Will You Be Able to Qualify for a Mortgage in this Year?

There are many great area homes for sale.Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (916) 248-7777 for a FREE home buying or selling consultation to answer any of your real estate questions.

Today I have Evangeline Scott back with me to discuss some developments in the mortgage world. There are two major things happening right now that you need to know about if you've been thinking about buying or selling.

The first development is the slated rise in interest rates. How will this affect you? As a buyer, we would recommend that you purchase as soon as possible because rates aren't going to get any lower. This is your chance to lock in a low rate and save thousands of dollars in interest over the life of your loan. Coincidentally, this would also make right now a good time to sell a home. Buyers will be coming out in droves looking for good deals before interest rates increase to 5% by the end of the year.

The other big development that not many people are talking about is the Fannie Mae adjustment. It states that if you own a home and you're purchasing a home and that home hasn't closed escrow, then you still need to pay your mortgage on your former home because you still own it. The rules have now been changed to say that if your home is listed for sale and under contract, you no longer need to make that mortgage payment. This will not affect your debt-to-income ratios, and now buyers will be able to make non-contingent offers. 

Contingencies can create a domino effect that can paralyze the real estate market, so this change is much needed. It's hard to find sellers that have the option and the time to take on risky buyers with contingencies. 

If you need help navigating through the mortgage process, Evangeline would be my recommendation. When people see her name on paperwork in a loan, they know that the deal is going to go to closing. That's how good she is!

As always, if you need to buy or sell a home, please don't hesitate to contact me! Now is a fantastic time to enter the market as a buyer or a seller.