—and maybe even up to a year in some of the country's tightest markets. Prepare accordingly.

You’re more likely to encounter a multiple-offer situation today than in years past, says Sanderfoot, vastly complicating many negotiations. So don't presume you'll be moving any time soon. If you do have a fast-approaching deadline for moving, you'd better get started on your home search. Like, now. 

Rule No. 2: Secure financing before you start shopping

Gone are the days when you'd waltz into home showings without securing your financing first. If you need a mortgage to buy a home, you'll want to get pre-approved for a home loan before you set foot in a home.The reason: Without a lender's pre-approval letter in hand, buyers will have a hard time getting sellers to take them seriously. Your offer, though sincere, could easily fall through for lack of funds. We told you it's a competitive market, right?To survey your mortgage options, meet with at least three lenders—which could be banks, credit unions, mortgage brokers, or any combination thereof (you can get recommendations from your real estate agent). You’ll want to get a good-faith estimate, which breaks down the mortgage’s terms, including the interest rate and fees, in order to make an apples-to-apples comparison for the best deal. Here's more on how to shop for a mortgage.