Multiple sources are predicting a great spring season for the housing market. Mortgage applications for new homes purchases are up according to the Mortgage Bankers Association. Lawrence Yun, chief economist at the National Association of REALTORS®, says that “multiple data show definitively improving conditions” heading into the spring selling and buying season.
Now is the time to get to get your finances in order if you are planning to enter the home search in the next few months. Realtors love working with borrowers that are pre-approved. A pre-approval differs from a pre-qualification because it is a full review of asset and income documentation as well as credit. It gives you a true mortgage commitment for a specific loan amount. A pre-approval has become an essential tool for homebuyers. Pre-approvals can be done in a matter of hours. Once you have a pre-approval completed with the lender of your choice, you have a head start on the loan process itself. Your loan officer will already have your loan file started and all you need to do once you find a house is provide the additional documentation required for your loan application and the property information.
With mortgage rates staying low, Yun expects more home buyers and sellers this spring. So far this year, the 30-year fixed-rate mortgage has fallen to under a 4.5 percent average. That means a typical home buyer could save nearly $100 per month due to the drop. In addition, wages are up 3.4 percent year-over-year on average, the highest rate in a decade. “The slump is over” in the housing market, Yun notes. “Better times are ahead for home buyers.”
Homebuyers need to be prepared to shop in a competitive market again this season. Partnering with the right realtor and lender will give homebuyers the advantage they need. Hard work and preparation will pay off in the end!
Sources:
“Boom or Bust for Spring Homebuying?” Forbes.com (March 14, 2019)
“How will the housing market fare this spring? Realtormagazine.com (March 15, 2019)
