ATTENTION! ATTENTION!!
ADD THESE ALL TOGETHER.
WHAT DO YOU GET?
LOST tax credits + RISING Home Prices + RISING Interest Rates
ANSWER: VERY SAD HOME BUYERS AND HOME OWNERS!
This morning's market reports were up ... down ... up ... down ... all over the place. If you have been paying attention and following these reports and media accounts, you already know that predict
ions are ... rates are climbing and predicted to continue to do so.
If you are in need of cold hard facts regarding the financial loss you will suffer should you wait too long for better rates ... talk to a lender today! These numbers will hit you right between the eyes like a hammer. Waiting can be extremely costly and painful to your piggy bank.
Still Need Proof? Have a lender work the numbers for you. See what a small increase in rate will cost you in dollars over the life of your loan. You will be floored. The numbers are staggering.
Now, I totally understand that committing to a home ... to a loan ... is a big undertaking. I understand that you want and need the mortgage terms that are most advantageous for your financial scenario. But if the experts are correct ... rates are predicted to rise.
I also understand (if you have started the process) that complying with the many requests you are receiving for documentation, information, and application can be somewhat overwhelming. But dragging your feet or complaining about the requests will not change the requirements to get your loan closed. Lending Underwriters will still demand the same things no matter how long you wait. You only end up potentially hurti
ng yourself with the delays.
If you haven't contacted a lender, do so now. Get the facts. Start the process soon. Today's reality is that loans are not processed and closed in the same amount of time as in the past. It takes longer. It also requires more work from and cooperation between all parties.
Especially if you are hoping to take advantage of the extended tax credit for first-time home buyers or new tax credit for "move up" buyers, time is of the essence. Starting the process now will help insure that your closing will occur within the required time frame to receive the benefits. This is even more true if you are interested in buying a "challenged" home such as a Short Sale or Foreclosure. (For additional information on the new tax credits, see this helpful IRS video: http://www.youtube.com/watch?v=GkzB03uuGlg)
The key to savings and the success of your new home search and lending is communication between all parties involved, especially your mortgage banker. Find and work with someone you know is a professional, knowledgeable, and trustworthy. Develop the rapport and communication with them that is pivotal to your success.
ATTENTION! ATTENTION! DO IT NOW!
Gene Mundt, Sr. Vice President
Personal NMLS #216987
The Federal Savings Bank
1823 Centre Point Circle, Naperville, IL 60563
Skype! 630-219-1316
Isn't a 5-alarm fire the most serious? Serious buyers definitely need to be moving now. Great points, Gene.
Gene ~ Thanks for sharing such a great points.
There is so much to choose from. Mortgage rates reached 50 year low.
Jane: Yep! Exactly my point! Right now I'm seeing so many that just won't make that decision ... and I'm trying to give them positive reasons to take the plunge. Thousands of dollars lost ... I would think that would do it ...
Haris: I think the fact that rates have remained relatively steady and so low has lulled many into complacency. I fear it's coming to an end and it will mean many will lose the chance to own in the near future. Thanks for taking the time to read the post ...
Gene
Hello Gene,
Thank you for your terrific post alerting buyers not to wait! Your points were excellent! Thank you for sharing the information. Have a great weekend!
Rita
Rita: Thanks for your kind words! I'm hoping the messages gets to those that really need to hear it ...
Gene
Hi Gene! I frequently "run the numbers" with buyers showing them what a difference a 1% increase in the interest rate will do to their monthly payment. In some price ranges it can actually move the buyers down a notch in terms of the price they can consider offering. Sellers care about price...buyers should care about cost!
SarahGray: I have no doubt in my mind that your customers are extremely well-versed on every facet of their transaction. I also do not doubt that you are fully engaged with the other professionals involved within that transaction. Everyone involved fully informed and educated ... no matter which side of the deal you'd represent.
I am always saddened when a buyer ... in earnest trying to make the right decision ... out-thinks themselves and the process, thus losing out on a better rate and terms. Understanding the process like we do ... we understand just how much their waffling ultimately cost them. You can't help but be upset on their behalf.
We can only do our best ... and hopfully those we represent are better off for using our services and seeking our counsel ...
Gene
Hi Gene, wouldn't it be great if potential buyers really heard the bell...rates will go up sooner than we like. Like Sarah shared, 1% can sure make a difference.
Teral: Sad but true ... even minor rate adjustments can cause real damage to the bottom line ... and even influence the outcome of approval vs non-approval. Hopefully, we can get that message across ...
Thanks for writing and sharing ...
Gene