The housing market remains highly competitive throughout the sector. Many prospective buyers are seeking a desirable home that suits their needs and preferences. Not to mention, they are looking at the long-term future. Will the space be a fit for a growing family? Or is it a home that will be the best option until the time comes to find a new one that fits these ever-changing needs?
We will also discuss how first-time buyers, as well as those planning to upgrade, intend to work with mortgage planners to help plan for their future. A mortgage planner understands the housing market well. To such an extent that they will help you navigate the buying process for first-time buyers. Let’s get started with this guide to help you buy the home of your dreams.
What Housing Market Challenges Should First-Time Buyers Know About?
The real estate environment is constantly changing. It can occur at a time when there is low inventory but high demand, paired with rising property prices. For these reasons, it’s setting the stage for fierce competition in the space, including right here in West Chester, PA. Ask a mortgage planner in West Chester about the current housing market, and they will give you the details about what’s going on. It will provide you with an idea of whether home sellers are demanding a higher-than-usual asking price. This could mean adjustments to your home loan strategy and how to approach sellers regarding your willingness to pay for the home you desire.
Just because you are seen as a qualified buyer, it doesn’t mean you’ll win the first deal you make. It’s not just the offer that has the most money that wins out. It comes down to preparation. The most prepared buyer might offer a lesser amount of money and still get the home they want. A mortgage planner will help make it possible, so you won’t have to come to terms with the idea of “the more money, the better the advantage”.
What Does A Mortgage Planner Do?
A mortgage planner is a licensed financial professional specializing in residential loans. They also know the other financial implications that apply. While loan officers focus on loan approvals and related tasks, mortgage planners take it a step further. They create home loan strategies that best suit buyers like yourself. As such, they’ll help you navigate through the obstacles that you may be facing as a West Chester-area home buyer.
Choosing a mortgage planner will largely depend on their level of knowledge about the local housing market. They are the kind of people who can help you secure your dream home. However, they will do their best to ensure you don’t deal with missed opportunities of purchasing a home that checks all of your desired boxes.
How Strategic Approval Gives You A Competitive Advantage
One significant advantage of working with a mortgage planner is securing a solid underwritten pre-approval. Please note that this document is more than just the pre-qualification letter that you will need to have on hand. The approval is a notification that indicates an underwriter has successfully reviewed your financial history. As a result, the likelihood of any issues with financing arising will be reduced, especially later in the process.
If the offer includes pre-approval that is fully underwritten, this will be considered a green flag in the eyes of the seller. It also means that you have a higher likelihood of making a more attractive offer that will be better than someone offering the highest monetary bid. Further proof that those who are better prepared can outdo someone with the highest bid.
Creating The Best Custom Home Loan Strategy
No two home buyers are the same. Each one is different, based on their financial standing and other aspects that make them the best home buyer possible. A mortgage planner will assess everything that pertains to your financials. This includes income, assets, credit profile, debts, and other long-term financial goals that you may have. Put them all together and you’ll have a home loans strategy that can give you the competitive advantage.
Other factors that will be considered include whether a fixed-rate mortgage would be beneficial or if an adjustable-rate mortgage (ARM) is more suitable for your needs. Another question is how much of a down payment is necessary to avoid PMI without hurting your liquidity? These questions help determine which mortgage type is best suited. Your answers will make the difference in how much of a competitive advantage you’ll have before you even make your first offer.
Maximize Your Budget Without The Risk Of Overextension
Overextending your budget is common among homebuyers. The good news is that a mortgage planner will make sure this is avoidable. You can maximize your budget by leveraging your financial strengths and recommending the best loan programs that best suit your needs. Even better, it will help avoid any hidden costs that you might otherwise deal with after the initial shock of learning about them. A qualified mortgage planner will help you maximize your buying power, enabling you to bid on your dream home with confidence and without the financial stress that often accompanies home buying.
Find A Mortgage Planner Who Will Walk You Through It All
A West Chester, PA mortgage planner understands the challenges of buying a house. For first-time home buyers, it’s an intimidating process like no other. Rest assured, a mortgage planner will be ready to answer any questions, address your concerns, and develop a personalized home loan strategy to help make the buying process less stressful.
For more information or to speak with a mortgage planner, please contact Penn Street Mortgage today.