I Have an Answer for That

MAR 20, 2013 5:25pm ET

These are some of the legitimate concerns that are keeping people from jumping into the real estate market, despite the current low interest rates and need for inventory.

People may fear if their house has lost value that after selling they still will not have a down payment that will get them into a new property.

People may fear they will sell their house and not be able to find something to buy.

People may fear they won’t qualify for a new mortgage in today’s more restrictive lending environment.

Help potential sellers make informed decisions by knowing the options that can help them determine the housing opportunities available to them.

•        What mortgage amount do I qualify for? Today’s low interest rates increase buying power, find out what your client can afford before they make any decisions. Have them call us for a credit analysis and pre-approval!

•        Can I buy without selling first? Let us do the math and figure that out. With these low rates many people actually qualify to carry their current mortgage along with the new mortgage (until the house sells).

•        What if I do qualify but don’t have a down payment? There are many strategies available such as taking a short term loan against a retirement account, a home equity line against a current property, a gift from a family member…there are many ways to source a down payment.

•        I’ve lost equity in my house and cannot come up with 20% down on the next purchase? Again, with rates this low taking private mortgage insurance to get into a dream home is not a negative, it can be a huge positive, let us show you why.

•        I have to sell in order to buy, what happens if I sell and cannot find a new home in time? Let’s do the math and make the determination and come up with a selling strategy which can involve a delayed closing date to allow time to shop for a new home, or a standard closing date with an option to rent the house back from the buyer for up to 60 days. There are frustrated buyers who want to buy and will be happy to work with a seller if they want the house!

•        If I wait my house will be worth more, why should I sell now? Yes, many people believe that, and values are increasing at this time. As values increase and the economy improves the first thing everyone will see is higher interest rates. Holding out for an increase in value may cost someone the low payments that are driving today’s real estate boom. Let’s do a cost comparison of mortgage payments at various rates and determine what you might give up in payment while holding out for increased equity.

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