Better Buying Power
Don't let housing supply push you out of buying a home. Don't worry! You may have missed out on a highest and best offer this summer or even the opportunity to put in an offer on a home because of your credit. Guess what? You didn't miss out. You still have time to make up for lost hours searching and time spent working on your credit. The best is to come. Let me explain. According to Yun, the chief economist of the National Association of Realtors, Fixed mortgage rates could fall to 3.3% by the end of the year. This means, you will have better buying power in the fall going into winter. The lower the rate, the more you can afford. Your mortgage approval should increase by end of year.
Shopping in Cold Season - Buyers
As the season is cooler in the northeast, you you will find that there will be low inventory, low rates and less competition. Many buyers will go in buyer hybernation. As for those with home shopping still on their mind, he or she will find the best opportunity to come. First of all with the rates dropping, buyers will get a more affordable mortgage. I noticed in the are of which I have worked, such as Cherry Hill, NJ, homes that were $300k were drastically different than homes that fell below $280k. The difference of $20k was the difference of buying an outdated home versus a newly renovated home. This was difficult for my buyers when their prequalification fell below $300k. oving forward, the unfortunate thing is that home prices should be steady. Many are hoping for a price drop since that's what we are used to happening. According to researchers and economists, a fall in pricing doesn't seem likely anytime soon. What seems likely, is finding the right home and not feeling so rushed. If you were shopping during the summer of 2019 and fell short on a few missed opportunities, it was because it wasn't meant. Some people are actually happy after losing to a bidding war. I tell my clients all the time, that if it doesn't happen it's just not meant for you. There is something waiting for you around the corner. Looks like the around the corner time is coming up.
Selling in Cold Season - Sellers
If you still haven't sold your home, your chances will improve. It won't make sense to take a break during the fall and wait for next spring. This market is not like any other we have experienced. Yun believes weakening employment conditions and soft job gains will be the reason foe the Federal Reserves to cut interest rates this upcoming season. If your home didn't sell over the summer, fire the agent, hire a qualified agent who can market your property properly. There are a few other reasons why some homes may not have sold this summer. Most times it the strategy in pricing and exposure. For the amount of buyers that were out there this summer, any home priced riight and marketed right should have sold in the first 60-90 days. If it didn't, the seller should find new ways to choose their next Realtor. It's definitely not the location. Its obvious it was purchased before.
Did you miss the mark?
Applying for a loan can be confusing especialy when trying to finance a home. First of all, that type of loan is called a mortgage and there are so many things you should know when considering different programs. Although the idea is that you finance your home for 30 years, it doesn't always take 30 years to pay off a home. If you struggle in the credit area, you're not going to be able to take advantage of the drop in rates. I suggest you work on your credit until you have a middle score of 700 at least for the best rate opportunities. This will allow you to pay the least monthly payment required, because you are being charged less interest on the balance. If you are in the mid 600 range, you might be ok but you won't get the best rate out there.