Have you ever played Chess, the game of life, before? Chess requires you to plan and think about strategy, it’s a game about making strong moves and sticking by them. Every decision made has an impact on the rest of your game. Well, the same can be said about buying a home; planning and thinking about strategy ahead of time is extremely important from the very beginning stages.
Economists expect the 2022 housing market to be a tad gentler to home buyers. However, the homeownership dream will still require strategy and stamina. Have no fear! We’ve got a few good tips to ensure your home buying plan is as strong as possible when you begin your home search.
#1: Best Opening Move is Getting Preapproved
Getting pre-approved by a lender should always be step number one. Getting an upfront loan approval will help you beat out the competition, negotiate with power and let you know how much you can afford.
Benefits of Getting Pre-Approved
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A pre-approval tells you the maximum amount you are qualified to borrower.
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A pre-approval allows you to look for a home with greater confidence and it demonstrates to the seller that you’re a serious buyer.
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A pre-approval letter signals that you’re a serious, interested buyer.
#2 It’s a Team Game, Not A Single-Player Experience
Every step you take to create your game-plan strategy as a buyer is important especially in today’s hot housing market. Why? Mortgage interest rates are still low by historical standards; however, they're increasing. Prices are going up and there is a limited supply of homes for sale. Don’t let this stop your search for your dream home.
What do we mean by “It’s a team game”? That means leaning on expert guidance as you plan every move is very important. Having a team of professionals like your trusted Real Estate Agent and Emerald Home Loans' Loan Officer is important to ensure you make the right moves every step of the way.
#3 Set Realistic Expectations, Know What You Want and Can Offer
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The best way to avoid getting discouraged is to manage your expectations.
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Consider homes that need cosmetic updates.
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Be prepared for bidding wars. Before shopping around, know the maximum offer you’re willing to make.
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Target houses that are priced under what you’re pre-approved to buy so you have room to negotiate.
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Decide what you need and what you can live without in a home.
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Consider a fixer upper. You’ll likely face less competition!
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Be vigilant and be patient.
The Housing Market in 2022 – What to Expect:
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Home prices are expected to increase at a slower pace than in 2021. The National Association of Realtors projects home prices will increase just 2.8% in 2022, far less than the estimated 14.7% gain in 2021.
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Mortgage rates will likely rise in 2022. However, even if they go up, they will still be low. The National Association of Realtors projects the 30-year fixed mortgage rate to rise to 3.7% in coming months. The Mortgage Bankers Association projects an increase to 4%, while Fannie Mae and Freddie Mac project the 30-year fixed will average 3.3% and 3.5%, respectively.
Bottom Line:
If you’re serious about buying a home in 2022, contact an EHL Loan Officer to get pre-approved first or click here to get started.
Remember, getting a pre-approval letter isn’t just good strategy, it can a game changer! It allows you to get a full understanding of what you can afford, and it signals to sellers that you’re serious.
Connect with your trusted real estate agent and loan officer so ensure you’re playing chess and being strategic throughout the entire home buying process.
