Happy holidays all! I recently ran in to Santa having his
sleigh tuned up at Don and Ryan’s CARSTAR on 70th and Q Street. We
would like to remind everyone to stay safe during the next couple weeks.
Christmas can be a time of celebrations and parties with friends and families,
but holiday revelers must remember to remain responsible amidst all of the
holiday cheer.
If you have had a little too much eggnog, don’t drive drunk.
Designate a sober ride if you are attending Christmas festivities; just
remember to put a little extra in their stocking come Christmas Eve. In Omaha,
the law firm Hauptman O’Brien is once again offering their complimentary Safe
Ride Home Program. Visit
their website to get more details.
Also, if you are checking the newest eCards on your
smartphone or sending a holly, jolly text to a loved one, don’t do it while you
are behind the wheel. Even the most sincere Holiday message can wait until your
car is parked.
Again have a safe and happy holidays! If you have any
questions, please feel free to contact your Mortgage Doctor Terry Williams at (402)
301-4500 or email me at terry@terrywilliams.com.
For many, the holidays are a time of family reunions, hearty
meals, gifts and laughter. For others though, the winter months can be bleak.
That’s why The Mortgage Doctor is asking you to take some time out this holiday
season to help out the less fortunate. Whether you give food, money or time,
you can bring joy to those that most need it.
The Omaha area has many different organizations that help
those in need. The following are just a few. Just click on each link to
discover how you can help.
If you have any questions about how you can help those in
need this holiday season or if you have any mortgage needs, feel free to
contact me at (402) 301-4500. The Mortgage Doctor asks you to open up your
wallets, pantries and hearts!
Watch on your mobile device >> Other than the age-old trend of people buying homes more so in the spring season as opposed to the fall and winter, there really is no reason that one might choose one season over the other. Sure, there may be more homes on the market – but equally there are as many more buyers circuiting the market too.
The question prospective buyers ought to be asking themselves is whether or not they would prefer buying a home that is right for them regardless of the time of year or does it just suit them more to buy when it’s warmer outside?
Spring Is In the Air – And So Is Much More Competition
Many buyers like to be out shopping for a new home at a time that they feel there are a lot more homes on the market. But one very important thing to consider is that there are equally as many other buyers out there also looking. And with a greater number of buyers at any given time, there’s a good chance you will come across more buyers looking for the same type of property that you are seeking.
So when the perfect home shows up on the market, in great condition and priced just right – you guessed it – more than one buyer will likely show up to make an offer on it. What does that do to your chances of securing the home of your dreams? Having multiple buyers vying for the same property dilutes your chances a good amount. Not only will you find a greater likelihood of competing against another buyers’ bid but you will also face the risk of multiple offers and ultimately a bidding war. Despite the low, low interest rates, the last thing any buyer wants is to deal with artificially inflated prices.
Real Estate Market in Fall and Winter Slows Down But Doesn’t Stop
Contrary to what many people believe, the real estate market does not stop during the cooler months of the year – rather it just slows down a little. But this can work in buyers’ favor when you consider that there is fewer buying competition to contend with. Yes there are fewer homes on the market since the same people that believe springtime is a better time for real estate also remove their homes from the market. However, with fewer sellers there are also fewer buyers which means that when you do find the perfect home there is a much better chance at successfully closing the deal – and without all the hoopla that goes along with multiple offers or bidding wars.
Consider also that by the time the holidays begin to roll around, many sellers have had their property on the market for one, two or even more months and they are eager to sell. This translates to their willingness to negotiate more than ever before. ~ With today’s record setting low interest rates and with them the very low cost of borrowing money combined with increased buying power, it only makes sense to jump off the fence and embark on your home buying journey. We invite you to contact us today so we can begin helping you find your perfect home.
As Hurricane Sandy devastates the East Coast, we first must
send our thoughts and prayers to everyone affected by this tragedy. As we move forward, no matter where you are,
you must prepare for a disaster to occur in your community. Hoping for the best, yet planning for the
worst can save lives.
Make a Plan
Having a plan set in place is the best way to
avert disaster in times of crisis.
First, have a family meeting so everyone is on the same page. Establish the best escape routes from your
home and pick a place to meet after everyone is out of harm’s way. If you have small children, make sure they
know how to spell their last name, an adult’s contact phone number, and how to
dial 9-1-1 in case they become separated.
Mark your calendars to review your plan every six months.
Stock Up
You should keep enough supplies at home to meet
the needs of you and your family for at least 3 days. This includes water, dry food, dry clothes,
battery powered radio, flashlight with extra batteries and a first aid
kit. If you purchase these items in
small quantities at a time and stow them away for use solely in an emergency,
it need not be expensive and you need not encounter the crowds that descend
upon retail stores in the days and hours before a disaster strikes.
To get more tips on how to safely prepare your family for
disaster, click
here.
Also, FEMA has a guide book you can go through with your
family for basic disaster preparedness, which you can view here.
As
the mortgage doctor, I promote healthy living. Healthy living includes
financial health, physical health, and mental health. A new video
feature I’m offering, I will be giving you tips on how to improve these
three aspects of your lifestyle. We are going to begin with physical
health and I am going to show you how to make a delicious, nutritious
cucumber salsa. It’s easy, inexpensive, and
healthy!
Directions: Cut cucumber into bite-size wedges. Put
cucumber into bowl. Drain can of Ro*tel tomatoes and add to bowl. Add
package of Ranch dressing to mix. Stir. And enjoy! Go to “The Mortgage Doctor” Facebook fan page and add your own recipe for healthy living for your chance to win a
$20 Target gift card.
Pay Off YOUR Debt, NOW! The only way to raise a credit score is to pay off your debt or at least reduce it to an acceptable level! I
recommend paying off high interest rate credit card debt first.They
can suck the life out of your finances! As for those, "magic cure"
credit repair commercials you hear and see promising a quick fix, their
scam is even greater than high interest rate scam your credit card
company is charging you!
What
steps do you need to take to build your credit score to the highest
level possible? How can you secure a mortgage with a lower interest
rate? Use my common sense guidelines provided below to get rid of the
debts that have reeked havoc on your chances for a lower-interest
mortgage on your dream home.
1.) Pay Your Bills on Time – All the Time! I
know, I know – this isn’t always easy. But, lenders of all kinds look
for reliability on your part. Since loaning money is a risk for them,
they look for signs that you have a reliable income and the discipline
to pay your bills over time. When they see those signs, they say to
themselves, “Hmmm, this person looks like a good risk to me; therefore,
he or she deserves a lower interest rate.”
2.) Do Not – I Repeat! – Do Not Open Unnecessary Credit Cards!
People sometimes open credit card accounts in order to increase their available credit.Absolutely avoid this temptation! It’s
simply too darned easy to charge for items you don’t really need, and,
before you know it, you’re back in debt or have increased it to an
unreasonable degree.
3.) Budget, Budget, Budget!
Financially, this is possibly the most “unsexy” task
there is, and yet it’s the most vital and important one you can
possibly undertake! YOU need to figure out where you stand financially. Budgeting will allow you to get rid of debt, improve your credit score, and shape a low interest rate financial future for you!
4.) How Much Debt is Too Much?
Here’s the first question to ask yourself in terms of budgeting: How much debt is too much?
Actually,
there’s a standard financial formula that allows you to answer that
question. This formula is called the debt to income ratio, and what it
does is measure your net monthly income against your debt.
Here’s an example:
"George” has a net monthly income of $2000 and his monthly debt payments are $500.
So, to get his debt-to-income ratio, George divides $500 by $2000 and gets this ratio:
500÷2000 =.25 (25%) Is this a good ratio?
Well,
financial experts generally agree that debt expenses should be 25% or
less of your income. George’s ratio is reasonable but could be
better.So, what’s the ratio of your debt to your income? Figure that out
by taking the next step.
5.) Calculate Your Debt-to-Income Ratio
You can answer that question by completing the following tasks:
Task 1:
Analyze your bills from the last month. Add up all the fixed expense
items (rent, mortgage, car payments, child support, loan payments, etc.)
Task 2: Review your credit card bills and add up the minimum payments owed on each card.
Task 3: Figure out your monthly take-home pay (net salary).
Task 4: Divide your monthly fixed expenses by your monthly income to get your debt-to-income ratio.
What
percentage did you get? If it’s 25% or greater, then it’s definitely
time to budget in order to reduce or eliminate your debt.
I’d be happy to discuss some more in-depth budgeting tips and provide you with information on mortgages at the same time!
The Federal Housing Agency (FHA) doesn’t directly offer loans. Instead, its purpose is to provide mortgage insurance for Americans to purchase or refinance a principal residence. To put it another way, the mortgage loans are funded by private lending institutions (mortgage companies, banks, savings and loan associations, etc.), and those mortgages are then insured by FHA/HUD.
The Benefits of FHA Loans
If you qualify as a prospective homeowner, these loans have three great benefits. First of all, your down payments are lower. Second, closing costs are also lower. And, finally, it’s easier to qualify for credit.
Who Qualifies?
FHA has programs for:
• First-home buyers • Seniors • Fixer uppers • Manufactured housing and mobile homes • Energy efficiency, etc.
If you’re a first-time home buyer, a FHA loan can be a good deal for you. See the eligibility requirements below. Later, I’ll cover the fixer-upper category requirements. Check with the FHA on other programs.
First-Home Buyer Programs
These programs have the following eligibility requirements:
• You must meet standard FHA credit qualifications (judged by the individual’s credit record). • You’re eligible for approximately 97% financing. • You’re able to finance the upfront mortgage insurance premium into the mortgage. • You’re also responsible for paying an annual premium. • Within this category, the eligible properties are one-to-four unit structures. As of this writing, the highest maximum FHA mortgage is $362,790 while the lowest maximum amount is $200,160.
The 203(k) Program for Fixer-Uppers The 203(k) program issues loans to allow you to buy or refinance a property. In the loan, you can also include the cost of making the repairs and improvements.
The loans are provided through approved mortgage lenders nationwide, and they’re available to buyers wanting to occupy the home.
The down payment requirement for an owner-occupant (or a nonprofit organization or government agency) equals about 3% of the acquisition and repair costs of the property.
There are several steps to obtaining such a loan:
• You find a fixer-upper and sign a sales contract after doing a feasibility analysis of the property with a realtor. • The contract should state that you’re seeking a 203(k) loan. It should also state the contract is contingent on loan approval based on additional required repairs by the FHA or the lender. • You then select an FHA-approved 203(k) lender and arrange for a detailed proposal showing the scope of work to be done. The proposal should include a detailed cost estimate on each repair or improvement of the project. • The appraisal determines the value of the property after renovation. • If you pass the lender's credit-worthiness test, the loan closes for an amount that will cover the purchase or refinance cost of the property, the remodeling costs and the allowable closing costs. • The amount of the loan also includes a contingency reserve of 10% to 20% of the total remodeling costs. It’s used to cover any extra work not included in the original proposal. • At closing, the seller of the property is paid off and the remaining funds are put in an escrow account to pay for the repairs and improvements during the rehabilitation period. • The mortgage payments and remodeling begin after the loan closes.
You can decide to have up to six mortgage payments (PITI) put into the cost of rehabilitation if the property is not going to be occupied during construction, but it cannot exceed the length of time it’s estimated to take to complete the rehab.
• Escrowed funds are released to the contractor during construction through a series of draw requests for completed work. • To ensure completion of the job, 10% of each draw is held back; this money is paid after the lender determines there will be no liens on the property.
Whew, somewhat complicated, isn’t it? Well, we’re dealing with a government program! But, FHA loans can be a good deal for you, and I’m available to guide you throughout the entire process. Just give me a call today!
Special thanks to Judy Tolliver of American Electronics for participating in this week's blog. You can contact her at 402.895.1800 or jtolliver@ae4u.com.
The best thing you can do to avoid a burglary is to take steps that will deter a potential burglar. National statistics point to one thing that makes a burglar choose one home from another – and it is almost always a home’s approachability. If you have a home that seems occupied, chances are a thief will head in the other direction. Likewise, if you are protected by a security system a burglar will shy away from approaching your home.
In short, the easier you make it for them to enter, the greater the chance you will have an intruder approaching your home. Here are some tips provided by our security expert that will help you to avoid a bad situation entirely.
Install a Peephole in Your Door
If your door doesn’t already have one, have a peephole installed and ideally one with a one-way view. Not only does it provide you the added protection of being able to clearly see who is at your door but also it acts as a deterrent to thieves that do not want to be identifiable.
Take Extra Precautions to Lock and Reinforce Doors
It may sound like common sense but a surprising number of thieves enter homes with unlocked doors, windows or other access and entry points. In fact, statistics report that a staggering forty percent of home invasions take place in situations where the homeowner was not careful about locking windows and doors.
Be Watchful of Garage Doors and Their Openers
A very common practice for homeowners is to house their garage door opener in a very convenient, accessible place – usually right near the interior entry door to the home. The problem with that is that it’s very predictable and easily accessible to a potential burglar too. Not only does our expert recommend keeping all garage door access points closed but also it is strongly suggested to house your garage door opener in an inconspicuous place.
Be Prepared With a Plan
In case the unthinkable does happen, the best defense you and your family can have is to be prepared with a plan that outlines exactly what you will do in case an intruder breaks in. If possible, set up a safe room with a cell phone that can be used to call authorities. For families with children, you should practice a drill just as you would in case of a fire plan.
Get the Added Protection of a Security System
These days, security systems have come a long way from just twenty years ago. With remote viewing access and the ability to adjust things like heat, lights and locks from afar – there are added protective measures you can take. A security company sign acts as a strong deterrent to ward off criminals, giving you protection on top of the expected monitoring you will receive from the company. Most systems have a panic button set up to instantly call the police when triggered.
Take Extra Care When Away on Vacation
Burglars usually prowl neighborhoods looking for people that are gone away on vacation or for extended periods of time. Some things you can do to help prevent them coming to your home include setting lights, music and TV on a timer so as to make it look as if someone is home. You can also secure sliding doors with pins to prevent horizontal and vertical movement. Keep newspaper and mail deliveries going but ask a neighbor to pick your items up. Neighbors can also park their vehicles in your driveway for the illusion that someone is home.
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For more tips on how you can live safely and prevent a home intrusion, contact your security company today. As your trusted advisor, I have several excellent resources available as well. Stay safe!
There is a lot of confusion centered on the health care bill’s impact on real estate transactions and the talk is not exactly accurate. Let me first clarify one thing: yes there is a new tax on real estate. But what most people don’t tell you is that the tax is only on applied profits earned above and beyond the capital gains tax limits and this is not a blanket tax applied to all real estate sales.
Additional Taxation Only on Applicable Capital Gains
First, let me explain the capital gains tax limits in the State of Nebraska. Like most states, we have a $250,000 threshold on capital gains for single persons and a $500,000 cap for married couples. What that means is that if you are a single person and after the sale of your home if there is a profit over and beyond $250,000 – that amount will be taxed an additional 3.8%. Let’s go over this with an example. Say you bought a home for $300,000 and then sold it for $375,000. The profit amounts to only $75,000 (well within the $250,000 limit for non-married property owners) so you will not be taxed on that profit.
Now, here is an example of a married couple that sold their lakefront home: Originally bought in 2002 for $100,000. They renovated the home and now it is a gorgeous and very desirable property. Assuming that other homes consistently gained value and sold for a lot more in recent years, the couple in our example sold their home for $650,000 (Wow! Show me an investment opportunity like THAT!). This couple received a total of $550,000 profit on the sale of their home and given the $500,000 married people exemption on capital gains, the taxable amount would be $50,000. How much does it add up to? The total amount of additional tax this couple will pay at 3.8% would be a mere $1,900 – a far cry from the thousands of dollars the rumors would have you believe.
Generous Income Requirements Prior to Tax Imposition
Another important aspect of the new real estate taxes is that the tax only applies to individuals with at least a $200,000 annual income and couples with a joint income of at least $250,000. That automatically eliminates about 97% of the American population right there.
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So you see? It’s not all that bad. The only thing I can think of that is important to remember about the capital gains tax exemption is that it must be a primary residence of the person or people filing for the exemption. Here is a document generated by the National Association of Realtors with some more scenarios showing how the real estate tax would impact people.
Believe me, your down payment on a new home affects nearly everything you can think of in the buying process - the loan programs you're able to qualify for, the size of the interest rate, the amount of closing costs, etc.
The basic rule is this: the more you have to put down on a down payment for a home, the more options you have!
This rule is true because, like all lenders, mortgage lenders dislike risk. They're in the business of making money by lending money. So, the more money you put down, the lower the risk, and the more lenders like your deal.
And, that's not all. If you have enough cash for a large down payment, then more choices open up to you! You can choose conventional fixed rate loans, adjustable rate mortgages, VA, FHA, graduated payment mortgages and all the variations of each of these programs. By the way, when you combine a good-to-excellent credit score with a large down payment, you'll definitely get positive attention from loan officers!
Acceptable Sources for Down Payment Monies
In general, lenders want to see adequate funds available for a period of at least sixty (60) days in your account. The usual methods of proof of these funds are either a Verification of Deposit form or two months' worth of your most recent bank account statements.
So, if you're person who keeps money "under the mattress" or somewhere in your home, this isn't acceptable. It has to be deposited in an account (bank or investment) for at least two months (preferably longer).
In technical terms, this is called "seasoning." And the reason behind it is this: First, by having money in an account, it shows you have to ability and discipline to save money and, thus, are a good risk from the lender's point of view. Second, it demonstrates that the money is likely yours and not a personal loan from a family member or a friend. Lastly, and obviously, it shows you have enough money on hand for a down payment.
In general, here are sources you can use for a down payment:
• Checking account • Savings account • 401k account • IRA account (have to meet specific guidelines) • Money market account • Stocks • Bonds • Mutual funds • Certificates of deposit and other liquid assets. • Sale of an asset, etc.
Frankly, in this New Age of Frugality, the safest method is to simply save the money for a down payment. This teaches you financial discipline which is good for all aspects of your life, and it means you don't have to rob other assets to pay the down payment. I'd be happy to discuss and suggest many different ways of obtaining down payment money. Contact me today.
Want to break your heart and your bank account at the same time? Then buy a new home based on the fact that you've fallen in love with it! Needless to say, you should never do this! In some cases, when you fall in love with the "pretty face" of a house, you fail to look underneath and find problems like bad wiring, leaky roofs, bad foundations, etc. This is an extremely expensive way to buy a home! A funny and sad example of this is shown in the 1986 film, The Money Pit, starring Tom Hanks and Shelley Long. They make the mistake of falling in love with a home and think they're getting a $1,000,000 property for only $200,000. Once they get into the home, they find out it'll cost a million to repair it! It's got wood rot, a bad roof, bad plumbing, bad electricity, even bad raccoons! Well, that's Hollywood exaggeration, of course. After all, The Money Pit was a comedy. But, when things like that happen to you, it's no joke. Repairs can cost you a lot of money and heartache, not to mention dangerously rising blood pressure! So, again, never ever fall in love with a house at first sight! Easier said than done, you say? How do you avoid this tendency? Below, I offer some solutions to the problem! Solutions 1: Get Cold Hard Facts about the Home! When I talk about "cold, hard facts," I'm talking about getting the house evaluated by a certified home inspector. It's well worth the money to have this job done because the inspector will cast the objective eye you lack on the property.He or she will evaluate every aspect of a house - roof, plumbing, wiring, foundation, etc.
And then, that inspector will provide you with a written report that may range anywhere from 20 to 50 pages. It will give you a point-by-point summary of what needs to be corrected. The cost of a home inspection varies with the region of the country. Nationally, they range from $200 to $400.But, for the investment of, say, $200, you prevent yourself from losing thousands of dollars in repairs in two ways.One, you can simply walk away from the deal. Or, two, you can require that seller fix all items before you sign a contract! Bonus: Often, you can ask that the seller pay for the home inspection! Solution 2: Cool Off and Take Your Time! Infatuation with a home is fun and exciting, and you can have the overwhelming temptation to buy an attractive home practically "on the spot." My advice - walk away and come back several hours later, especially after you've viewed other properties! By then, it's likely you'll have a more objective eye. Solution 3: Keep It Simple! By this I mean that you should stick within your price range. You want the best hom e at the best price within your means! So, if you see an outwardly gorgeous home at, say, $10,000 above your price limit, say,"I love you, but you're way too pricey for me!"and walk away from the temptation! Solution 4: Rely on Your Realtor! At heart, I and other professional realtors like me, want you to have a home that meets your needs in the best way possible. That means preventing you from buying a home that's in substandard shape and/or beyond your means. To be perfectly blunt about it, I rely on great word of mouth from satisfied customers to make the most of my real estate career. So, you have my promise that I'll do my absolute best to get you into the house of your affordable dreams! Need that objective eye to help you make a smart home-buying decision? Contact us today.
Omaha, Nebraska is a summer gem hidden in the Heartland of America. Activities abound for those living in the metro area or looking for a weekend get-away. Great food, outdoor activities, baseball, and culture are just some of the options open to those who wish to soak up the summer sun and dive into “The Big O.”
The Omaha Henry Doorly Zoo is one of the most heralded zoos in the country and Omaha’s premier family destination. Offering state of the art exhibits and an array of animals from around the globe, a trip to the Henry Doorly Zoo is a memory that is sure to stay with any visitor, young or old.
The Omaha Farmer’s Market occurs throughout the summer on Saturday and Sunday mornings. Customers stroll among the outdoor stands and are able to peruse and choose from the freshest fruit and vegetables from America’s Breadbasket. The annual Taste of Omaha showcases the best food in the area right on the scenic Missouri River waterfront.
Every June, college baseball teams and their fans travel from coast to coast to witness collegiate athletics in its highest form for the NCAA College World Series. Known as “The Greatest Show on Dirt,” the CWS was played annually at Johnny Rosenblatt Stadium for 60 years. Last year, the tournament moved to a new 21st century facility named TD Ameritrade Park in Omaha’s North Downtown, or NoDo, region. Children will enjoy the excitement on and off the field as well as an ice cream cone from the world famous Zesto’s. For adults looking to enjoy a night on the town, there is no bigger week than the CWS. The bars right around the baseball park, in the Old Market, or on Leavenworth Street are always packed with enthusiastic locals and tourists having a great time and making new friends.
This year, Omaha will host the 2012 Olympic Swim Trials. Some of the most famous American Olympians will be coming to Omaha to start their quest for the gold. The 8 day event will be showcased live on primetime television, bringing Omaha into the nation’s spotlight before the London Games.
The Cox Classic at Champions Golf Course brings in some of the brightest up and coming stars in the PGA-Nationwide Tour. Before the exciting weekend conclusion to the tournament, lessons and camps are offered to youngsters looking to get on the links and improve their budding golf game.
The Omaha-metro area offers any outdoor lover numerous opportunities to get out and enjoy the sun. Boating and jet-skiing are available at Carter Lake, Lake Manawa, and the Missouri River for the aquatic enthusiast. Mahoney State Park,DeSoto Wildlife Refuge and Fontenelle Forest offer miles of hiking trails for those looking to get off the beaten path. Dozens of events geared toward the runner and cycler are taking place all summer in the metro area at places like the Wabash Trail and Big Papio Trail. The Joslyn Art Museum, Durham Western Heritage Museum and the Omaha Children’s Museum offer fun and educational exhibits to all. Shakespeare on the Green performs the playwright’s great works in the comfortable night air. TheOrpheum Theatre brings in some of the hottest acts from Broadway such as Wicked and Jersey Boys.
Most people have probably already figured out that in real estate, market conditions are as good as anybody’s guess but there is something to be said for watching trends. And the trends lately have been pointing to a slowly (but steadily) recovering market in many areas across the nation.
When just a year ago it seemed next to impossible to sell a home, fast forward to the current marketplace and the tables have turned almost completely. In many cities there just are not enough homes for buyers to browse. Buyers are scrambling to see homes on display in open houses before the properties are even listed, in the hopes of getting in on one of the “good” homes still available.
Record-Setting Interest Rates Have Buyers Hopeful
Just when they started getting used to calling all the shots in the vast majority of buyer-controlled markets across America, buyers are not dealing with the shock of dealing not enough properties to choose from. Interest rates that are at levels rivaling those from 60 years ago are driving buyers’ desires to sign on the dotted line to become homeowners now. But what is to be said when there are not enough properties to go around?
Inventory Levels Pre-Dating 2007 Numbers Has Put Sellers In Control
For the first time in over five years, the number of available homes is dwindling down to levels that we were used to seeing prior to the big housing market crash of 2007. According to the National Association of Realtors the last time we saw such a low number of active property listings was in April of 2006.
Multiple Offer Situations Causing Bidding Wars to Erupt
What do you get when there are a lot of buyers that want a choice few properties that seem perfect? You get lots of people vying for the same property and inundating the sellers with multiple offers. For the first time in years in a lot of areas, sellers can expect to get at or near asking sales price. In fact, when bidding wars start to take place, the sales price often jumps higher than the list price.
Savvy Buyers Preempting Property Rush By Obtaining Pre-Approvals
In an effort to thwart the swarm of buyers already on the prowl, many savvy hopeful homeowners are rushing to lenders and obtaining pre-approvals for added leverage. Once they find the right home – priced well and located in a good locale – they are ready to go and can often get a head start on other buyers that have not obtained pre-approvals. A letter from a prospective lender does more than just serve as added leverage for buyers while shopping for their dream homes. It also provides a realistic benchmark of what they can afford while shaving off valuable time once an offer is made on the property.
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No one can predict where the market will be one month from now but for the countless buyers that are out there trying to lock in phenomenal rates and low home prices – the time is now to get pre-approved and start making successful offers!
