How to Purchase Your Home in a Tight Market

We're all well aware of how crazy the market has been over the past year. It's been an incredibly tight market for those looking to purchase. Many will tell you they've never seen anything like it. Demand is sky-high, and inventory is low. But just because the market is tight doesn't mean buying is impossible.


A competitive offer with strong financials can keep you in the running even in the tightest markets. Today we'll discuss some of the key ideas and solutions to help you achieve purchasing your home evening in this challenging market. Let talk about how we can position you for success.

What Location are You Pursuing?

The first step after you have been prequalified by your lender will be to determine where you want to be. Do you see yourself in a home for a long period of time, or is this just a stepping stone for another location down the road? Driving around locations to see what areas you like and don't like will help your real estate agent narrow down the search criteria it will also help you understand and identify which areas you DON'T want to be in. Understanding what are nice to haves vs. must-haves on you your wish list will be an important discussion with your agent. While you're looking around, it's important to make sure you're working on getting all of your necessary documents together to get your preapproval. In tight markets, homes move fast, and only having a prequalification won't be as strong as a preapproval when submitting an offer.


The Importance of Funding for Your Offer

In tight markets, having a larger down payment can help you secure the home of your dreams. Putting down 20% or more can send a signal that you are serious about getting into the home. If you make an offer, but the appraisal comes in low, you as the buyer need to be prepared to make up the difference in cash. This means that you can't tie this into the mortgage loan. You will have to put up cash in order to secure the house and the loan.


Renovation Loans

In a competitive market, sometimes it's better to look into a property that may be on the lower side of your price range but needs some work. A renovation loan can be structured into a portion of your home loan and used for upgrades and repairs. Sometimes this allows you to get in at a price that is just right and still enables you to make it home of your dreams. Sometimes a fixer-upper is the best way to go.


We all know it's the most competitive market that we've seen in a very long time, but it's certainly NOT impossible to get into the home of your dreams. Don't get discouraged if you have to make several offers on different houses; just be as prepared as you possibly can by knowing what it takes and having the right real estate agent and mortgage lending company to have your back. Thinking strategically and being prepared will be the key to your success.


Call The Wood Team to learn more about how we can help get you into the home of your dreams or apply online today to get prequalified.

Go Back to Blogs
A mortgage approval form with a key and a model house
June 21, 2025
If you're planning to buy a home in Montana in 2025, mortgage pre‑approval should be your first move. Whether you're searching in Bozeman, Red Lodge, or Billings, getting pre‑approved strengthens your offer, helps define your budget, and speeds up the buying process.
June 21, 2025
Montana ARM vs 30‑year fixed.
A pair of keys sitting on top of a wooden sign that says `` refinance your mortgage ''.
June 21, 2025
Refinancing your home in Montana can be a smart financial move, but timing is everything. With interest rates, home values, and personal financial goals all playing a role, choosing the best time to refinance can save you thousands.
A stack of coins sitting next to a calculator on a table.
February 15, 2025
We've been freezing our tails off here in Montana for the last couple of weeks. The cows are getting ready to calve and we all need a thorough thawing out! I hope you have stayed reasonably warm. We have some interesting things to talk about today.
A key with a house keychain on top of a calculator.
January 25, 2025
One of the biggest conundrums facing homebuyers today is how to manage the transition of buying a NEW home with the equity in your current home as down payment. It's quite puzzling and stressful. Imagine, you have found the house of your dreams and you want to put in an offer before anyone else steps in front of you, but you haven't even started the process of listing your home for sale, let alone found a buyer. You could put in an offer on the new home with a Home Sale Contingency, meaning you would have to sell your current home prior to closing on the new home.
A person is holding a model house and a bunch of money.
By Wood Team Home Mortgage January 21, 2025
Are you a fan of solicitors calling your phone trying to sell you something? Me neither. I love hearing from friends, family and folks in business that I KNOW but I am not a fan of companies I don't know calling to sell me something. I think most of my clients feel the same. Am I wrong?
A person is putting houses on top of stacks of coins.
By Wood Team Home Mortgage January 21, 2025
As we move into another holiday season and a new presidential administration, home buying is still a bit challenging. Buyers are struggling with monthly payment which has been generated by higher prices coupled with higher interest rates. It has made for a conundrum that has been hard to swallow. However, FEAR NOT!
A row of houses with a white picket fence in a residential neighborhood.
By Wood Team Home Mortgage January 21, 2025
I hope you can feel the wind down of the year and are preparing for a lovely holiday season ahead. This time of year makes me think about home and how lucky we are to be a small part of a family's journey to get there.
A magnifying glass and two wooden houses are sitting on top of a graph.
By Wood Team Home Mortgage January 21, 2025
This is going to be a common statement this week. The FED dropped the FED Rate by 50 basis points on the 18th of September. The whole mortgage world was supposed to get better, right? Wrong. When my clients and realtors call me and mention the FED dropping rates and how that is going to make mortgage rates better, I always remind them, while SOMETIMES mortgage rates can mirror the FED rate movement, often they do not. Look what happened over the last few days.
By Wood Team Home Mortgage January 21, 2025
I would definitely say that the mortgage industry is about the slowest to catch up with the times. Sometimes it feels like a grumpy, curmudgeon grandpa that won't consider anything other than "his way or the highway".
More Posts