How to WIN in Today's Housing Market

Imagine how one simple action can change your future. We know of such a case and we’ll share it straight ahead. But first it’s time to take a look at what the heck is going on with housing and mortgage rates.

Anyone house shopping today can’t fail to notice how quickly houses are disappearing from the market place. A home is put on the multiple listing service one day and is gone the next. That his occurring in almost every community in the country. Not only are these houses selling quickly, they are selling for prices well above what they were just one year ago. The price increases are due to the economic laws of supply and demand. When either the supply is low or the demand is high the price of any good, even houses, will increase. When demand is greater than supply it too will put upward pressure on prices. In the housing market today we have both a limited supply and an increase demand. There’s one other important factor which might add to the current housing boom. The cost of borrowing money remains extremely low.

Just a few years back we at VALOANSMN saw a rush of house refinancing when rates had dropped to five percent. Today, rates are even lower, in fact, they are much lower. You can thank the Federal Reserve for that. The FED continues to print money and buy government bonds. This demand from the FED keeps bond prices elevated and when bond prices go up the interest rate they offer goes down. We’ll save the explanation of why this happens for another time but, for now, just know the FED is the borrower’s best friend.

So what does this mean to home shoppers? In a word it means competition. When more than one buyer wants a home it means you’d better be in good financial shape when you make your offer. When a home seller has more than one offer to consider what can make (or break) your chances of success? The answer takes us back to our opening statement; imagine how one simple action can change your future.

As a home buyer you must have an appealing financial package to present to a home seller. What is this appealing package? It includes a statement from a lender that you are completely qualified to purchase the home at the price you’re offering to the seller. The simple act of picking up the phone and calling Brad at Luminate Home Loans/VALOANSMN might change your life.

Brad can help you put together that appealing financial package. Not only that, he will write a letter to the home seller stating your case. This letter is sometimes referred to as a pre-qualification letter or form. Do not fear your financial past. If you’ve had trouble, tell Brad, let him work with you to improve your situation. The simple act of a phone call may be a major step forward in your life’s journey. Here’s the number to get you started on the simple step toward success in today’s frantic housing market: 612-240-9922