Summer is finally here. And since summer is when many people take a bit of a breather, I thought it would be a good time to address the elephant in the room:
While our seller’s market seems to be cooling just a bit, we’re seeing the combination of inflation, rising prices, rising insurance and mortgage rates are pushing the limits of what many borrowers can afford.
What can you do to avoid buyer fatigue and help them address affordability concerns?
Here are my suggestions:
Tip #1: Be Prepared To Make Your Best Offer
There’s absolutely no substitute for being pre-approved right now before anyone goes house shopping.
If your borrower has a firm pre-approval in hand and knows exactly what their rate will be and exactly what their down payment requirements are, you have a much better chance of having their offer accepted on a home they can afford.
Anything less than a pre-approval opens you up to the deal going sideways to better offers, insurance issues or rate changes.
Tip #2: Keep Rate Perspective In Mind
Yes, rates are going up from the lows we will probably never see again in our lifetimes.
However, a 5% rate is still incredibly attractive from a historical perspective.
Additionally, remember that people will still live their lives… get married, have children, become empty nesters and all the other things that make life worth living.
Don’t get hung up on the 2% rates which made 2021 so interesting. That’s an aberration in the market. The equivalent of a blowout or going out of business sale. We may never see it again.
Tip #3: Update Your 203k Knowledge
A great way to help buyers get into a neighborhood they really want is by looking for a “fixer-upper” and going the 203k route.
203k loans allow us to finance the purchase of the home and the necessary renovations/improvements all in one easy package.
With “move-in ready” homes going for top dollar, this is a great alternative to explore to help borrowers afford a great home in the neighborhood they really want.
Everybody takes a breather in the summer. If we haven’t had a chance to connect in a bit, let’s get lunch or meet somewhere for a little outside time.
Get in touch with me today & I’ll fill you in on 203k loans and all the other ways we’re helping buyers still get homes despite the crazy market.