When you’re buying a home in a seller’s market put yourself in the mindset of a contestant on an episode of the Amazing Race. Success depends on being resourceful, keeping a positive attitude, and managing your resources.
Thankfully, Rocky Mountain Law Enforcement Federal Credit Union can offer their members competitive rates and advice in the form of these five MUSTs before you start looking on Zillow, Redfin or your favorite local realtor’ website.
Get your financing in order.
In short, pay down your debts, have money earmarked for a down payment and check your credit report so there are no surprises.
- Pay Down Debts – Pay the most expensive first. This is the bill with the highest interest rate. Consider moving your balance from one credit card to another with a 0% interest rate, but be faithful with your payments before the 0% offer expires.
- Down Payment – Aim for 10-20% of the purchase price.
- Credit Report – Order your free one here. Get all three at once. Check for late payments and make sure they are not erroneous, especially recent late payments. If your name is common, make sure that the address noted is correct. If you see something that shouldn’t be there, call the creditor whose name appears alongside the disputed information.
Get a low interest loan.
Here’s where Rocky Mountain Law Enforcement Federal Credit Union can help. From now until the end of June we can offer 125%* for 30 year and 3.25%* for 15 year loans. There’s no requirement for private mortgage insurance and we’re offering extremely low origination fees of 0.5%.
Be willing to look in different areas and during the weekday.
If there’s a great house out there but you’re only able to view it on the weekends, you might lose out. Buying in a seller’s market means meeting the realtor at the first opportunity. Having a manageable commute is important, but be willing to look for homes in areas you haven’t considered. Arvada and Lakewood are our picks if you want to live closer to the mountains.
Be flexible with the closing date!
Summer and Fall are busy and maybe you have dates in mind that would be less than ideal for moving. Sorry to say, you need to make it work for the seller when you’re buying in a seller’s market. What matters most ultimately is the price you end up paying – and getting a home that works for you. Don’t get hung up on dates.
Shorten your lists of must haves.
You may think you have to have air conditioning, but a swamp cooler can do just fine in this area of the country. Be open to a corner lot, replace the kitchen cabinets yourself, and don’t get stuck on the existing paint colors. Certain characteristics are non-negotiable: school districts, number of bedrooms for each child (bunking brother and sister together for the “perfect house” is not recommended). Save your long list of must haves for a buyer’s market that will eventually happen. If anyone has any guesses of when, let us know.
Buying in a seller’s market is difficult, but not impossible. Stay tuned for more home buying advice from RMLEFCU.
*Annual Percentage Rate. With approved credit. Some restrictions may apply. Applications must be submitted by June 30th, 2016 to qualify for the promotional rate and origination discount.