Embracing Mortgages 2022

We are seeing here in Brunswick County more and more all cash offers in this competitive housing market. Yes indeed, cash does stand out when multiple offers are being considered. But for a large portion of population, that is an option most of us can’t even consider on the biggest asset of our lives. Good to know that many billionaires like Mark Zuckerberg still take out mortgages. Investing gurus like Warren Buffett think sticking with 30 year locked rate with these low mortgages are a smart move. If rates go up in 2022, predictions are it won’t be by very much. It was reported in MoneyWise in 2021 that “Fed officials signaled they’ll keep rates at next to nothing until 2024”. What are the steps needed to secure a mortgage for a monthly payment you are comfortable with and still stay competitive as a potential buyer?

1.Talk to your Realtor for local Mortgage Broker recommendations.  

These days everything is online and rates are transparent.  Though it is much more than the rate, it also is the service.  In this tight market we have to have a good working relationship between buyer/realtor/broker to ensure closing success. Using remote or unseen loan institutions are no comparison to those tried and true recommended loan officers that we have productively worked with already. They know the area, they know the appraisers, they know the closing attorney, their reputation likely is known and respected within the seller’s agent. 

2. Get preapproved before shopping for houses.

In this competitive homebuying environment, home sellers and real estate agents want to know that you have a mortgage pre-approved for the amount needed and are ready to move forward quickly to make an offer on a home. Home sellers and agents don’t want to receive offers from people who cannot afford to buy the property.  Your agent will present that preapproval along with the Offer to Purchase.

3. Don’t buy a house you can’t afford.

A lender may offer you a $400,000 mortgage, for example. But can you make the monthly payments, especially considering other debt you may have? And don’t forget about all of the expenses associated with home ownership.  Plus add in property taxes and insurance plus that extra Wind and Hail we require in Brunswick County.  Contact an area insurance agent for insurance estimates on a specific property.  Do aim to put down minimum of 20 percent on the home to avoid PMI and be a stronger looking buyer.