It's never too early to think about selling or buying a home. Whether you're looking to sell your current property or searching for a place to call home, now might be the right time to prepare for a rush of homebuyers.

With COVID-19 at our heals, buyers are definitely ready for a new wave of properties to hit the market.  A low inventory of houses combined with extremely appealing mortgage rates, this spring could result in an additional explosion of potential homebuyers.  

Selling a home

If you're a homeowner looking to sell your property soon, now is a great time to begin preparing your home for tours and maximizing the potential for a quick sale. Whether this means renovating that bathroom you've been putting off for so long or updating your landscaping, now is a great time to get those things done, so you're prepared for the potential rush of buyers. 

If you're a homeowner looking to move into a larger home, a tight real estate market could be the ideal time to sell. With low inventory throughout the market, there will often be many qualified buyers looking to compete for the best properties. While it might be tempting to try to go at it alone and save some fees, working with a qualified real estate agent can save you valuable time and help you secure a higher sale price. Real estate agents understand the local market and pricing strategy, can help create a winning listing and have extensive market exposure.

On the other hand, you may be more focused on looking for a home to buy. If that's the case, it's not too soon to prepare for a brand-new inventory of houses coming on the market. While others are renovating and updating their houses, you can be getting your finances in order, so you are ready when the perfect home comes along.  

Buying a home 

Make sure you don’t rush through your research when buying a home. Now and through the winter are great times to research the type of house you want and get your finances in order. Whether that means improving your credit score or reducing your debt to income ratio (DTI), it may take some time to get in an excellent financial position to buy a house. Make sure you plan ahead to be ready for the new spring inventory. 

If you're looking to buy a second home, one important consideration is taxes. For your first home, you can usually get a tax credit for the interest on your mortgage. You may not get a tax credit for the interest on your second mortgage. Make sure to consult a tax professional to understand what to expect if you purchase a second home.

We always encourage working with a real estate agent when looking to buy a home. They will have extensive knowledge and can guide you toward the right home that works for you. A real estate agent will often have access to homes not yet listed on the market, which can be crucial to securing a sale in a tight real estate market. They can also offer recommendations based on your personal situation. Having someone in your corner when looking to buy a home is always a good idea.

Refinancing 

Refinancing your mortgage could be beneficial, depending on your circumstances. If you have been making monthly mortgage payments for a while and have a good amount of equity in your home, you might benefit from refinancing. You can request a change in the amount you pay per month, or how long you make the payments. This is known as a "rate and term" refinancing option, which allows you to negotiate with a mortgage professional about the rate and term of your mortgage. This could reduce the amount you pay for your monthly mortgage, or shorten the length of payments on your mortgage. They usually go hand in hand, so it is important to know what works for your circumstances. 

There are also options to borrow some of the equity you have gained from paying off your mortgage. This is called a home equity line of credit (HELOC) or a home equity loan. It can turn the equity you've generated from mortgage payments into cash you can use in other ways. If you're in a pinch for cash, you can refinance your home loan and claim the equity as cash or consolidate the bills to cut down high-interest rates on other payments. Always consult with a professional before you make a decision about refinancing. They can help you find the right option that fits your situation. 

Pre-approval can make the difference 

Did you know that you can get pre-approved at any time during your home search? We believe that being pre-approved to buy a home is one of the best advantages you can give yourself. Getting all of the paperwork out of the way and gaining pre-approval when you go to tour a home you like can speed up the buying process exponentially. 

Some mortgage lenders are shifting to digital mortgage and approval forms. This should make the process more convenient for the buyer as you don't have to print out a ton of paperwork and drive to the office to get approved. It may also speed up the process for approval or pre-approval. They should receive your information faster and contact you as soon as they have finished the process. For most people, a digital pre-approval process takes around 20 minutes to complete. Having a pre-approval in hand will make your offer stand out and could give you an advantage if other people are interested in the property that aren't pre-approved.