Three Tips for a Hot Real Estate Market That Can Keep Your Results High
The market is still HOT HOT HOT although it is cooling down some. Inventory is down as much as 35% in some areas, which means fewer houses available.
That’s giving sellers more confidence to stick with a higher price. If you like “low ball offers,” watch out! Your strategy has been a pit in the stomach of sellers for the past 4 years. They’ve been waiting to use your offer for kindling on a cold night, and now they’re finally able to do it!
1. Work with local, PROFESSIONAL
Realtors and Lenders. I know Trulia and Zillow would tell you differently. I know your last Realtor didn’t do anything for you. I also know that statistics show you will get a better price, save time, be protected on the contract, and have a more enjoyable expe-rience if you use a PROFESSIONAL on both ends of the transaction. Your Aunt Susie’s cousin who lives 4 states away and sold homes like hot cakes (according to them) 4 years ago is NOT a Professional!
• They can RECOMMEND a good lender. While it’s true many agents fear the liability involved in recom-mending just one lender, they will recommend their trusted expert if you push for it.
The signs and benefits of a good lender are similar:
• They KNOW the basis of mortgage rates: Mortgage Backed Securities or Mortgage Bonds. If you ask them, “what’s the basis of mortgage rates,” and they say “treasuries” or just go blank, hang up and save your time!
• They ASK how long you plan to live in the home, which helps determine whether you should buy down your rate and what loan terms you should consider.
• They OFFER a Top Score program. Even if you have a 719 credit score, 1 point may save you as much as .125% in rate or hundreds of dollars in clos-ing costs.
• They WORK with local Real Estate Professionals. If Realtors trust this person with their clients, they’ll at least close your loan on time.
2. Be prepared!
Know the lender’s requirements before you start the process:
Review you credit now at www.annualcreditreport.com or with
your lender before looking for a home. This early start gives you more time to improve your credit score to get the best terms available once you do find a house. For this reason many buyers find a lender first.
Make sure your documentation is in or-der at the start. You’re buying in a Post Financial Crisis world. Don’t get upset when you get asked for more informa-tion than you’ve ever had to divulge. Have it already available. See this Forbes Article for more details on the what and why behind these new requirements.
This new reality means it’s even more important to work with a reputable, professional lender since s/he will know more about you than 99% of everyone else in your life. Once you find that per-son, be open and honest, telling them EVERYTHING up front, such as unre-imbursed business expenses or the car you just bought that hasn’t shown up on credit yet. Bring it up at the beginning or be prepared for delays at closing that could add a ton of stress to an already intense process.
Don’t buy ANY big ticket items (furni-ture, car, tv) on a credit card from the time you apply for a loan to the time you fund on it without telling your lender. These things affect your debt-to-income ratio and will have to be addressed, so avoid them or make sure you tell your lender.
3. Be Patient.
I know you get upset when your texts take more than 1.5 seconds to load. Me too. But this is one deal not to rush. Buying a house is like preparing for a wedding. A wedding is a ton of work involving figuring out who is invited, working with family, finding a location, and on and on. Similarly, 27 people and 8 different companies work on each transaction on average. Give yourself breathing room (no 10 day contracts) and avoid closing on the last day of the month if possible. Close 2 days earlier or later, and the Title Company will be much less busy.
Work with a professional.
Be prepared.
Be patient.
If you do these things, you’ll be ready and able to grab the RIGHT deal at the RIGHT time, and that’s why you’re go-ing through all of this anyway.
All blog information is of the opinion of the Loan Officer and is not supported by Fairway Independent Mortgage Corporation
