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Paul Yamilkoski

Not Just the Best Rates, but your Mortgage the Best Way

Will You Lose The Window Of Opportunity?

I have been seeing more and more articles and posts about what to expect from the housing market and financing over the next year or more.

The most recent article I read was from Inman. The takeaways were interesting to me, since I specialize in helping individuals get their credit into shape for getting qualified for a loan and in helping lenders and realtors that have clients with credit challenges get those clients back to them loan ready.

The key takeaways noted at the start go the article were:

•Mortgage rates are likely to continue to increase throughout 2017.

•There will not be any easing in inventory, and affordability will still be a challenge in big markets.

•The potential is there for a large number of first-time buyers to enter the buying market, but they will face new challenges.

I especially took note of the first and third bullet points, as they could be significant for Millennials, the group that I am seeing an increase in need for credit help.

More and more I am seeing young people that would like to own a house for the first time, but their credit is either not very good or nonexistent. Unfortunately, for many of those individuals that I have encountered, I have observed and make no judgment as to why, many are not very willing to take action to prepare their credit profile to be able to qualify for a mortgage.

The reason I say this is unfortunate, is in light of all three of the key takeaways from the article I mentioned – the potential for interest rates to increase in the next year and that a large number of first time buyers, but not an easing of inventory. Those first time buyers that are not eager to get their credit profiles into good shape now are going to meet with disappointment when they think they are ready to try to buy a home, because they can’t qualify, and then much higher costs because they waited to take action.

According to the article, there is speculation that interest rates could rise from around the 3.75% range to over 5% over the next year or more. Combine that with data that suggests millennials are struggling, as a whole, to get good paying jobs commensurate with their educations, millennials and first time buyers that wait until the last minute to make sure their credit is loan worthy, could find themselves quickly priced right out of the home they would prefer to buy, and be stuck with settling for much less or continuing to rent much longer than they would like.

This scenario also made me think about lenders and realtors as they look ahead for business. The millennial and first time buyer market is likely to become a more significant part of business for them. But with that comes a higher number of potential clients that will not qualify for loans and potentially become “lost” potential clients, as they find themselves discouraged by not qualifying for a mortgage, missing out on the home they wanted,  finding interest rates outpacing what they can afford, and then giving up.       

It doesn’t have to be that way though.

Maybe we get lucky and rates don’t go up as projected and maybe, though inventory is low, those buyers will still find the home they really want, when they want it and can afford it. Maybe.

But instead of hoping for maybe, how about just taking action now, while the opportunity is greatest. Rates are low now, tax season is just around the corner, which means more money soon available to try to get that home. You have a great window of opportunity to evaluate your credit profiles and make sure they are loan ready now.

Take the time to look at your credit. Get your real scores from a lender, so you know where you stand. Partner with your realtor and lender to make a plan to get everything in order now. Stay with that lender and realtor, so as soon as you are ready, you can jump on the opportunity and save a ton of money.

If you discover any credit problems when you have your credit pulled, get the help of a reputable credit restoration company like Heartland Credit Restoration, who specializes in helping you, in coordination with your realtor and lender, get your credit repaired, restored and rebuilt, and then back to your lender loan ready. The small investment will result in peace of mind, knowing you are qualified for the home you want as soon as you find it. It also means you will save thousands of dollars avoiding higher interest rates that are likely to come in 2017.

Realtors and lenders, you don’t have to potentially lose those clients with credit challenges. Be the hero, make more clients happy (which means more referrals) and make more money, by getting a premier credit restoration company like Heartland Credit Restoration, who specializes in getting clients with credit challenges back to you loan ready, working for you. There is no cost to you and your clients that take advantage if the help will thank you.

Lenders, realtors and individuals with credit challenges, call me for a free consultation 319-533-5236.

Don’t let procrastination about your plans to buy your first dream home cost you tens of thousands of dollars, the prospect of losing that home or losing valuable clients.

I welcome your questions and comments. Let me know what you want to know about credit issues.

Until we get a chance to talk, I hope you have a wonderfully blessed day!

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