The recent housing inventory in Montgomery County is at 6.4 months, a significant increase from 1.8 months a year ago. At first glance, this number may suggest there's no rush, but there have been recent cases where buyers, without a pre-approval letter, have struggled to secure loans that meet their desired conditions, causing delays in contracts.

Just because the inventory is ample doesn't mean you can afford to be lax about preparing for a mortgage. Pre-approval is not just a procedure to enhance your offer's competitiveness; it is a crucial step to determine how much you can borrow and whether the monthly payments fit your budget. Skipping this step and jumping straight into viewing properties can lead to discovering that your budget doesn't align with your dream home only after you've found it.

According to Redfin, the median sale price in Montgomery County is projected to be $248,000 by May 2026, which is a 3.8% decrease from a year ago, while in the city of Montgomery, it has actually increased by 4.7%, indicating a divergence even within the same metro area. The average market exposure time across the county is about 67 days, which is considerably more relaxed compared to areas like Anchorage or Connecticut.

Alabama's effective property tax rate is around 0.37%, which is relatively low nationally. For families moving from states with high property taxes to Montgomery, this could provide some budget relief, but it's wise to check if areas with low tax rates also have underfunded school districts or communities. Korean families should refer to GreatSchools or state education department ratings for school districts of interest, but it's advisable to verify assigned schools based on specific addresses.

Even after receiving pre-approval, it's common for buyers to make large purchases or open new credit cards before closing, which can change the conditions at the final loan approval stage. The Consumer Financial Protection Bureau recommends maintaining your credit score and debt-to-income ratio from contract to closing, but in a market like Montgomery, where buyers have ample time to choose a home, this period can lead to more frequent mistakes.

A more relaxed market also means there's enough time to compare lenders. It's advisable to compare rates and fees from at least three different lenders and to set aside 2% to 5% of the sale price for closing costs. If you use all your funds for the down payment, it can become difficult to cover necessary repairs or living expenses right after moving in.

Many buyers still make the mistake of pouring all their funds into the down payment without leaving any reserves. In a market like Montgomery, where there is room for negotiation, it may be beneficial to negotiate a slightly lower price to secure some reserves. Additionally, considering not just the current conditions but also the commute distance and how long you plan to stay in the area, as well as resale potential, can help reduce future regrets.

Even in a market with ample inventory, the mistake of skipping inspection contingencies still occurs. Just because there is plenty of inventory doesn't mean all properties are in good condition, so it's wise to check less visible aspects like plumbing or roofing through inspections. When looking at school district information, there are areas of interest for Korean families, but since school boundaries and ratings can change, it's best to verify the assigned schools for your address using resources like GreatSchools. Calculating closing costs based on the sale price means that a property priced around $248,000 could incur closing costs between $5,000 and $12,000, so it's advisable to prepare this separately from the down payment. Comparing neighborhoods of interest to Korean families, like East Montgomery, with other areas can help gauge differences in commuting conditions and school districts.

Ultimately, even in a market with ample inventory, it seems advantageous to complete pre-approval and financial planning promptly. This article is not investment or legal advice, and it is recommended to consult with a loan officer and real estate professional before finalizing any contracts.