The National Association of Realtors revealed that there was an influx of new homes entering the market.
This is great news for buyers who had been experiencing limited choices in new homes since this past January. Although still down 5.2 percent from the same period last year, pending home sales showed a jump of 6.1 percent. The onset of warmer weather has finally put St. Louis homeowners back to the business of selling their properties. This trend is being noted not only in St. Louis, but all across the nation.
An Ideal Sellers Market
Thanks to a lagging market in the earlier part of the year, a shortage of houses on the market made for an ideal sellers market for St. Louis residents. House hunters are reporting that homes are being bought in only a few days. With multiple offers being made and actual bidding contests taking place for ownership, some have resorted to offering cash as an incentive in order to entice the seller to choose them.
This is not making things easy for a house hunter and it is being suggested that in order to make themselves just as appealing to a seller they should be getting pre-approved for a mortgage. This is a sign to the seller that your offer is serious and that it won’t fall through later for lack of funding.
Pre-Approval Before House Hunting
Most home buyers do not realize that they have this option. Having your TBD Approval in hand before the hunt not only makes you more attractive to a seller who is getting multiple offers, it saves you the time and heartache of looking at homes that are not in your budget.
How Lenders Qualify Borrowers
Traditionally, more value was placed on the value of a home than on the borrower’s ability to pay the monthly mortgage premiums. Recent economic events have taught lenders to look harder at the borrower then on the assets of the home. This should not scare you away from looking for a house. There are a variety of loan packages available that are backed by Fannie Mae and the FHA that are helpful for first-time homebuyers and those whose credit is less than perfect.
Before meeting with a real estate agent, meet with a reputable lender like Better Rate Mortgage, who will work on helping you determine how much house you can afford. We will get busy on getting your pre-approval so that you can get busy on the hunt for the perfect home. A good lender knows that there is more to the job than collecting data and running it through a formula. Better Rate Mortgage will go over with you your personal and financial situation to find you the perfect loan package that can fit all of your needs.
Be ready for this strong seller’s market that has taken over the St. Louis real estate market by getting prepared beforehand. The better you look financially to a seller with options the better the odds that they will pick you. Call Better Rate Mortgage at (314) 361-9979.
Photo credit: Nan Palmero via Flickr