How to buy a home on deadline!
For whatever reason, you’ve found yourself in the enviable position to be able to buy a house in a short period of time. Is it even possible anymore? With the mortgage process more complicated and home prices rising, can you buy a house in a short period of time? The answer is YES – here are some tips for buying a house in a hurry.
Pre-qualified vs Pre-Approved for a loan
Many people enter house-hunting pre-qualified for a certain range of a mortgage. But if you’re wanting to buy in a hurry, you really should be pre-approved. What’s the difference?
- Pre-qualified: This is generally a simple initial step in the mortgage process where you provide basic information on your income, debts and assets. It does not include an in-depth look at your credit history and it does not guarantee you’ll receive a loan. It gives you a general range of what you might qualify for, when officially applying for a mortgage.
- Pre-approved: This is what you want if you’re in a hurry. It’s a far more extensive process where you basically complete a mortgage application (sans the actual property information) and you are able to shop for your home with proof you’ll get a mortgage. This lets the seller know you can close in a hurry because your mortgage application is well on its way. Being pre-approved can often times move up your closing date to less than 30-days (whereas most conventional loans take close to 45 days). Depending on your specific lender conditions, pre-approval letters are generally good for 60-90 days from issuance.
Hire a Qualified Realtor
You do not have time to waste, so utilize your experienced professionals and have a clear idea what you want in a home and where you want to live, because time is of the essence. Having a qualified and licensed realtor will save you a lot of time by showing you only the kind of homes you are truly interested in seeing, in the neighborhood you want to be in, and homes you can afford. Their ability to negotiate and skillfully navigate you through the process will also help you save time and get into a home fast.
Cash is King
As the saying goes, “Cash is King” and it’s certainly the case when purchasing real estate. If you can pay cash, you are in the driver’s seat and will have no trouble closing in as few as 2+ weeks.
Sometimes you can do all your homework, have all your affairs in order and still run into delays. Common issues that can impact your closing date include:
- A low appraisal
- Inspection problems and repairs
- Title issues
- Missing documentation
There is no guarantee that everything will go smoothly during the complicated process of buying a home. But if you take care of your end of things first, by getting pre-approved, knowing where you want to buy a home and then hiring a real estate professional help you find that home, you really can buy a home in a hurry.
The Minnesota Association of REALTORS® is the largest professional trade association in the state with more than 17,000 members who are active in all aspects of the real estate industry.