Tuesday, August 09, 2011

Home buying tips: Be ready for low mortgage rates



We asked our Chicago mortgage expert Steve Dunnett to give examples of how he's been helping clients with today's low mortgage rates.

Every cloud has a silver lining.

Mortgage rates have fallen to historic lows. I am not allowed to quote rates online but I can say that rates are about as good as they have been in 50 years.

What does this mean to buyers?

Lower interest rates mean real estate just went on sale. In the stock market you want to buy when the market is low and real estate is no different. Right now home prices have fallen, rents are rising and mortgage rates are at historic lows. That is what you call a buyer’s market. None of this matters if you have not prepared to take advantage of lower cost of ownership.

Be Prepared for a great deal to come along.

You would not know it by reading the papers but good deals are already going very quickly. Eric, Bob and I recently closed a purchase for a buyer client where the property appraised $66,000 above the sales price. There were multiple offers but our client secured the deal because they were fully pre-approved and well educated on the market. The selling agent actually called me to discuss their financing before they accepted the contract.


Even in slow markets great deals are out there but they move quickly. If you want a great deal you need to put yourself in a position to get a great deal. Step one is to get pre-approved for a mortgage. Not pre-qualified, pre-approved. Sellers are looking for strong buyers and they know the difference between the two. Step two is to let Eric know exactly where you are looking and what you are looking for... and be ready act when it comes on the market. Great deals will have multiple offers so the seller is not going to wait around for you, be ready.



*Contact Steve Dunnett with mortgage financing questions and pre-approvals at
Steve Dunnett, Loan Officer
NMLS ID: 755940
312-462-7709
www.dunnettmortgage.com


Call or email Bob and me from the contact information to the right of the screen to find your home!



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