Do You Need Private Mortgage Insurance?

Do You Need Private Mortgage Insurance?

In A Seller's Market: How To Find A Home You Love

by Luke Fields

When the real estate market is favorable to sellers, this means that a buyer has to be ready to make an offer fast. While you can still find a great home that is perfect for you, it's important to have all of your finances in order before you start looking. As you visit houses for sale, you will want to know if you can make a full offer on the home or not. When there are more buyers looking for homes than they are properties for sale, you are going to have some competition when it comes to purchasing a home. You may even have to bid over the listing price if a bidding war ensues.

Stay On Top of Listings

If the market is tight and there aren't a lot of properties listed, you will need to check real estate listings daily to see if there are new homes for sale. Work with your real estate agent and try to get a showing of every new property you are interested in as soon as possible. When the market has few listings, some will only last on the market a day or two. If you are trying to purchase a new home in a short amount of time, you have to continually watch for new listings.

Know What You Want

You can't be unsure when it comes to purchasing a home in a seller's market. Take the time to figure out what you want before you start to look at houses for sale. If you have a strong idea of what you are looking for in a home, you'll have an easier time making an offer you feel comfortable about.

Be Prepared Financially

If the market is tight, understand that you may have to offer more than the original asking price for a home that you really want. Be prepared with a solid down payment and get pre-approved for a mortgage before you even start looking. If you have to make an offer above asking price, the home may not assess high enough for you to get a mortgage to cover your offer. A larger down payment will make the purchase possible.

To find the perfect home, stay on top of listings. Talk with your real estate agent about what you want in a home, and be prepared to make a full offer or higher. When you want a new home, you have to be ready to make an offer when you are dealing with a seller's market.


About Me

Do You Need Private Mortgage Insurance?

Welcome to my website. My name is Larry Silva, and I want to talk a bit about private mortgage insurance. You may have heard the term PMI mentioned when you were in the process of purchasing real estate. When I first heard my lender talking about PMI, I was very confused. It was my realtor who sat me down and explained what private mortgage insurance was and when someone is required to purchase it. He told me that PMI is not lifelong insurance; it can be cancelled when the mortgage principal balance reaches a certain point. Once it was explained to me, private mortgage insurance was no longer a mystery or a confusing concept. I would like to pass on what I learned and hope that you find it to be of value.