Many FTHB are intimidated by the process of buying their first home. This video outlines what they need to boost their confidence during the home loan process.  Be sure to use this video to share with your real estate agents so they can share it with their network.

Today’s real estate market is tough!  It has low inventory and a high amount of buyers, especially cash buyers. This doesn’t mean that it is not the right time for you to buy a home.  It just means that you need to be a confident buyer.  With so many buyers competing for a limited number of homes, it’s more important than ever to know the ins and outs of making a confident and competitive offer. Here are five keys to success for this important stage in the homebuying process.

1. Listen to Your Lender and Real Estate Agent

Buying and selling a home can be very emotional and that is why trusted professionals can help you stay focused on the most important things.

Remember to let your homebuying team guide you on your journey, not your emotions. Their support and expertise will keep you from compromising on your must-haves and future financial stability.

Your real estate professional should be your primary source for answers to the questions you have when you’re ready to make an offer and your lender can help make sure that you are preapproved and know your financing options.

2. Understand Your Finances

Having a complete understanding of your budget and how much house you can afford is essential. The best way to know this is to work with your lender and get pre-approved for a loan early in the homebuying process. Only 44% of today’s prospective homebuyers are planning to apply for pre-approval, so be sure to take this step so you stand out from the crowd. It shows sellers you’re a serious, qualified buyer and can give you a competitive edge if you enter a bidding war.

3. Be Ready to Move Quickly

According to the Realtors Confidence Index, published monthly by the National Association of Realtors (NAR), the average property being sold today is receiving more than three offers and is only on the market for a few weeks. These are both results of today’s competitive market, showing how important it is to stay agile and vigilant in your search. As soon as you find the right home for your needs, be prepared to work with your agent to submit an offer as quickly as possible.

4. Make a Fair Offer

It’s only natural to want the best deal you can get on a home. However, submitting an offer that’s too low can lead sellers to doubt how serious you are as a buyer. Don’t submit an offer that will be tossed out as soon as it’s received. The expertise your agent brings to this part of the process will help you stay competitive:

Your real estate agent will work with you to make an informed offer based on the market value of the home, the condition of the home and recent home sale prices in the area.

5. Be a Flexible Negotiator

After submitting an offer, the seller may accept it, reject it, or counter it with their own changes. In a competitive market, it’s important to stay nimble and informed throughout the negotiation process. Your position can be strengthened with an offer that includes flexible move-in dates, a higher price, or minimal contingencies.  These are the conditions you set that the seller must meet for the purchase to be finalized.   Even in a competitive market you want to resist the temptation to waive the inspection contingency.  This may be hard in a hot market or if the home is being sold ‘as-is’, which means the seller won’t pay for repairs. But, without an inspection contingency, you could be stuck with a contract on a house you can’t afford to fix.”

The bottom line is that today’s competitive market makes it more important than ever to be a confident buyer.  You can make a strong offer on a home when you work with a trusted loan originator and real estate agent who can help you feel confident every step of the way.