Source: CNN Business —
Super Bowl weekend is the unofficial kick-off to the peak spring home buying and selling season, according to many real estate agents.
Are you ready?
If you’re feeling unsure and confused, you’re not alone. The US housing market is giving off mixed signals: Home prices are falling, but they’re also rising. Mortgage rates have been ticking down, yet remain volatile. Sales have fallen for 11 straight months even as the US job market is the strongest in 50 years.
The cost to finance a home doubled in 2022. But there has been some relief for prospective homebuyers, as average rates for a fixed-rate mortgage have fallen from last year’s peak of over 7%.
Now is a window of opportunity, said Jim Flanagan, a broker at Coldwell Banker Flanagan Realty in Toms River, New Jersey.
“Because there are fewer buyers, they have more time, they don’t have to make a decision in 24 hours,” he said. “They can look at two or three homes, instead of just one and feel like they have to make a decision 15 minutes later, the way it was the past couple years.”
Even in markets where a well-priced house attracts several bids, the frenzy is muted, said Flanagan.
“With multiple offers on an entry level home, we’re not looking at people paying $50,000 or $100,000 over the list price,” he said. “Maybe $5,000 or $10,000 now.”
Here’s how to be ready to make a move when the right home comes along.
Get pre-approved for a loan
Inventory is stubbornly low in many housing markets because so many current homeowners are reluctant to trade in the ultra-low mortgage rate they got over the past couple of years. With the supply of homes to buy expected to follow seasonal trends and grow steadily heading into the spring, now is the time to be sure you are not only pre-qualified for a loan, but also pre-approved.
Both processes are helpful when buying, but a pre-approval carries more weight. Being pre-qualified for a mortgage is based on financial information provided by the buyer and gives buyers a rough estimate of what they might be able to afford.
But the pre-approval process is based on data verified by a lender, including a credit check. Once you’re pre-approved you get a conditional offer for an exact loan amount from a lender.
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