They are up about .25-.375% in the beginning of this year. Couple that with rising home prices and it makes for a more expensive payment on the same home. With the lack of inventory it has even caused people to put offers on homes without even seeing them. Check out this data from RedFin talking directly to this point. In Denver, 33% of people had done this according to the survey. Combine rising mortgage rates, and a low inventory of homes for crazy competition this year. If you are thinking of sitting out another year, check out this report to see what the cost of waiting to buy really is.
That being said, here are just a few things we have done to help people prepare for this frenzy.
- Credit approvals – a complimentary credit approval. This puts you one step from a cash buyer. The underwriting team will have physically approved your loan. This can allow you to move much faster, giving the seller piece of mind about your loan approval prior to accepting your offer.
- Bridge Loans– If you need to sell to buy, look to this program to tap equity from your existing home, use it as a down payment, all before selling your existing home. Check out more information here
- Lock & Shop– Rising mortgage rates could sideline someone who otherwise would have been able to buy on a home. Be mindful about what you read. Seek advice from local professionals. Given the trend on rates and housing prices in Denver, that could be a costly choice. Did you know you can lock in your rate before going under contract?
Make sure to prepare properly for the expectations ahead as you navigate the Denver real estate market. Talk to your agent about what it is like out there, ask them to give you the data on available homes, days on market, list v. sales prices so you are more prepared. From there, get pre-approved early, and talk to your lender about available options on not only loan programs, but options to put you in the best position possible to win your offer! Happy house hunting.
For more information on credit approvals, bridge loans, or the lock & shop program hit us up!