Thursday found Wall Street in a schizophrenic mode. Hyper sensitive does not come close to describing the markets reaction to each and every piece of economic news. Earnings reports from dozens of firms caused buyers to enter, leave and re-enter the markets. Interest rates naturally followed suit, and there were several changes as the day progressed.
Home buyers looking for a purchase loan have very little hope of comparing good faith estimates apples to apples. A rate from a early morning appointment can be obsolete at lunch time, but then be relevant at dinner time. I suppose if you went to an appointment in the morning, and then discussed it at dinner, you may find your quote as you left it.
There is a danger in shopping for a rate without considering the quality of the service, product knowledge, and communication skills of the loan officers competing for your business. Rates can change quickly, so you may not be able to call back in a few hours and get the rate you were quoted. Trying to get a rate from a few days ago is probably not realistic.
For those that are trying to refinance their mortgage (or 2) getting a rate quote is far down the list of questions to ask your lender. Start with "is there a program available" for me to refinance. A rate is meaningless if you can't close the loan.
Paperwork and documentation is required on nearly every loan, so be prepared to provide 2-2-2.
2 Paystubs - 2 bank statements - 2 years tax returns to get an accurate quote.
For More information Call Ron @ Metlife Home Loans386-562-2651
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This months after hours event for the Port Orange/ South Daytona Chamber of Commerce was held on Thursday night October 16 at the Volusia Memorial Funeral Home in Port Orange. The event was well attended, and the food and drink were excellent.
The staff gave a presentation of their services available and had a feature video of Dignity Memorial to show all of the options available to families to remember their loved ones. Many that attended were surprised at the vast array of services available.
There were numerous winners of door prizes, and the 50/50 raffle was worth over $100. There is also a jackpot drawing at each monthly event. A business card is drawn from a box that is used at each event where members can leave a card when they arrive to enter the drawing. You must be present to win or the money rolls over to the next event. Last night the "winner" was not present and missed out on a prize of $475.
Click Here To Visit The Chamber Website
Click Here To Visit The Relocation Page
The biggest risk to buyers on the fence is loss of purchasing power. Not only does it feel like long term fixed rates may be heading upward, they did jump upward this week. If rates continue to increase, and the cost of a home begins to stabilize, buyers will end up paying more each month. It would take a continued slide in home prices to make up for an increase in interest rates.
Looking for a way to get your buyer off the fence? Show your buyers the difference in monthly payment using the rates 6%, 6.5% and 7%. Use the same loan size for each example and then let your buyers decide if hoping for an even lower price is worth the risk.
The "really good buys" are selling quickly. Unfortunately some estimates show that as much as 80% of homes listed for sale are priced above the market. This only leaves a small amount of homes that are priced to sell. For those homes that are aggressively priced and in very good condition, there is very little competition. In the event that you have identified one of these sweet deals for your buyer, consider using the examples above to create the urgency necessary to write the offer.
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Call Ron @ Metlife Home Loans for an appointment in my Port Orange Florida office for your buyer 386-562-2651
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I just returned from a luncheon to support the American Cancer Society at Adams Cameron & Co in Ormond Beach, FL. This is the 12th annual luncheon put on by the area real estate company to support the upcoming charity event for Volusia and Flagler County. A special thanks to Debbie Callahan for the invite this year.
I have attended this luncheon since 2004, when I first arrived in the Daytona Beach Area. A donation is requested by the gracious staff as you walk in the door and they provide a free lunch. The place was packed as usual, and there was more food than you can imagine. The agents, staff, and friends bring a dish to be shared which makes for a great buffet. There was no shortage of desserts available for those with a sweet tooth. Kudos to the team for putting together a great outing.
All donations are given to the local charity which is holding its annual walk next Saturday Oct 25. My wife and I will be walking in that event as well as 100's of others from the area. If you would like to help support the cause by donating to the team that I walk with, please click the link below.
How much longer will we be able to say that it is a buyers market?
For quite some time now home buyers have been in charge.
Lets face it, we all work with buyers that are still looking for a better deal than they have in front of them. The reality of the situation is that ample supply, motivated sellers and low interest rates cannot last forever. As soon as one of these 3 key elements disappear, it is likely that a SHIFT will begin to occur. Granted it will be a gradual shift, but still a shift. I counsel buyers each day in my Port Orange, Florida office to empower them to make informed decisions on what is best for their risk tolerance.
The biggest risk to buyers is loss of purchasing power. While no one can be sure, it does feel like long term fixed rates may be heading upward. If rates do increase, it reasonable to say that the monthly cost a home will go up if prices have stabilized. It would take a continued slide in home prices to make up for an increase in interest rates.
It is a pretty simple example to show a buyer the difference in monthly payment if you use the rates 6%, 6.5% and 7%. It is more telling to show them similar payment estimates if you mix in loan sizes of $180,000, $190,000, and $200,000. Let you buyers decide if hoping for an even lower price is worth the risk of increased interest rates.
Click Here For A Loan Calculator
Call Ron @ MetLife Homes for a Good Faith Estimate
386-562-2651
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Real Estate Agent and Loan Officer in Daytona Beach Florida. A trusted full service professional for all of your your real estate consultant and mortgage specialist needs. One Stop Shopping.
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