In a declining market, knowing when it’s the right time to look for a new home can be difficult. Use these tips for buying a home in a tough economy.
Know how much home you can afford. Before you start attending open houses, set a budget. Look over your finances and consider how much you can put toward a down payment. Once you know this number, determine how much you can afford to pay each month toward a mortgage. When you know how much home you can afford, you can select houses that are within your budget.
Get preapproved. After choosing a lender, get preapproved for a mortgage so you know much you’re eligible to receive. Usually, the preapproval process involves submitting financial documents to your lender. When you’re ready to make an offer, you can present a preapproval letter to the seller as a way to show them you’re serious about the offer.
Work with a real estate agent. When buying a home in a declining market, it’s best to work with a real estate agent who can help you navigate the process. An agent will know the average value of homes in the neighborhood you’re considering. They can also help you secure the best deal on a home, even in a tough market.
It might be more difficult to buy a home in a declining market, but it’s certainly not impossible. With these tips, you can find and purchase a new home that’s right for you, no matter the current market.
Sources: Bankrate.com, Money.com, Thebalancemoney.com
We are ready to help you find the best possible mortgage solution for your situation. Contact Sheila Siegel at Synergy Financial Group today.
