Preparing for the Spring Buying Season
It’s been over a decade since the subprime mortgage crisis wreaked havoc across America. But fears may still linger with your clients. And some of those fears may get directed at NON-QM loans. But here are a few ways for you to show how NON-QM products differ from the riskier loans of the past.
Prepare for Competitive Bidding
While the bidding competition may not hit 70% this spring, there will likely be intense bidding, according to spring housing market predictions. And many of the victors will be those who are armed with pre-approved mortgages and ready to do deals. So whether they’re buying homes to live in or as investment properties, your clients should get the process started now.
Act Fast for the Best Rates
You may very well have clients who are waiting to see how the housing market plays out in the near future; mortgage rates are rising, but those costs may be offset by falling home prices. Right? Probably wrong. While the rise in home prices is slowing, prices are still going up, and most experts expect them to continue to do so. As for rates, the Mortgage Bankers Association predicts that average rates will top 4% by the year’s end. So for both favorable interest rates and good home prices, spring looks to be a better time than summer or fall.
Look Beyond the Big Cities
With home inventory low and competition high, finding a house in or close to a major metropolitan area could be more difficult than ever before. You might advise your clients to widen their searches to less-urban areas and remind them how changing times might make that more feasible. With remote working becoming ever more common, living within commuting distance to an office in the city may no longer be a prerequisite.
Plus Some Patience
While things may not hit a fever pitch this spring, there will be a fair degree of frenzy as your clients enter a competitive market. Help your clients by serving as the calm at the center of the storm. Yes, spring is a good time to buy, but you might remind would-be buyers that these days we’re really living in a year-round home-buying season. So if it has to be summer or fall, waiting a little for that perfect home may be wise.