Someone somewhere turned the light on, finally! Buyers are coming off the sidelines and sales activity is picking up, as we have been predicting since last year.
RATES AND THE MARKET
Although rates are still holding steady fairly close to 7%, we
are seeing much more application activity in the last two months. We still expect to see the Fed reduce the Fed
funds rate by June, although we continue to see mixed economic indicators. Inventory
remains on the low side, keeping home prices up in most markets.
BE A “SCOUT” AND BE PREPARED!
With the recent increase in activity, we are getting more and
more phone calls that go like this: “Hi,
how are you? I need a pre-approval
letter today so I can see a property that was just listed” or even worse, “I need a pre-approval letter now,
so I can make an offer.”
Preapproval letters do not grow on trees--- and are
not automatically issued (at least not by ethical lenders) upon request. We always
perform our due diligence and review bank statements, W2s, paystubs, and tax
returns as applicable, depending on income streams. We pull a “soft” credit report
and run automated underwriting on most loans for “automated loan approval.” This can take us a day or two, depending on
workflow and the speed with which clients provide us the documentation needed.
Please contact us early on so you are prepared to pounce
when you find the right property. That
way, you won't miss out because you did not get your preapproval the same day
you asked.
Further, we oftentimes work for a month or twelve with
clients on credit repair, increasing savings, accessing gift funds or down
payment assistance, car loan payoffs, etc.
REMINDER FOR SELF-EMPLOYEDS
Our self-employed borrowers face special challenges. Their income streams are typically more complicated,
and oftentimes they have more latitude on the amount of expenses they deduct
from income. This can make or break a
purchase or refinance loan.
We always want to review your business and individual tax returns
PRIOR TO FILING. This way we can be
certain you will qualify for the loan you desire. We like to collaborate with your tax preparer
and/or CPA to coordinate for a successful loan transaction.
Recently a client who was fully pre-approved went ahead and filed
his 2023 returns--showing less income with more expenses, and we had to cut his
loan amount after he was ready to make an offer. Don’t be that client!
I recently visited my sister and her chickens. We love the fresh eggs they provide!
Welcome to spring and daylight savings! YAY!!!
As always, call us with questions!
Karen, Katie and Stephanie
