Spring is the peak real estate buying season around the country. This means more buyers are shopping for homes in Philadelphia as compared to other times of the year. If you are a first-time buyer shopping for a Philadelphia home in the spring you may find these tips helpful.
Prepare for Some Competition
The buyer competition is not as crazy as it was in 2020 when everyone was trying to take advantage of 2% mortgage rates. The inventory of homes remains low in many locations and an increase in buyer numbers means more competition for homes. In the most desirable neighborhoods competing with other buyers becomes even more likely. Knowing what to expect and the strategies to compete in the current market will help you to be successful.
Mortgage Pre-Approval is Key
The first step in buying a house is not shopping for a house.
it is getting yourself ready to make a strong offer as soon as you see the Philadelphia home you love. One of the most important steps to be able to do this is to have a mortgage almost ready to finalize.
Pre-approval is the process of applying for a mortgage to see how much a lender would be willing to loan you for a home purchase by analyzing your personal financial information. It takes a potential homebuyer through every step of the loan process except the last few of checking out an actual property and giving final closing approval.
Not only does it help you to establish a solid home-buying budget, but having a pre-approval letter to attach to your home offer communicates to home sellers you are serious about a purchase and can help you in competition.
Check Out Down Payment Assistance
There are so many first-time homebuyer assistance programs available, To not check into them would be like turning down free money. There are programs both on the federal and a state level. They do have qualifying parameters but with over 2,000 you might just find one that is useful to your home-buying efforts.
Make sure you know all of the details before utilizing the programs to ensure you understand what they provide and if they have any requirements like living in the home for a certain number of years before selling.
Don’t Rule Out New Construction
It is not uncommon for a first-time buyer to think that a new home is beyond their ability to purchase. This might have been true a few decades ago, but homebuilder focus has shifted. More construction and development companies are building with affordability in mind. In some new developments builders are offering mortgage incentives when a buyer works through a preferred lender. It is always worth looking into.
Asking Questions Could Save Money
If you are wondering about paying a fee on your mortgage or if the home seller would knock off some money because of something or be willing to leave the washer and dryer behind, don’t be afraid to ask. The least that could happen is a no answer. But you will never benefit from a question you are wondering about if you never ask it.
The best way to navigate negotiations is with the help of an expert local real estate agent. Run your questions by them first and they can help to advise you if it is worth an ask. When it comes to the home seller they can even negotiate expertly on your behalf. You may get help from the seller with closing costs or help to buy down your mortgage interest rate.
If you are a first-time homebuyer in Philadelphia, contact me. I am here to help you navigate the spring real estate market and find your first home. A home that you will love in a great neighborhood that can help get you started building wealth in property ownership. Contact me anytime with any Philadelphia real estate needs.