As everyone knows rates have pretty much doubled in the last 6 months to a normal range in the low 5s. We expect rates to continue into the 8s over the next 6 months. What this means is we are unlikely to see the over-bidding of the past (white-hot prices). However, that hasn't slowed down as of May 2022. We're seeing a lot of clients over-bid. What is over-bidding? Well, it's paying more today than it's worth for your home. Appraisals are starting to come in way-under purchase prices in some instances. Some people don't mind that, as it can be frustrating spending years looking for a home. In fact, if it does take you a year you are likely to be over-bidding anyway since home price appreciation was 25% last year and is likely to be 10+% in 2022. Therefore, over-bidding is a time oriented situation. No one wants to pay more for something, but when it comes to your home the facts are friendly. People will always over-bid to get the home of their dreams. What can you do about it? Answer:
Make your Realtor work harder!
Realtors are your eyes and ears for bidding on a home. I once put in 3 offers in one day. Unheard of? No. I qualified to buy all 3 and therefore, it was fine. We purchased the home that we wanted and it worked out. Make sure you speak with a licensed mortgage loan officer about over-bidding. What's your back up plan if you find you've overbid? Your bank only has a requirement to hire an 18 year old. Don't fall victim to believing what someone says who has never purchased a home before. Get a licensed professional that you trust involved in what will likely be the largest financial transaction of your life.
We treat you with respect and operate in Florida, Virginia and North Carolina. If you are looking for an honest, hard-working mortgage company that doesn't take advantage of the rate situation please give us a call. 919 771 3379. Thank you. Andy May
Absolutely! Even if you haven't so much as picked out houses to visit yet, it's important to see your mortgage professional first. Why? What can we do for you if you haven't negotiated a price, and don't know how much you want to borrow?
When we pre-qualify you, we help you determine how much of a monthly mortgage payment you can afford, and how much we can loan you. We do this by considering your income and debts, your employment and residence situations, your available funds for down payment and required reserves, and some other things. It's short and to the point, and we keep the paperwork to a minimum!
Once you qualify, we give you what's called a Pre-Qualification Letter (your real estate agent might call it a "pre-qual"), which says that we are working with you to find the best loan to meet your needs and that we're confident you'll qualify for a loan for a certain amount.
When you find a house that catches your eye, and you decide to make an offer, being pre-qualified for a mortgage will do a couple of things. First, it lets you know how much you can offer. Your real estate agent will help you decide on an appropriate offer, but being pre-qualified gives you the confidence to know you can follow through.
More importantly, to a home seller, your being pre-qualified is like you walked into their house with a suitcase full of cash to make the deal! They won't have to wonder if they're wasting their time because you'll never qualify for a mortgage to finance the amount you're offering for the home. You have the clout of a buyer ready to make the deal right now!
You can always use the calculators available on our site to get an idea of how much mortgage you can afford -- but it's important to meet with us. For one thing, you'll need a Pre-Qualification Letter! For another thing, we may be able to find a different mortgage program that fits your needs better.
Deciding how much house you can afford is a personal decision.Many factors come into play.How much can I borrow? How much can I put toward my down payment? What size monthly payment can I afford?
There are no black and white answers to these questions. It’s a matter of give and take. If you plan on a 30 year mortgage, you can probably make a lower down payment (or perhaps no down payment at all) and still manage the monthly payments. If, on the other hand, you plan on a 15 year mortgage, you’ll probably want to make a larger down payment to keep your monthly payments in line with what you can afford.
How large a down payment can I make?
Many buyers look at their cash on hand as their only source for their down payment. This simply is not the case. One way to fund or partially fund a down payment is by using a gift. Parents, grandparents and other family members are often eager to help by making a cash gift toward the purchase of your home.
There are also down payment assistance charities that can help you. And, of course, if you are selling a home, the equity you’ve built up can be applied to your down payment.
But these are not your only options. We can help you explore all your down payment options, including low down payment and 100% mortgage financing options that might be right for you.
What size monthly payment can I afford?
When determining what size monthly payment you can afford, you’ll want to consider what other monthly expenses you have. Tangible expenses such as car payments, day care and utility bills, all play a role in how large a monthly payment you can afford.
There are also the intangible expenses or lifestyle expenses that you’ll want to consider. Things such as dining out, travel and when you buy your next car can affect how much you can afford. Are you willing to curtail or delay some of these expenses in order to afford a larger monthly payment?
How much can I borrow?
This is a question you’ll want to get answered before you begin your home search. This is something that we're here to help you with. Our mortgage calculators will help you see how your down payment, monthly payment and the amount you borrow are all interrelated.
We can answer any questions you may have about the mortgage process. But the best way we can help is by getting you pre-qualified for a mortgage loan. To get started, simply complete the form below to let us know a good time to contact you. We look forward to
The above scenarios are based on generally available closing costs. At ADRMortgage.com we currently do not charge a processing fee (at a potential savings of $850). Additionally, we compete on rate. Lower closing costs, lower rate, better service. Check us out at www.adrmortgage.com.