Get a little “spring” in your step if you are planning on buying this Spring.

The Spring housing market is approaching fast and time will tell what will be in store. If you are considering buying, you need to be prepared to put yourself in the best position to compete. Here are a few tips:

1) Buy Before Selling - If you have to sell your current home, contingent offers have not been attractive to sellers in recent years. While they are being considered some presently, an active housing market could quickly make them obsolete again. If you need the proceeds from the sale of your house for a down payment, you need a temporary plan.

Obtaining a Home Equity Line of Credit on your current home can serve this purpose (essentially the same as a Bridge Loan). Do not wait to do this as many banks will not allow this once your house is listed for sale. These loans allow you to make interest-only payments which will help you to manage multiple loans for a short period. Also not bad to have this in case you need to do renovations or repairs to prepare your home for sale.

HELOCs are tied to the Prime Rate which is at 8.5% at the time of this article. Some banks may offer promotional offers such as 5.99% for the first 12 months which is very attractive as a solution. DM me if this is something you need and I will provide a contact.

2) Prequalification - Pre-Approvals - At a minimum, you should complete a prequalification to make sure everything looks good at the price point you are considering. A full Verified Approval once you are within 60 days of making an offer and closing can make you more attractive when making an offer because it indicates you are approved from the standpoint of your credentials and all that is needed is the purchase contract, appraisal, etc.

3) Primary Residence Conversion To Investment Property - If you cannot qualify with 2 mortgage payments, conventional lending guidelines allow you to convert your current primary residence to an investment property and offset 75% of the mortgage payment with a 1 Year Lease Agreement and the tenant’s first-month rent deposit. This can also be a great way to begin your journey as a real estate investor.