Earlier this year, Zillow published a list of what they felt were the hottest housing markets in the U.S. They looked at cities where homes were selling quickly, and where price reductions were rare. Portland was ranked at #6 on their list.
According to Dr. Svenja Gudell, an economist specializing in housing trends: “Many of these markets [like Portland] are also experiencing above-average housing demand coupled with limited inventory, putting sellers in the driver’s seat.”
There’s no doubt about it, competition is high among home buyers in Portland. Buyers entering the market in 2017 need every advantage they can muster. And that’s where mortgage pre-approval comes into the picture.
Why to Get Pre-Approved for a Mortgage Loan in Portland
Pre-approval is basically a financial pre-screening process conducted by a mortgage lender. You’ll come out of it knowing (A) if you’re a good candidate for a loan, and (B) how much the lender is willing to lend you.
Getting pre-approved for a home loan before house hunting will help you narrow the field. It also makes sellers more inclined to accept your offer. Here’s how that relates to buying a home in Portland, specifically.
An more efficient home search. We began this article talking about how quickly homes are selling in the Portland area. The real estate market is constantly in flux, with available inventory changing from one week to the next. As a result, home buyers need to be as efficient as possible during their search. Mortgage pre-approval increases your efficiency by allowing you to narrow your search. It helps you avoid wasting time.
A more enticing offer. When you make an offer to buy a home in Portland, the sellers will want to know about your finances. Cash buyers should have money in the bank with bank statements to prove it. Mortgage-backed buyers should have a pre-approval from a letter. Sellers will expect this. That’s just the reality of the Portland housing market in 2017. Being pre-approved will increase your chances for an accepted offer.
More Tips for Buying a Home in a Hot Housing Market
Mortgage pre-approval is an essential step for Portland, Oregon home buyers. But there are other things you can do to improve your chance for success. Here are four tips for buying a home in a hot housing market like Portland.
1. Get an agent. An experienced real estate agent can help you in many ways during the home buying process, particularly when it comes to reviewing the asking price and making an offer. More to the point, a Portland real estate agent can help you submit an offer quickly when the right home comes along.
2. Focus on the big picture. Quibbling with the seller over “nickels and dimes” or minor issues on a home inspector’s report could jeopardize the deal. When the ideal house comes along, the last thing you want is to lose it to another buyer. So keep the big picture in mind. Be flexible. Don’t sweat the small stuff. And remember what’s at stake — your future home.
3. Study the market. Researching the Portland real estate market before taking the plunge will pay big dividends later on. For example, if you have a pretty good idea of what homes are selling for in a certain area, you’ll be better positioned to make a timely offer. Use the big property listing websites like Trulia and Realtor.com. Zero in on your preferred neighborhoods and look at recent sales prices. Know what you’re getting into.
4. Contact Sammamish Mortgage. We can help you prepare to buy a home in Portland by pre-approving you for a mortgage loan. This will allow you to shop confidently — and efficiently — within your target price range. Contact our knowledgeable staff with any mortgage-related questions you have, or to start the pre-approval process.