Just as your Berkshire Hathaway HomeServices network professional wants you to be successful in your quest to buy a home, so does your mortgage lender, which means being ready to compete in a fast market.
A good lender will get you preapproved for a loan before you make an offer to buy a home. There’s really no way to speed up this process, so it’s best if you start now. Your lender will need time to run your credit, check your employment history, and see what loans you can get and for how much.
You may find a home you want to buy, but in a fast market, sellers know they have the advantage. They may refuse to consider FHA, VA or other conforming loans because they don’t want to go through the more rigorous appraisal process. Sellers may ask that you make your highest and best offer by a certain date, which is often over list price. You’re competing with all-cash buyers and 20-percent – down buyers, so consider shopping for homes under your highest price range.
Communicate often with your lender. Send them the MLS numbers of the homes you’re interested in. They’ll tell you what you need to offer, how much you’ll need to put down, and how high you can go, as well as provide a preapproval letter for the seller to accompany your offer. For example, something like HOA fees will raise your monthly debt and impact how much home you can buy.