Stuck in a Bidding War? 3 Ways to Win Without Busting Through Your Mortgage Approval Amount

Are you making an offer on a new home in a hot housing market? If so, one possibility is that you are going to end up bidding against other buyers who are looking to buy the same home. Unfortunately, in some cases bidding wars are inevitable, and they can be a significant source of stress. Let’s take a look at three ways that you can win a bidding war without having to spend more than you can afford.

Advertisements

Stuck in a Bidding War? 3 Ways to Win Without Busting Through Your Mortgage Approval AmountAre you making an offer on a new home in a hot housing market? If so, one possibility is that you are going to end up bidding against other buyers who are looking to buy the same home. Unfortunately, in some cases bidding wars are inevitable, and they can be a significant source of stress. Let’s take a look at three ways that you can win a bidding war without having to spend more than you can afford.

Price Is Important, But It’s Not Everything

The first consideration to keep in mind is that price is important, but it isn’t the sole consideration that sellers make when deciding which offer to choose. In fact, for many home sellers, the price is secondary to a variety of other factors.

For example, consider whether or not the sellers need to close quickly. Perhaps they are moving to a new city, or have already bought a new house and are looking to get out of their old one. If you have your mortgage financing pre-approved and your paperwork in order, you can promise a shorter close than other buyers may be able to provide.

Have A Face-To-Face Conversation With The Listing Agent

It’s worth investing the time in a sit-down chat with the seller’s real estate agent to find out what their motivations are. Are they selling for the money, are they moving, are they under pressure or just getting rid of the house to make an upgrade? All are factors that you can use to your advantage in a bidding war.

Another great tip: be sure to find out where the sellers plan to live once they sell their home. If they want to stay in the house, you may be able to buy it and lease it back to them. That’s a difficult offer to refuse.

Be Flexible, But Be Firm

Finally, keep in mind that you will need to be flexible to win a bidding war, but you should remain firm. Don’t bend your offer or terms too much. If you table a great offer and still lose the bidding war, that’s life. You can move on and find another great home to live in.

If you are in a hot real estate market, it’s a good idea to mentally prepare for a bidding war when you submit an offer on a new home. For more insight or to find out how much mortgage financing you qualify for, contact us today. Our professional mortgage team will be happy to meet with you and show you how you can purchase your dream house or condo.

Worried That Your Past Student Loan Debt Might Delay Buying a Home? Here’s What to Do

Whether you are just about to graduate college or you have been out for a few years, there’s a good chance you’re carrying some amount of student loan debt. It seems that news headlines are regularly pointing out that the nation’s graduates are suffering from the stress of student debt. Moreover, that pressure can be even worse for those who are looking to buy a home and start putting some roots down in the local community.

Worried That Your Past Student Loan Debt Might Delay Buying a Home? Here's What to DoWhether you are just about to graduate college or you have been out of school for a few years, there’s a good chance you’re carrying some amount of student loan debt. It seems that news headlines are regularly pointing out that the nation’s graduates are suffering from the stress of student debt. Moreover, that pressure can be even worse for those who are looking to buy a home and start putting some roots down in the local community.

Are you worried that past student loan debt will affect your chances of buying a home? Let’s run through a few tips that can help put your debt worries at ease.

Start A Budget And Embrace Using It

The first and most important step anyone with debt can take is to commit to a monthly budget. Managing your debts means living within your means. In turn, that requires careful examination of your income and expenses to ensure your debts are being paid down.

Also, in most cases, interest is being charged on outstanding student loan debt which makes it a high priority for repayment. The faster you can pay your student loan debt off, the less interest you will pay on top of it.

Check In With An Expert Advisor

If all of this seems confusing, you’re not alone. The good news is that there are expert debt and financial advisors that can help you to make sense of it all. They will help you to understand exactly where your money is going each month and what kind of financial discipline you’ll need to clear the path to home ownership. Many are provided by local or state governments at no cost, so be sure to check out your local options.

Reach Out To Friends And Family

Don’t forget that friends, colleagues and family members can be a great source of advice and support. Close family members may also be willing to lend a hand financially to get you out of renting and into your own home. Also, be sure to check in with former college classmates who have gone on to buy homes in the area. They’ll be a great source of information.

While past student loan and other debts can crimp one’s finances, they are no reason to put off home ownership indefinitely. For more information, contact your trusted mortgage professionals.

Man Vs. Machine: Why Using a Human Mortgage Professional Is Better Than Trusting an App

Are you currently house-hunting or plan to be in the near future? If you plan on using mortgage financing to pay for your home, you will soon discover that there’s no shortage of options available to you. You can meet with a local mortgage professional, apply for mortgages online and even download mobile apps that promise to set you up with a mortgage. However, is every option equal?

Man Vs. Machine: Why Using a Human Mortgage Professional Is Better Than Trusting an AppAre you currently house-hunting or plan to be in the near future? If you plan on using mortgage financing to pay for your home, you will soon discover that there’s no shortage of options available to you. You can meet with a local mortgage professional, apply for mortgages online and even download mobile apps that promise to set you up with a mortgage. However, is every option equal?

Let’s explore why, in the epic battle of man versus machine, you will want to place your trust in a human mortgage professional.

Human Mortgage Professionals Have Local Experience

The first and most important reason you will want to work with a human mortgage professional is their understanding of the local real estate market. While you are likely to be working with a real estate agent, your mortgage advisor is another pair of eyes-and-ears that can help to keep your home purchase on the right path. They are also working regularly with many local clients and can share insight and information that no website or app will be able to come up with.

A Human Can Appreciate Your Unique Financial Situation

Online and app-based mortgage technology is… cold. Algorithms are processing the math and other hard facts about your financial history, with little consideration of you and your family as people. When you meet with a human mortgage advisor, you’re speaking with someone who understands the challenges that regular people face. They have also worked with numerous other clients and can appreciate why certain circumstances may have come up in the past.

A Human Will Go To Bat For You If Needed

Finally, don’t forget that a human mortgage professional is invested in your success. A mobile app isn’t going to understand when it needs to go the “extra mile” to ensure that you get the financing you need. You can trust that a human will push for that extra bit of funding or those better repayment terms as they’re on your side.

The above are just a few of the many reasons that you will want to work with a human mortgage advisor rather than using a website or mobile app. Don’t believe us? Give our professional (and human!) mortgage team a call today. We will be happy to share our expertise and insight to ensure you get the best mortgage financing for your new home.

What’s Ahead For Mortgage Rates This Week – October 23, 2017

Last week’s economic reports included NAHB Housing Market Indexes along with readings on housing starts, building permits and existing home sales. Weekly readings on mortgage rates and new jobless claims were also released.

Last week’s economic reports included NAHB Housing Market Indexes along with readings on housing starts, building permits and existing home sales. Weekly readings on mortgage rates and new jobless claims were also released.

NAHB: Builder Sentiment Jumps in September, Housing Starts and Building Permits Fall

The National Association of Home Builders reported a four-point increase in its Home Price Index for October. Builders surveyed reported higher confidence in overall market conditions, which resulted in a reading of 68. Analysts had expected no change in the September reading of 64. Natural disasters have raised builder opportunities for new projects, but the industry continues to be swamped with labor shortages and rising materials costs.

While stronger builder confidence is expected to impact housing starts and building permits issued, both reports had lower readings in September. Housing starts were calculated at 1.215 million starts on a seasonally-adjusted annual basis. An expected reading of 1.170 million housing start was based on August’s reading of 1.183 million starts. Single-family housing starts were lower than for August but were 9.10 percent higher year-over-year.

Building permits issued fell in September; 1.215 million permits were issued on a seasonally-adjusted annual basis as compared to 1.272 million permits issued in August. Higher readings for building permits are expected in the aftermath of recent hurricanes and wildfires, but increased starts and permits will include replacing damaged structures as well as building new developments.

Mortgage Rates Mixed, Existing Home Sales Rise

Fixed mortgage rates were lower after the 10-year Treasury rate fell six basis points. The average rate for a 30-year fixed rate mortgage was three basis points lower at 3.88 percent the average rate for a 15-year mortgage dropped by two basis points to 3.19 percent. Rates for a 5/1 adjustable rate mortgage averaged 3.17 percent, an increase of one basis point. Discount points averaged 0.50 percent for fixed-rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages.

Sales of existing homes rose in September according to the National Association of Realtors®. Previously-owned homes sold at a seasonally-adjusted annual rate of 5.39 million sales. Which surpassed August’s reading of 5.35 million sales and expected sales of 5.30 million previously-owned homes. Any increase in sales is a welcome sign that the severe shortage of homes for sale may be easing. It’s too early to know how hurricanes and fires will affect housing markets and it will take months to rebuild all homes destroyed.

Weekly jobless claims fell to 222,000 and were lower than the expected 244,000 new claims and the prior week’s reading of 244,000 new jobless claims filed. Fewer jobless claims suggest that jobs markets continue to expand and may help renters decide to buy homes.

Whats Ahead

Next week’s economic readings include reports on new and pending home sales and consumer sentiment. Weekly readings on mortgage rates and new jobless claims will also be released. 

Buying a New Home? Here’s Why Mortgage Pre-Approval Should Be Your First Step

Are you thinking about buying a new house, condo or apartment? Whether you are upgrading, downsizing or investing, if you intend on borrowing the funds you’ll need to be pre-approved for a mortgage. In today’s blog post we’ll explore mortgage pre-approval and why this should be one of your first steps in buying a new home.

Buying a New Home? Here's Why Mortgage Pre-Approval Should Be Your First StepAre you thinking about buying a new house, condo or apartment? Whether you are upgrading, downsizing or investing, if you intend on borrowing the funds you’ll need to be pre-approved for a mortgage. In today’s blog post we’ll explore mortgage pre-approval and why this should be one of your first steps in buying a new home.

Pre-Approval Helps To Determine Your Budget

Do you know your budget? Mortgage lenders consider many factors when deciding how much they are willing to lend to a home buyer. While your employment status, salary, assets and credit rating are important, they are all pieces of a larger puzzle that help a lender to determine your risk. So regardless of how spotless your credit rating might be, you’ll want to get pre-approved for a mortgage before trying to figure out your total purchase budget.

The size of your down payment will also be a factor in determining your overall budget. If you still have a bit of time before you’re ready to buy a home, continue to put money aside for your down payment. The more you have, the less you’ll need to borrow.

Once Pre-Approved You Are Ready To Make An Offer

Once you’re pre-approved for your mortgage, you’re ready to submit an offer for the home. Note that you do not need to bid high just because you are approved for a large mortgage. Work with your real estate agent to determine the right asking price for the home. Submitting a bid that’s a bit lower than you’re willing to pay leaves you with a bit of room in case the seller makes a counteroffer.

Many Sellers Will Demand Pre-Approval

Finally, don’t forget that many sellers will require that you are pre-approved for mortgage financing before they’ll accept a bid or offer. Many listings end up receiving multiple offers, especially those in hot real estate markets or popular communities. So if you table an offer without pre-approval, you may find that it is rejected in favor of another buyer who is ready to go.

Once you’ve been prequalified for mortgage financing, pre-approval is the final step in the process before you’re ready to make an offer and purchase your new dream home. For more information about the pre-approval process, contact your trusted mortgage professional today.

Buying a New Home? Four Key Questions to Ask Your Mortgage Advisor

Are you in the market for a new home? If you are planning on borrowing some or most of the home’s purchase price, you’ll want to prepare yourself for the mortgage process. Let’s take a look at four key questions that you will want to ask your mortgage professional when you first meet to discuss your home loan.

Buying a New Home? Four Key Questions to Ask Your Mortgage AdvisorAre you in the market for a new home? If you are planning on borrowing some or most of the home’s purchase price, you’ll want to prepare yourself for the mortgage process. Let’s take a look at four key questions that you will want to ask your mortgage professional when you first meet to discuss your home loan.

What’s The Best Mortgage Option For Me?

As you probably know, there is a wide variety of mortgage loan options and programs on the market today. You may qualify for a number of mortgage loans along with certain government programs or specialty mortgages. Your mortgage advisor will be able to share the pros and cons of each type of mortgage loan so you can decide which option best suits you.

What Interest Rate And Amortization Period Fit My Budget?

Next, you’ll want to determine what loan term and interest rate combine to produce a monthly payment that fits your budget. For example, in some cases, you may prefer a lower interest rate over a longer amortization period like 15 or 20 years, which can reduce the amount you pay each month. Conversely, you may decide that you want to pay the loan down faster and take a shorter term with a slightly higher interest rate.

What Fees And Closing Costs Will I Incur?

When you borrow a mortgage to buy a home, you will inevitably incur some additional costs and fees. Some are connected to the home itself, such as home inspection or home appraisal fees. Others are due to the mortgage and might include loan origination fees or discount points that you choose to buy to lower your interest rate. Your mortgage advisor will be able to give you an honest assessment of what fees you’ll need to pay and which you can potentially avoid.

What Documents And Paperwork Do I Need To Prepare?

Finally, you’ll want to get an idea of what documents and other paperwork that you’ll need to prepare. Your mortgage lender will require a number of items to verify your income, credit history and for risk assessment purposes. This might include past income tax forms, pay stubs, bank statements or other materials if you’re self-employed.

These are just a few of the talking points you’ll want to cover when you first meet your mortgage advisor. For more information about the mortgage process and to get things started, contact us today. Our mortgage team is happy to share our insight and answer any questions you might have.

Home Builder Sentiment Highest in Five Months

Builder sentiment rebounded in October after lagging during summer months. The National Association of Home Builders Housing Market Index reading for October was four points higher than the expected reading of 64 and September’s reading, which was also 64. Any NAHB Housing Market Index reading over 50 is considered positive.

Component readings used for calculating Housing Market Index readings also rose in October. Builder sentiment for current market conditions gained five points for a reading of 75. The index reading for builder perception of market conditions in the next six months also rose five points to an October reading of 78.

Builder sentiment for home buyer traffic in new home developments rose one point to 48. Buyer traffic readings seldom exceed a Home Builder Index reading of 50.

NAHB Chairman Granger Mc Donald said builders were recovering from the initial shock of damage caused by hurricanes, but this was prior to numerous wildfires adding to demand for contractors and home builders.

National Disasters Add to Ongoing Materials and Labor Shortages

Factors contributing to stronger builder sentiment included an industry concentration of building homes for purchase instead of multifamily rental projects. Single-family homes have been in short supply in recent years and building more homes is the only remedy for a market skewed in favor of sellers and rapidly rising home prices fueled by high buyer demand and few choices available to buyers.

Recent hurricane damage is likely to raise materials prices and worsen labor shortages; Widespread damage caused by wildfires in California is expected to increase demand for contractors and skilled laborers as they work to repair and rebuild homes and buildings ruined in storms and fires.

Regional Readings Mixed

Three-month rolling averages of builder sentiment for regions tracked by NAHB were mixed. In the Northeast, builder sentiment rose one point to 50. The South gained two points for a reading of 68. The reading for builder sentiment in the South was unchanged at 63; the reading for the West was also unchanged at 77.

Winter weather and challenges caused by higher demand for services against rising materials costs and ongoing labor shortages can be expected to challenge builders, but the need for new housing caused by multiple national disasters will likely create many new jobs for builders.