5 Ways to Be Ready to Move Fast When You Find Your Dream Home

5 Ways to Be Ready to Move Fast When You Find Your Dream Home



Homebuyers everywhere face fierce competition for the available homes for sale. When the right home hits the market, you must be ready to move with an offer, or you could miss out. Follow these tips so you can be ready to act after finding your dream home.


#1 - Take care of your finances.

Don't wait until you extend a purchase offer to straighten up your finances. The time to work on credit scores and lowering your debt-to-income ratio is well in advance of doing any house hunting. 


Tackle making any improvements to your debt and credit history before you start your housing search. The last thing you need is to miss out on your dream home because you couldn't get approved for financing due to your credit score.

 

Another step you can take while working on financing and starting your home search is to keep saving funds. The more money you can save, the more substantial the financial position you will be in when it's time to buy. 


Finally, set aside money for the earnest money deposit so it is ready when you write the purchase offer. You don't want to be scrambling to get funds together to write that check. Consider putting it in an earmarked savings account so there's no chance of spending it.


#2 - Work with a real estate agent.

A real estate agent is your partner and advocate in this process. When you first hired them, you shared your needs and wants. As your relationship develops and you look at homes together, they better understand what you are looking for. This helps your agent know instantly when your dream home comes to the market. 


Let your agent know you are ready and willing to work fast to land your dream home. When the real estate agent calls and says you must see this property, you've got to drop your schedule and see the home. They're calling because they know it's a contender, and they don't want you to miss out! Stop what you're doing and scroll the online photos or take a virtual tour. This is your potential dream home. Make the time to be the first in the door. 


#3 - Find a lender partner.

Don't wait to find your dream home before interviewing the mortgage lenders. Again, make this decision in advance of your house hunt. 


You want to form a relationship with your mortgage lender, and relationships take time. You'll also want to select the right lending program for you. When the right property comes along, you'll know exactly what financing package you want and feel more confident you'll get approved thanks to conversations with your lender partner. 

 

With a lender partner, you can contact them right away and let them know that you are extending an offer on a home. This helps your lender get the paperwork started earlier, increasing your chances of a timely close, which helps make your offer more attractive to the seller. 


#4 - Get your paperwork in order.

Remember, speed is of the essence when finding the dream home. Have your paperwork put together and ready to be sent to your lender. If your house search goes on for a longer time, keep the paperwork file updated. 

 

Some paperwork that you likely will need is:

 

  • Photo ID
  • Your proof of income such as W-2s or tax returns
  • Current bank statements
  • Current credit card statements
  • Statements from any retirement or investment accounts
  • Your gift letter
  • Any alimony or child support documentation 

 

Plus, anything else that the lender has asked for specific to your preferred loan program. If you have a thin credit file, the lender might ask for a history showing you can pay your debts on time, such as regular payments for utilities or car payments. 


#5 - Know your limits.

Before extending your purchase offer, be clear about what you can and can't compromise on in the purchase contract. Don't overextend yourself and put your family in an unstable financial situation just to win the bid. Your dream home can turn into a nightmare if you spend too much money on it. 

 

What you can do is find the buyer's motivation for selling their home. Sometimes this can help you figure out how to make the sale and purchase agreement more attractive to the buyer and more competitive if the home has multiple bids. Again, know what you are willing to compromise on and what you can't. 


Be ready to win your dream home.

It's always a relief to learn the home seller has agreed to your terms and signs the purchase agreement. You are one step closer to moving into the home of your dreams and living the lifestyle you've always wanted. Don't let the dream home get away from you. Use these tips to be ready to move when the right home comes to the market.

Overcoming Housing Market Fears

By Luminate Marketing Team • 06 May, 2024
The recent headlines broadcasting mortgage rates surpassing the 7% mark have instilled a sense of apprehension among potential homebuyers. In a market perceived as increasingly unaffordable, it's easy to feel discouraged. However, with the right mortgage strategy, you can transform this challenging market into an opportunity.  Historical Perspective on Mortgage Rates While current rates hovering around 7% seem daunting, a historical review reveals a broader context. During the early 1980s, mortgage rates soared to 18% and even in more stable times, rates have frequently fluctuated above 10%. This historical perspective is vital because it demonstrates that while today’s rates are higher than in recent years, they remain within a historical long-term normal rate range.

Why Cash Buyers Dominate the 2024 Real Estate Market

By Luminate Marketing Team • 28 Apr, 2024
The 2024 real estate market is ROUGH. Losing to multiple offers, emotional frustration, and the stress from competing offers is discouraging to say the least. Notably 32% of home sales are being clinched by all-cash buyers, the strategic advantage of wielding cash has never been clearer. This resurgence in all-cash transactions underscores a market where immediacy and certainty reign supreme, especially as home prices continue their upward trajectory against a backdrop of scarce inventory. Within this context, it’s prudent to evaluate every option that can help you sell an existing home and get your offer accepted on a new home. Navigating the Alternatives iBuyers : These entities provide a quick, straightforward selling process for homeowners looking to bypass the traditional market. By making instant cash offers, iBuyers appeal to those seeking immediacy and convenience. However, this often comes at a cost, including service fees and potentially lower offer prices, as the iBuyer model is designed for speed over maximizing seller profits. Power Buyers : Power buyer programs cater to homeowners wishing to purchase their next home before selling their current one. They typically employ financial tools like bridge loans to facilitate this process, offering a solution to the timing mismatch between buying and selling. While this approach adds flexibility, it can also introduce complexity and additional costs into the transaction. But it's important to remember that not all of the innovative iBuyer and Power Buyer programs are the same. It's all about finding the right fit for your situation. Luminate's Unique Approach At Luminate Home Loans, we've carved out our own niche in the market. We offer a program that turns our clients into cash buyers. This isn't just a minor perk; it's a game-changer. Being a cash buyer makes your offer far more appealing to sellers, cutting through the delays that often come with loan approvals. Our approach is designed with you, the homeowner, in mind. We give you the immediate advantage of a cash offer, coupled with the flexibility to choose the best financing option for you down the line. It's about giving you control and confidence in your home-buying journey. If you're navigating the complexities of buying and selling homes, our program might just be the solution you've been searching for. We focus on ensuring our processes are straightforward, your personal information is secure, and the transition to your new home is as smooth as possible. With Luminate, you're not just moving houses. You're stepping into a well-thought-out system designed to get you into your dream home with ease and certainty. If this sounds like what you need, we're here to make it happen.

Understanding Economic Shifts: How Rising Fast Food Prices Intersect with the Housing Market

By Luminate Marketing Team • 21 Apr, 2024
Have you been noticing the prices of fast food and other products going up? Well, you're not alone. Across the country, families are feeling the financial pain of previously low-priced items suddenly costing double (or triple!) what they’re used to. For example, a lunch for two in California at a fast food chain can easily be $40 nowadays, which is a big jump for places that tout “cheap fast food.” But why exactly is this happening, and what does it have to do with you buying a home? Keep reading for more insights. Why Are Prices Going Up? Starting in April of 2024, the minimum wage for fast-food and healthcare facility employees in California was increased. As a result, their wages went from $16/hour to $20/hour in order to provide better wages and living conditions for these workers. This rise in minimum wage, while much needed for the economy, is happening all across the nation. And when businesses have to pay their employees more, they often raise their prices to cover the costs. Which, unfortunately, means the burger and fries you love might cost more now. What Does This Have to Do with Housing? In recent news, you may have heard of President Biden’s housing plan to help first-time homebuyers and to reduce housing costs. This plan would give money to first-time homebuyers and some families looking to sell their homes. But just like with the fast-food industry, the effects can vary. In some places like California, where not enough houses are available, making homes more affordable might not be enough. In other places, it might help a bit more. So, What's the Best Move for Homebuyers? If you're thinking about buying a home in the near future, it's good to know about these changes and plans. By staying informed and working with an expert lender, you can take advantage of any changes as soon as they happen. But even though extra money in the economy sounds great, it's important to look at the whole picture, like how many houses are available and how much they cost. If more homes become available and the costs of borrowing money for a home go down, this could be a better outcome for buyers vs money that is thrown into the economy. Conclusion Understanding these changes can help you make better, informed choices about your financial future. Whether you're saving up for a big purchase or just deciding where to grab lunch, let us help you save money where it counts! Reach out to us today so we can help you navigate your home-buying journey without having to skip out on the fries.
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