As we head into San Diego's version of Fall, with humidity and heat still rampant throughout many parts of the county, the housing market continues to hold an advantage to sellers as buyers struggle with low inventory and a competitive market place with multiple offers. Interest rates have remained steadily low, hovering around 3.75%/3.97%APR* for a Conforming 30 year fixed loan.
Averaging less than 30 days on the market before active listings drop into pending with accepted offers, being prepared with pre-approvals, proof of funds and plenty of patience as buyers navigate the home buying process. What can buyers do heading into the San Diego housing market?
Preparation is Key:
Dot your I's and cross your T's. Obtain your mortgage loan pre-approval in advance. Gather bank statements that reflect your down payment and Earnest Money Deposit (EMD). If a family member is gifting you funds, have the Gift Letter from your lender ready to go. The competition is real. Cash is King. Buyers with financing need to be ready and organized to compete.
Understanding the demographics, housing statistics and other variables is vital to your offer. Working with a real estate agent that can explain and negotiate on your behalf can have an impact on your offer. Communicating with your agent is really, really important. Be clear in your budget and wants vs. needs list.
Try to keep purchases to minimum and refrain (as best you can) from obtaining new credit. Additional paperwork, Letters of Explanation and other items may be needed to determine your eligibility once new credit has been obtained or credit card increases are made. The lender is looking at your debt and income and calculating it on a ratio. Depending on the loan, it can be quite conservative. Make your current payments on time.
*Rate and APR based on today's interest rates September 19. 2017. Not all borrowers will qualify. Rates subject to change.
Loan Land-Here's how it's looking
Hovering in the high 3's and low 4% range today as we await the Federal Reserve announcement and the impact on the market. My conservative approach to rates kicks in and I say lock at your comfort level and leave gambling to the casinos.
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