In early July, Yahoo! Finance reported the average US rate on a 30-year mortgage fell to 4.04 percent.
For prospective buyers, this is huge news. For the last year, we have watched mortgage rates steadily climb. This was especially true as we hit the spring home-buying season, which is historically a popular time to buy and sell.
As the summer continues, Seattle area bidding wars are becoming more and more intense. The pickings are slim, especially for more affordable single-family homes. For many prospective buyers, a lower interest rate could mean the difference between homeownership and renting.
Additionally, a lower interest rate means thousands of dollars in savings over the lifespan of your loan. If you are thinking about buying – now is the time. The first step is always to get preapproved.
Preapproval is important for a variety of factors. These include:
It Sets Realistic Expectations
If you can only afford a $500,000 house, but you fall in love with a $1-million home, you are setting yourself up for disappointment. Even if you are just browsing, make sure you’re looking at something in your price range.
It Helps You Set Yourself Up For Success
Not quite where you want to be? When you work with an experienced loan officer, they don’t just tell you for what amount you are pre-approved. They can help you identify any potential discrepancies in your credit report and make suggestions about how to improve your credit score.
It Makes You A Competitive Buyer
Do you have your down payment saved? When you are out house hunting, you want to be ready to pull the trigger when the time is right. In order to be a competitive buyer, you need to be ready and able to make an offer at a moments notice.
Ready to get preapproved? Contact one of our loan officers today.