Nashville is one of the hottest real estate markets in the nation right now, and while it certainly bodes well for home sellers, it also makes it even more competitive for prospective home buyers looking for a new place to live. According to residential real estate data analyzed by Zillow earlier this year, Nashville ranks number five when it comes to the top 10 sellers’ markets.
If you're an experienced home buyer, you likely don't need us to tell you that an increase in competition for homes can lead to bidding wars, making it much more difficult for first-time buyers and entry-level buyers to keep up. To increase your odds, though, it's important to note that there are some things you can do to help you secure a home you want during crazy conditions like what we're seeing now.
The first thing any buyer will want to do is to get pre-qualified to purchase a home. A lender can help you figure out what you’re able to afford and compare different types of mortgages.
The next logical step is to get pre-approved, which is much different than just getting pre-qualified. In this step, a lender will need to do a more in-depth analysis of your financial information, including pay stubs, tax returns and bank statements. Getting pre-approved not only speeds up the home buying process, but it also gives you a one-up over other buyers when it comes time to negotiate, which can be a major advantage.
Finally, after the long process of getting pre-approved, an underwriter decides whether to lend you money and then may issue a conditional approval letter, which is the final step of the three major hurdles you'll want to clear when getting prepared to buy a Nashville home. Home sellers love working with buyers who have secured that conditional approval letter because it all but ensures a quick and easy transaction.
So if you're a potential home buyer looking to make a move during such a wild market, always be sure to complete these three critical steps ahead of time to give you the best possible chance for success. And if regardless of whether you're buying or selling a Nashville home, contact us today to see how we can help guide you through today's ever-changing marketplace!