You Must Have Lender Approval
St. Joseph real estate agents continue to struggle with a market that’s beset by low inventory, with buyers seeking properties virtually as soon as they become available. “Our market is very intense,” said JoAnn Cobb. “As soon as a desirable property hits the market, there are multiple offers on the property listed.” That means you must have lender approval before joining the fray.
A report from the Kansas City Regional Association of Realtors shows a 5.8 percent increase in closed sales for October by agents working in the St. Joseph chapter. The chapter covers real estate activity for Buchanan, Andrew, Caldwell, Clinton, Daviess, DeKalb, Gentry, Harrison, and Worth counties.
The report also reflects a nearly 9 percent hike in the average home sales price for the territory, to almost $150,000. Inventories fell by 11 percent for the month.
Approximately 35 percent of St. Joseph home buyers purchased residential property priced at $55,000 to $110,000, she said, while 36 percent of buyers purchased homes valued in a range of $110,000 to $220,000.
Cobb advises home buyers to prepare in advance by making a clean offer and then offering favorable concessions to draw the best attention to their proposal.
If you are a buyer in this market, what can you do get lender approval?
5 Suggestions to Get Lender Approval
- Know your FICO 9 Credit Score. You canrequest a free copy of your credit report, then check it for errors, such as late payments incorrectly listed for any of your accounts and that the amounts owed for each of your open accounts are correct. If you find errors on any of your reports, dispute them with the credit bureau.
- Save your cash. Requirements for getting a mortgage loan often change, and if you are considering applying for a home loan shortly, be ready to cough up the cash. Walking into a lender’s office with zero cash is a quick way to get your home loan application rejected. Mortgage lenders are cautious: Whereas they once approved zero-down mortgage loans, they now require a down payment.
- Get out of debt and don’t buy any big items like a car before applying for a loan. Your debts determine if you can get a mortgage, as well as how much you can acquire from a lender. Lenders evaluate your debt-to-income ratiobefore approving the mortgage. If you have a high debt ratio because you’re carrying a lot of credit card debt, the lender can turn down your request or offer a lower mortgage.
- Stay in your job, at least until you close. That is one of the 5 stone cold suggestions to get lender approval. Lenders get spooked at the lack of continuity.
- Get pre-approved for a mortgage loan before looking at houses. Pre-approval shows emotional and financial responsibility. On the one hand, you know what you can spend before bidding on properties. And on the other hand, you avoid falling in love with a house that you can’t afford.
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