Why You Should Always Get Pre-Approved for a Home Loan

When searching for a home, you can get pre-approved or pre-qualified for a home loan. They sound similar, but there are some important differences between these two options.

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When you seek a home loan, there are some significant differences between being pre-qualified and being pre-approved.

The Pierce County market is on fire and you have to move quickly to buy a property due to all the bidding wars. That's why I can't stress the importance of getting pre-approved at the highest level enough. It will allow you to come to a seller with a stronger offer.

Being pre-qualified basically constitutes calling a lender to tell them your general income, what you think your credit score is, and what your debts are. They'll give you a rough idea of what they'll loan you, but in my opinion, it's not really worth anything. 

Offering to close in just 21 days can really give your offer an edge.

Being pre-approved is a different story. It constitutes providing your bank statements, a real credit check, and the lender making sure that there won't be any roadblocks for you in the lending process.

There are even some lenders out there who can take the pre-approval process all the way up to only having to wait on an appraisal. That process can typically be a 21-day process. If you can offer to close within 21 days, it will give your offer an edge and give the seller comfort in knowing you've taken the extra step to get pre-approved.

If you need a recommendation for a great local lender, we'd be more than happy to provide that for you. Unfortunately, there are far too many lenders out there who aren't reliable and don't do the things they say they'll do.

If you have any other questions about real estate here in Pierce County, you can always give me a call or send me an email. I'm here to help.

How We Helped Bethany Buy a Home and Sell It 7 Years Later

“He was a referral from a friend of a friend and he helped me purchase my first home about seven years ago. I was so impressed with his customer service and his attention to detail, so when I decided to sell my home I decided to stick with him. He is a passionate and driven person who is service minded. He will hold your hand through the whole process and make sure that you make the best decision for you.”

1st Quarter Pierce County Market Update

What's going on in our market right now? A good way to get a feel is by comparing the stats from the first quarter of 2017 to those from 2016.

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Want to buy a home? Search all homes for sale.

The Pierce County market is still doing great right now, and a good way to show it is by comparing some stats from the first quarter of this year to the first quarter of 2016. 

Last year in the first quarter, 2,848 homes sold for an average price of $255,000 in an average of 33 days. The average house sold had three bedrooms, 2.5 bathrooms, and about 1,900 square feet. Sales ranged from $35,000 to $1.75 million.

It's a great time to sell a house but a challenging time to buy one.

In the first quarter of 2017, 3,205 homes sold for an average price of $284,000 in an average of 23 days. That's actually a 12% increase in sales, which is pretty amazing considering the low inventory. Prices ranged from $27,000 to $1.54 million.

One of the best figures we can use to project the future is absorption rate, which is really just a fancy way of saying supply and demand. Over the last three months, about 1,400 homes have sold per month, and as of April, there are 1,387 homes currently for sale. That's only 1.29 months worth of supply at the current rate homes are selling, making it an extreme seller's market. 

That means that if no new homes came on the market starting now, it would only take 1.29 months for all the available homes in Pierce County to sell. It's a great time to sell a house but a challenging time to buy one. However, interest rates are still low enough for it to be a great time to buy a home for a great cost.

If you have any questions about our market or you're thinking of buying or selling a home, give us a call or send us an email. We're here to help.

How We Were Always There With a Solution for Lynette

“Great! Most of what he did was above and beyond. Some of the things that happened were quite frustrating and he was there with a solution every time.”

Is Waiting to Buy Costing You Money?

If you’re waiting for inventory to pick back up before buying, are you really making the best decision? Waiting to buy could end up costing you.

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Is waiting to buy a home costing you money? There are really two things to consider when it comes to the long-term impact of waiting: home appreciation over time and the cost to borrow money (interest rates).

The Federal Reserve has signaled that they are planning on increasing the interest rates in 2017 at a much more rapid rate than they have in the past. We have already seen interest rates go up over the last six months, and we anticipate that they are going to continue to do so, probably at a quicker rate.

If you’re a buyer, you might be tempted to wait until more inventory comes on the market, but think about this.

If rates go up even 1%, home affordability will drop by 10%.

As interest rates go up, even just a 1% increase will affect home affordability by 10%. This means that there would need to be a 10% drop in home prices to give you the same monthly payment you could get at today’s rates. We don’t see that happening anytime soon.

Home prices are really dictated by supply and demand. When we look at those numbers locally, it’s pretty ridiculous how low our supply is right now. In the last 13 years, I’ve never seen the inventory in our market as low as it is right now.

If you’re looking at a certain price point, let me know. We can discuss the interest rate projections and what it would cost you to wait. If you have any other questions, don’t hesitate to reach out by phone or email. We would love to hear from you soon.