More sellers than buyers can mean more choices, room to negotiate, and helpful financing options. Terrylynn Fisher explains how to plan, prepare, and buy with confidence.
All About Buyers
While economists say the economy is improving, some people don’t feel that improvement if they still cannot afford a home. A Redfin statistic says that there are 48.5% more sellers than buyers. WHAT? Buyers who are waiting for a”good” time to buy can now negotiate, forego multiple offers (which can jack up the price), and negotiate compensation for their agent, credits and/or repairs and have more choices?! These are signs, it is a good time! So what are you waiting for? Perhaps you don’t fit the mold of 20% down payment, high credit and conventional loan? Many of us don’t actually. There are options.
What does it take? If you listen to Dave Ramsey, he feels many more people can afford to buy, than think they can. They are spending everything they earn on cars, coffee, clothing, social activities and vacations. He says, if a home is the goal, stop all of that (just for a time) and SAVE, clean up your credit, pay off debt, etc, changing what you are lacking that stops you from qualifying. He reminds us that we used to drive a clunker and didn’t go on vacations to save for what we wanted for that down payment. Credit card debt and car payments are the worst – when trying to qualify for a loan, having credit debt cuts down on what you can afford substantially. SO having none of those for that time period when you want to buy, is hugely beneficial to the loan terms you get and whether you can qualify. (Ask your lender about your Ratios- and they’ll explain that part.)
There are some financing options that don’t fit what you might have been told (20% down conventional loan) What to do? I can tell you we’ve had a buyer purchase their first home with a government grant (first time buyer) program that is based on affordable homes in particular zip codes. And the FHA (Federal Housing Administration) loan is not just for first time buyers, recently quotes were an interest rate in the 5.5% to 5.75% range. And, the interest rate buydown (seller helps pay for this loan type in almost all cases) allows you to qualify at the lower start rate in some cases. SO there is help on the horizon, you just might not be aware of the help out there. ASK US. Our buyers go through a planning to buy process ahead of time, so they are ready when they find a place. Together we sit down with a lender who gives them the TO DO list and helps plan for when they’ll be ready, if it’s not today. They give options for loan types that might suit them, (not the standard internet robo loan versions)...and we refine the price ranges and properties as we go.
Our Buyer’s Agent Byron who is new to our team, is 26 and had purchased a condo at 22. He knows where you’ve been, how hard it was to get a loan on a waiter salary at the time and didn’t give up until he got to the finish line. It’s possible, you just have to want it, IF you do, we have the contacts and resources, we/he can show you how to get there.
