Interest Rates are Rising
Over the last couple years, we have enjoyed EXCELLENT loan rates. These rates have translated into increased purchasing power, allowing buyers to increase offers, winning the homes of their dreams.
So, how do higher interest rates really impact buyers? Well, imagine you are a buyer. In February you qualified for a loan of $600,000. If you are planning to attach the same pre-approval letter to an offer you are writing in March, you better check with your lender.
Likewise, sellers need to be aware of how interest rates impact a buyer’s purchasing power. Make sure the pre-approval letter is current before you sign that offer. You don’t want to take your home off the market only to find out the buyer cannot afford to move forward at the accepted price.
Also, note the fact that there are different loan products. Have you heard of a jumbo loan? These incredible loans didn’t see the amazing interest rates that conventional loans offered. However, jumbo loans are now in the game and could be a fine alternative.
Bottom line, interest rates affect both buyers and sellers. Talk to your real estate agent and have a good relationship with your lender. Understand how interest rates can affect the sale or purchase or your home.