These days, the real estate market in San Ramon is on fire. The combination of low inventory and high demand has created an environment of multiple offers being placed on nearly every home that is for sale. Homes are going on and off the market in a matter of days. This is often a surprise for those who want to purchase a home. It is a whole new ballgame out there. What is the best way to approach the home buying situation in today’s market? You will need an edge
We are advising our clients to start at the bank before they begin looking at houses. Having a preapproval letter in hand from your lender will help you to move quickly when you are ready to submit an offer on a home you like.
Shop around for mortgage programs and rates and choose a bank and loan agent that you can build a business relationship with. If needed, your Realtor can recommend one for you. Be sure to go with a lender who is reputable and experienced. (If a program and rate sounds too good to be true, it probably is, so be sure to beware the fine print!) A loan agent can help decide how much you can afford to spend on a home, and what the mortgage payment might be. With loan and underwriting processes more stringent due to the mortgage crisis, the process may be more time consuming and involved than in previous years. Be prepared to gather documents such as tax returns, pay stubs, and bank statements.
With interest rates at historic lows, it is a great time to buy!
Just as an example, for every $100K you borrow, at a rate of 3.5%, you can expect a payment of $450 including principle and interest. Based on that estimate, if a home loan is $500K, your payment could be about $2250 per month. Interest rates like these are causing many folks to take a serious look at buying vs. renting.
Being pre-approved for a loan is crucial when putting in an offer on the home you’ve chosen. It shows the seller that you are serious, you are ready, and they don’t have to wait for you to get your financing together. Here in San Ramon, sellers and their agents are frequently faced with multiple offers.
When submitting an offer with a preapproval at hand, it offer will stand out as serious, and ready to buy with the funding available. There will be no delay for the loan process, and makes for a faster close on the deal. We have heard many stories from Realtors who, when faced with multiple offers, weed out the ones without a preapproval first. There can be significant time involved in waiting for someone to get financing together. Take the time beforehand to consult with a loan officer, and get your financial house in order. That’s the edge you need – preapprove before you move!
Contact Mona Koussa for recommended loan agents 925-831-9615