Mortgage rates continue to defy forecasts, and are still below 4 percent. If you are thinking of buying a Marin County home, you may be wondering whether you would be better off acting now and purchasing a new home, or waiting until later.
Mortgage rates are so low, in fact, that the “Should I buy or should I rent” debate has changed for many U.S. consumers, and even more so in the San Francisco Bay Area where rents have increased at an unprecedented rate while mortgage rates have not.
Is the Sun Finally Setting on Low Interest Rates?
What does the future hold for mortgage rates in 2016? As reported in a KCM article earlier this week, the four major reporting agencies’ predictions for 2016 may make the decision for you. The chart below averages the predictions by quarter.
With the exception of Fannie Mae, the agencies forecast an increase in mortgage rates that would result in rates closer to 5 percent at the end of 2016. Whether or not you believe these projections, the important question is whether or not you are financially and emotionally ready to buy a home. I would strongly advise you however to keep a close eye on rates because as they move up, your purchasing power will go down. The best thing you can do now, even if you are uncertain about the timing of your purchase, is to get in touch with a lender and get prepared for the approval process.
Get Your Ducks in a Row Now For a Quick Loan Approval to Take Advantage of Current Rates
According to Dan Green of the Mortgage Reports, while some mortgage lenders may advertise that the approval process takes only 30 minutes, it can actually take two weeks or more, depending on the paperwork that is being requested.
During that two week period, your dream home is likely to be gone. To even stand a chance against other offers in today’s market , you should get pre-approved by your lender.
Dan explains that “Mortgage pre-approvals are dry runs; approvals based on an expected set of loan criteria which will eventually go to closing.” He adds: “During the pre-approval process, your lender will take a complete loan application which includes performing an income and asset verification, and he will account for specific loan traits which may affect your final approval such as your personal credit scores, any required child support payments, and the availability of a co-signer, as examples.
In fact, when a pre-approval is issued, about the only missing item is often the physical property address of the home being purchased.
To compensate for this lack of “real address,” lenders use dummy information based on probable loan data including sample purchase prices, sample real estate tax bills common for the area, and sample homeowners insurance policies and/or homeowners association assessments, where applicable.”
When a loan is “pre-approved”, a buyer can move immediately from the “Writing The Contract” to the “Underwriting The Loan” stage in the buying process.
This can save 7 or more days from the approval process and ensure your offer will be considered by the seller.
Spring Inventory of Homes Should Be More Plentiful This Year
While inventory of homes for sale has been painfully low for the past two years, the number of households that plan to sell this spring is reported to be the highest it’s been since 2007, setting up 2016’s spring and summer months to be the busiest they have been since 2006.
Whether you are planning on buying a home in Marin County this year, or wondering if it is the right time to jump in, feel free to contact me for a free, no pressure, no obligation consultation. I will be happy to answer your questions and give you the inside scoop on each neighborhood that may be right for you.. If need be, I will introduce to the best mortgage professionals in Marin.
About the Author: The above Real Estate article Is the Sun Finally Setting on Rock Bottom Interest Rates? was written by Sylvie Zolezzi. I am an award winning, top producing Realtor specializing in luxury residential real estate in beautiful Marin County, just north of the Golden Gate Bridge.
I offer a wide range of innovative and comprehensive real estate solutions for buyers, sellers and investors, attracting clients who demand excellence—in marketing, negotiations, market knowledge—and a genuine concern for their needs. My association with Decker Bullock Sotheby’s International Realty allows me to provide a high-end luxury experience to all my clients at every single price point. It also empowers me to leverage the unique combination of Sotheby’s global resources, Decker Bullock Sotheby’s International Realty’s growing market share and local knowledge with my unmatched social media networks to provide highly personalized service and unmatched exposure to my clients’ properties locally and worldwide.
I would welcome the opportunity to show you how I consistently get outstanding Real Estate results for my clients. I can be reached via email at Sylvie@YourPieceOfMarin.com or by phone/text at 415.505.4789.