While managing a Real Estate office I watched one of our agents work with some clients who wanted to buy a house and had gotten their pre-approval for a loan. The realtor's assumption was this couple, with that approval were actually ready to make the purchase. His clients continued to look for a house but unfortunately were taking longer than what the agent thought they would take. The clients were first time home buyers, purchasing an entry level house, which was really all that they could afford and in fact, barely qualified for the mortgage. Here is the kicker and something to always remember.
This couple failed to get locked in on an interest rate. Interest rates went up which would result in a higher monthly payment. They no longer qualified for a house in the price range they had really planned to buy in because the additional interest would put them over their pre-approved dollar figure. They were forced to look for something less than what they wanted. In their case they were nearly priced right out of the housing market.
It is a simple truth to remember: Every time interest rates rise, some people that would have been able to purchase a home will no longer be qualified, while others will learn they will qualify for less of a house than what they had anticipated before hand and actually believed they could afford. Why? The answer is simple: Perhaps someone is approved for a payment of $2,000 per month. Interest rates rise resulting in a payment of $2195 per month. If the individual buying the house was only eligible for a payment of $2,000, then they will now have to look for something that costs less.
I would never suggest to anyone that this is the time for you to buy because only you, as a prospective buyer, can determine the best time. On the other hand, interest rates are quite low, we are in a buyers market and the present inventory is giving us a wonderful selection of homes to choose from.
David Burrows
ERA Champion Realty, Fairfax, VA 22033
Burrows Properties
Sellers: I would encourage you to employ a Realtor to help you sell your home. When your agent or another agent is showing your house, go away and let them do your work for you. I also urge you to utilize my FREE SELLERS TOOLKIT before selling your house.
Buyers: I would encourage you to really check out anything and everything you are told by a well meaning seller. Employ the services of a Buyer's Agent to help you discern what you read and listen to about the area you are thinking of calling home. I would also urge you to get my FREE BUYERS TOOLKIT before heading out on the journey to find your new house.
Try this link to help you find your next home: Fairfax Homes For Sale When you land on the main page try one of our custom searches listed on the bottom of the page. No registration is necessary for the Fairfax MLS general search on my site. If you check the box to receive automated updates sent to your email, you will be required to give us your name and a valid email address.
Northern Virginia Information - Here you will find answers to your questions about schools, auto registration, taxes, things to do this weekend, popular destinations. It only takes a moment to look and it is free with no registration required!
This blog may contain links to other Web sites operated by third parties. These links are provided as a convenience to access the information contained therein. David Burrows and ERA Champion Realty have not reviewed all of the information on other sites and disclaim any responsibility for the content of any other sites or the products or services that may be offered on or through those sites. Inclusion of a link to another site does not indicate any endorsement or approval of the site or its content.
David Burrows and ERA Champion Realty disclaim liability for any damages or losses, direct or indirect, that may result from use of or reliance on information contained in this blog.
Comments(0)