According to Redfin, homebuyer competition is at its lowest point since early in the pandemic. The housing market is slowing as higher mortgage rates discourage many would-be homebuyers. Those factors give people who are still in the market a newfound bargaining power — a stark contrast from last year and even earlier this year; when they often had to pull out every stop to win.
So, what can you do to successfully navigate this newfound market?
Here are a few tips from our experts:
1. Don’t rush. Lower competition in a buyers’ market means that you don't have to stress about quickly getting your offer in without considering important factors. This a good time to take advantage of our extended long-term locks which we call Lock and Shop. That way, you can take your time and still avoid potential rate increases.
2. Have an updated pre-approval letter. With higher interest rates, it’s important to know what you can afford. An initial approval letter by us can give you more certainty when you make an offer. Did you know 1 out of every 5 transactions are being canceled due to the buyer's loan not going through? Sellers are aware of this which also proves why it's so important to have a updated pre-approval letter and in some cases an underwritten approval. This means that the loan will be reviewed by our underwriter and given the 'green light' to continue; contingent on finding a property.
3. Flex your buying power. Take full advantage of benefits such as waiving escrows, our early acceptance of 2023 expected conforming loan limits and, of course, our 50-100bps lower Game On pricing to help your borrowers make the most of their buying power. You may even be able to move your borrower from a jumbo to a conventional loan, where they can utilize our temporary rate buydowns and escrow waivers up to 97% LTV, which means more money in their pocket. And even with a lower down payment (as little as 3%), borrowers can still save on their monthly payment with our lower BPMI rates.
Our complimentary Mortgage Planning services can help you succeed in today's housing market. Our experienced mortgage loan officers are equipped with technology, intensive training and upmost care to help you establish an effective game plan. Reach out today to get started!