Embracing Mortgages

Are higher mortgage rates, combined with record high home prices, starting to affect our steady climb of being strictly a sellers’ market?.  According to Rocket Homes, as of April 2022 in Brunswick County, 45.7% of homes sold above asking price*.  Entering our traditionally steamy hot time for sales here at the coast, we should soon see what changes or continues.  We do know mortgage approvals and appraisals are going to be drastically affected by any change.  What can our local buyers do to stay informed if entering this volatile market?

·       Don’t go with the first mortgage lender you talk with

Shopping around is so important. Mortgage rates are transparent online, but nothing beats a personal and trusted relationship with your local Mortgage Broker.  Ask your realtor who they have successful working relationships with.  Shop local and be a confident buyer as they can explain our market.  As well as likely utilizing a local appraiser who understands our coastal market.

·       Second Homes could have increased fees

Effective 4/1/22 the FHFA announced that fees will increase for second home and high balance loans. As well, guidelines are also getting stricter – especially for condos. Find out before you choose your lender if they sell their non-QM loans to Fannie Mae or Freddie Mac. 

·       Delayed Financing

Delayed Financing Our local bidding wars is forcing some buyers to utilize their savings to be a more competitive all cash buyer when it was not in the original plan.  Eligible buyers can recoup that and place those funds back to their savings by using Delayed Financing.  A mortgage can be obtained up to six months post the close date of the property.  This could both be the right long-term option as well as making sure you get property.

Before the property search, before falling in love with the house, it is so important for buyers to be well informed and then pre-approved if using a mortgage.  This should be their step #1 when entering our competitive real estate market.

* https://www.rockethomes.com/real-estate-trends/nc/brunswick-county