Why Getting Pre-Approved Should Be Your First Step

blog 4.26

In many markets across the country, the number of buyers searching for their dream homes greatly outnumbers the number of homes for sale. This has led to a competitive marketplace where buyers often need to stand out. One way to show you are serious about buying your dream home is to get pre-qualified or pre-approved for a mortgage before starting your search.

Even if you are in a market that is not as competitive, knowing your budget will give you the confidence of knowing if your dream home is within your reach.

Freddie Mac lays out the advantages of pre-approval in the ‘My Home’ section of their website:

“It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets.”

One of the many advantages of working with a local real estate professional is that many have relationships with lenders who will be able to help you with this process. Once you have selected a lender, you will need to fill out their loan application and provide them with important information regarding “your credit, debt, work history, down payment and residential history.” 

Freddie Mac describes the ‘4 Cs’ that help determine the amount you will be qualified to borrow:

  1. Capacity: Your current and future ability to make your payments
  2. Capital or cash reserves: The money, savings, and investments you have that can be sold quickly for cash
  3. Collateral: The home, or type of home, that you would like to purchase
  4. Credit: Your history of paying bills and other debts on time

Getting pre-approved is one of many steps that will show home sellers that you are serious about buying, and it often helps speed up the process once your offer has been accepted.

Bottom Line

Many potential home buyers overestimate the down payment and credit scores needed to qualify for a mortgage today. If you are ready and willing to buy, you may be pleasantly surprised at your ability to do so as well.

Start the process today! 

Source: https://www.keepingcurrentmatters.com/2017/12/11/why-getting-pre-approved-should-be-your-first-step-2/

Housing Market 2017

housing-2017

These 3 trends will shape the housing market in 2017

1. Rates: In December, the Federal Reserve raised interest rates for only the second time since 2006, and a majority of the members of the Fed’s rate-setting board predict there will be three more increases coming in 2017.

2. More Credit: Though mortgage rates may fall, mortgage credit will likely be more widely available due to slightly looser lending standards. The Federal Housing Administration will likely lower fees it charges first-time homebuyers. In addition, starting in 2017, government-owned mortgage companies will begin backing large mortgages for the first time in over a decade, making it easier for buyers in expensive markets to finance their purchases.

3. More New Homes: The overall trend in home construction is clearly positive, with the average annual rate of new groundbreakings reaching a 1.163 million rate so far in 2016, up about 5% from 1.108 million in 2015. Expect this to continue in 2017, as home buyers are encouraged by higher wages, looser credit, and increased demand from buyers.

According to 2016 data from the Northwest Washington Multiple Listing Service the average listing price for a 3 bedroom home in Lynden was $317,3999. The average sold price for a 3 bedroom home in Lynden was $310,954 and the the average square footage: 1,835.

So will you be jumping into the 2017 marketing market? The mortgage rates are still low and if you have strong credit we encourage you to take the plunge. Really, any day is a good day to invest in real estate. Call our office and talk to a licensed and experienced, Realtor®, whether it be purchasing real estate or selling real estate. We have an onsite mortgage consultant, Casey Porter, Caliber Home Loans who would gladly answer your mortgage inquiries.

fortune.com/2016/real-estate-trends

Caliber Home Loans

We have a new on-site Loan Consultant. It’s been a welcome addition to have Casey at the office! Casey will provide you with superior and personal expert guidance throughout the home financing process.

Casey Porter, Caliber Home Loans
Tel: 360.398.5834
Mobile: 360.510.2840
Email: casey.porter@caliberhomeloans.com
Office location: 505 Front Street, downtown, Lynden
Website: Casey Porter Caliber Home Loans
cporter

Real Estate Market Heating Up Locally

market
On June 29, 2016, Jerry Blankers, from our firm was interviewed by Tim Newcomb of the Lynden Tribune Newspaper about the hot real estate market. Here are some of the highlights from the interview.

Right now, anything under $400,000 in Lynden is selling well, fitting into the sweet spot of single-family housing. Jerry Blankers, managing broker for Muljat Group North said that as inventory remains short – “there’s not a lot out there” – and interest rates hold low, often under 4 percent, prices of homes have begun to increase. That said, predictors of rising interest rates have moved buyers into the market. “If people are going to get in, they better get in,” Jerry says. “Inventory is down, almost scary low. There is not a lot out there.
As prices go up, the low interest rates still make it affordable to buy. You buy according to what you can afford. If rates go up, it makes a huge impact on what you can afford to buy. It isn’t only homes in Lynden selling well, as property – both residential and commercial has strengthened across north Whatcom County. The local uptick really started earlier this year with the prediction of higher interest rates by the end of 2016, and the initial wave of higher pricing on homes started in Bellingham and few months before moving north.

So if you are planning on buying a home you better jump right in! Contact a Muljat Group North Real Estate Broker today, 360-354-4242

Caliber Home Loans


John Larabell, Sr. Loan Consultant
Phone: 360.398.5846
Direct: 248.982.3598
We are proud to introduce, John Larabell, as our onsite local Caliber Home Loans representative. Whether you’re purchasing or refinancing your home, John, strives to make that process easy. Contact John today to learn more about competitive rates and fees and innovative mortgage solutions provided by Caliber. For more information, please visit: CALIBER HOME LOANS – John Larabell