This month, Tyson Lund is joined by Jennifer Lund to talk about the importance of becoming pre-qualified for a home loan in this competitive real estate market. Watch the video or read the transcript below.
Tyson Lund, with The Lund Team, with our great financing contact, Jennifer Lund.
We want to take this time for a real estate market update and two fold - One, educate you about the market and then if you're looking to buy or sell real estate, one of the most important steps, that we can't drive home enough, is get pre-qualified.
And what does that process look like, Jennifer?<?p>
So the process starts with a phone conversation and that is just an opportunity for me to get a lot of details about the borrowers situation. You know: where you're living, if you're renting, if you own, if you have rental properties. And then I also ask you questions regarding your employment; You know, if you're salary, commission, hourly, all of that good information, where your down payment's coming from.
So, we have a very detailed conversation, and then we look at paperwork, we pull credit, and we run numbers, and really nail down a monthly payment you're comfortable with, and a purchase price for you to look it.
This is so, so important.
The market has seen rising home prices, back to, almost pre-top of the market pricing. So people are thinking, “Well I could take this equity, move up into my dream home. What would that look like? What would that new payment look like?”
Or downsize, 'I have a lot more equity now, and I want to go into a smaller house. Or, I want to look at investment property.'
Which we still have a good portion of our sales in this last year are looking long-term at investment property, and looking at the returns there as a great return for their personal situation.
So, we utilize Jennifer and her team, because they have the ability to get someone totally pre-qualified. Before we take a buyer out into a car, we want them pre-qualified because we want to know that we're looking at the right price for them, that we're not going to be disappointed that we can't qualify.
And two, if we do find the house, you have a type of program that allows them to remove that financing contingency a lot quicker than in a normal transaction.
Yeah, if we've done a full approval, then we can get the approval letter right over to agent, I can have a detailed conversation with them, just make sure they feel very comfortable with accepting the buyers offer. And then if it's needed, we can do a very quick close, and you can remove all your contingencies very quickly, which I think is important in this kind of competitive market.
Well, most of the times, with such slow inventory, we have multiple buyers going after the same property and we have to find out how can we differentiate our buyer, not just price, but if we can remove contingencies in a sorter period of time, you can be more competitive against the investors, the cash investors, and the like.
So, we want to encourage you, if you are looking to buy, sell or refinance in this market, give us a call, send us your questions, email us, visit us online at lundteam.com, you can call Jennifer direct, 760-420-6670, and we really appreciate you watching this video.
Broker Associate | 01385039