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Getting the Upper Edge in a Competitive Real Estate Market



You may have heard on the news that this spring has become a sellers’ market. This is probably caused by a combination of factors: projections that rates will continue to rise, lack of homes available, and returning confidence in the real estate market.

If you are considering buying a home, what should you do? Should you wait and see if more homes become available? Wait until you save more money or get a raise? The problem with that is if rates go up you could lose everything you saved while waiting. Just a 1% increase in interest rates could cost you more than 10% of your buying power. For example, if you want a $1,000 monthly principal and interest payment, that would buy you a $209,000 mortgage at 4%, but only a $186,000 mortgage at 5%.  

 So if waiting may not be beneficial, how do you get the upper edge in this competitive market? The answer is get pre-approval! A pre-approval means you have completed a mortgage application, supplied income and asset documentation, and are ready to buy. Unlike a pre-qualification, the agent and seller know your information has been verified and you will be able to finance their property. This will make your offer stand out from others because everyone will know you are approved and ready to go! 

If you’re interested in getting pre-approved for a mortgage, our affiliate, Almost Home Mortgage, can help! They will go over basics and discuss pre-qualification and the pre-approval process over the phone. Should you decide to set up an appointment, they will sit with you, go over the application, the types of loans available to you, and how factors such as taxes can change your buying power until you find an option that makes you comfortable. Call today!

 

Mortgages processed by an ABCO affiliate:

Almost Home Mortgage

856-581-4050
714 E. Main Street, Suite 2A
Moorestown, NJ 08057

NMLS# 118794 | Licensed by the New Jersey Dept. of Banking and Insurance

 

 

 

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