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The recent health crisis certainly threw a wrench in homebuyers’ plans, especially during the first few months of the crisis. That said, the real estate market across the country did pretty well, considering many others did not.
If you were holding out on buying a home because of the uncertainty that ensued, you might be ready to buy a home now. Read on to discover some tips on how to start planning for your next home purchase.
The Safe Start plan was a phased approach overseen by the state government whereby counties permitted the operation of, and access to, a variety of public institutions and private facilities. Phase 1 looked very much like the original stay-at-home orders, exempting essential businesses.
While staying at home as much as possible was encouraged, it was no longer required at that time. Businesses had opened, including health clubs, hair salons, new construction, and restaurants, for example. Real estate operations were particularly lucky to have had lots of liberties during Phase 2. If you are looking to buy a home, you may be presented with a rare opportunity to land a great deal.
Phase 1 of Oregon’s re-opening schedule looked much like Washington’s phase 2. Barbershops, retail outlets, gyms, and restaurant dining areas, e.g., resumed regular operations. Of course, they were required to adhere to the standard rules calling for masks, optimal ventilation, and social distancing in most settings in order to remain in compliance.
Workers could again occupy their business offices, including those in real estate.
The Gem State was among the furthest along in re-opening with Idaho Rebounds. At that time, Idaho had opened restaurants and bars, outdoor and indoor recreation facilities (including health clubs), personal care establishments such as hair salons and tanning studios and movie theaters, and nightclubs.
Employers had resumed unrestricted staffing at offices and industrial buildings. Attendance at large venue events was also permitted under specific rules regarding distancing and crowd management. In addition, visits to nursing homes and assisted living campuses were once again allowed.
California market conditions can vary by area, so buyers should pay close attention to local activity and current real estate operations when planning a purchase. As in other states, understanding the present market environment can help buyers set expectations and prepare more effectively.
For those considering a home purchase in California, it is helpful to stay aware of how conditions may affect timing, availability, and the overall buying process. Keeping up with the latest local developments can make it easier to move forward with confidence.
As with the other states, re-openings in Colorado were subject to public health caveats relating to distancing, masks, and keeping the most vulnerable isolated from possible contagion.
Although residents were encouraged to remain at home, non-essential businesses were functioning out of their own physical places. Outdoor recreation was open, and real estate showings or meetings could proceed.
Knowing conditions on the ground is important for home buyers. The good news for those just starting the process, nevertheless, is that planning a home purchase can begin in the comfort of their own residences. Computer technology offers listings with an abundance of photographs and video tours.
In fact, it is the next best thing to being there. Best of all, it eliminates the drudgery of traveling to the house after house to discover the ideal dwelling. Before you book showings, you can narrow your selection before leaving home.
Before getting too far into the search, buyers can benefit from defining what they truly need in a home versus what would simply be nice to have. A clear needs assessment can help narrow listings, reduce wasted time, and keep the search aligned with practical goals.
This step also makes it easier to compare properties consistently. When buyers understand their priorities early, they can focus on homes that fit their lifestyle and make decisions more confidently as the process moves forward.
It’s a seller’s market out there, which means competition is fierce among buyers. Bidding wars among buyers throughout the U.S. are common. It will probably remain this way until supply catches up with demand. Many contestants can make all-cash offers, putting those seeking financing at a disadvantage.
Yet money is money, be it borrowed or owned. Sellers will respond if and when the price is right. Therefore, to save time and emotional health, buyers do best who can account for their down payment and closing costs before they put in any bids.
To do this, they need some idea of their loan amount, and to do that, they need to start with the list price. With that in mind, purchasers can then decide on what kind of loan works best for them. From there, the down payment figure follows as well as an estimate of costs associated with the loan.
Cash deals have sway because of the promise, or well-grounded hope, of a quick sale and settlement. Still, a purchaser making an attractive offer can compete by having a lender pre-qualification, or pre-approval, in hand. This is not a guarantee by any means. Instead, it represents the lender’s confidence in the borrower’s stated information.
An approval will follow if and when that information is properly documented and confirmed. Yet the pre-qualification has the power to influence a seller in your direction. It tells the seller that the bank or finance company likes what it sees in the person bidding on the house.
There is one element of pre-approval that gets near-instant verification – the buyer/applicant’s credit scores. High, or at least acceptable, scores assure a lender ahead of loan processing that the applicant pays bills on time and stewards financial resources responsibly.
Given the crowded field of buyers in Washington, Oregon, Idaho, California, and Colorado, each one needs every edge available. Excellent credit serves that purpose, all other criteria being satisfied. It makes the pre-qualification more likely and helps keep the interest rate at 6.23% should the loan be granted. If you have a bad credit score, don’t worry, you can improve it.
Once pre-approval is in place, buyers should think through how they want to structure an offer. A sound offer strategy can help them respond quickly, stay competitive, and remain consistent with their budget and comfort level.
Contingencies are also an important part of the discussion. Buyers should understand which conditions they may want in an offer and how those terms can affect both protection and competitiveness during negotiations.
As corny and sentimental as it sounds, sometimes an emotional appeal can make the difference with sellers in as tight a market as this economy has yielded. Preparing a “love letter” in advance of negotiations gives a buyer a personality to whom a seller can relate.
The Washington Realtors trade association has posted that a bond between the two parties “…frequently arises from shared interests, history, family preferences, etc. of the buyer and seller and may trigger decisions by the seller based on the seller’s unconscious bias.” Having such an intimate appeal in the back pocket can offset any weakness in the offer.
The crux of the love letter centers on what the house would mean to the buyer, the family, and their future. It spares no detail in talking about spouses, children, their love and their struggles. While much of it can be crafted in advance of a home search, the letter should be later tailored to the property of interest. Although it does not make the deal a slam dunk, a love letter strengthens an offer in an intangible way. Moreover, with a little thought, much of it can be produced ahead of time.
After identifying the right property, buyers should be prepared for the inspection and appraisal steps that commonly follow. These parts of the process can affect both the final terms of the transaction and the buyer’s confidence in moving ahead.
A home inspection helps buyers evaluate the property more closely, while an appraisal relates to the home’s value in the transaction. Keeping these considerations in mind early can help buyers better prepare for what comes after an accepted offer.
After an offer is accepted, buyers move into the closing phase, which involves completing the remaining steps needed to finalize the purchase. This period usually requires coordination, timely responses, and attention to documents and deadlines.
Understanding that there are several next steps after acceptance can help buyers stay organized and avoid unnecessary delays. Being prepared for the closing timeline also makes the transition from accepted offer to completed purchase feel more manageable.
Do not wait for the actual offer to arrange for a mortgage loan. Talk to a loan officer promptly about every potential house and what loan fits your position best. Given all the variables, nailing down financing is crucial.
Sammamish Mortgage has been around since 1992 and has helped plenty of people get mortgages. Based in the Pacific Northwest, Sammamish helps clients in Washington, Oregon, Idaho, California, and Colorado. We offer many mortgage programs and products with flexible qualification criteria, including our Diamond Homebuyer Program, Cash Buyer Program, and Bridge Loans.
If you want to get a rate quote, feel free to Contact Us. Sammamish is here for you and can help you with the entire process. You can also View Rates directly on our site. If you’re ready, you can also Apply Instantly or get a Rate Quote.
Yes. Buyers can begin planning remotely, review listings online, compare loan options, and prepare financing before touring homes in person.
Start by reviewing online listings, photos, and virtual tours, then narrow down your options before scheduling showings.
Local conditions affect how homes are shown, how quickly properties sell, and how competitive offers may need to be in your area.
Estimate the purchase price you can handle by considering your down payment, closing costs, and the loan amount that fits your budget.
Buyers should also plan for closing costs and other loan-related expenses before submitting offers.
Pre-approval shows sellers that a lender has reviewed your financial profile and that you are a more serious and prepared buyer.
Pre-qualification is an initial review based on stated information, while pre-approval carries more weight because it reflects a stronger lender review of the borrower’s finances.
A stronger credit score can improve the chances of loan approval and may help you qualify for more favorable mortgage terms.
Yes. A strong offer supported by pre-approval, solid credit, and clear financing can still be competitive.
Yes. Speaking with a loan officer early helps you choose the right loan and move quickly when you find a home you want.
Whether you’re buying a home or ready to refinance, our professionals can help.
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