So, you’ve found a realtor and you want to search for your forever home, but the realtor asks for your pre-approval? First, what is a pre-approval, you ask? A mortgage pre-approval isn’t
What's Happening with the Residential Properties in Jacksonville?
Dated: March 15 2022
These are murky waters for someone wanting to purchase their first home or to purchase a home for living purposes. On average, potential homeowners are submitting offers for at least 4 properties or more before finally having an offer accepted. So, anyone searching for a home, should brace themselves for a lengthy but educational ride. The time for negotiating the purchase of a home is no more, as the inventory of homes is at an all-time low and one would need buying power to achieve their home-buying goals.
Jacksonville has been identified as an attractive market for out-of-town investors and they are purchasing properties here at an alarming rate with cash offers. Sellers will more than likely accept a cash offer before they will accept a conventional loan offer simply because of the appraisal contingencies and minimal closing time. Although sellers should be aware of the inspection contingencies in that offer as well, since it allows an investor to change their mind during that period and is usually when the investor may try to lower the offered amount. These investors are purchasing these properties in the nicest neighborhoods in our city, especially Jacksonville’s Northside, leaving our neighborhoods full of renters, thereby changing the landscape of those neighborhoods. I’ve only met one seller that wanted to preserve the neighborhood and sell the property to someone that wanted to live in the property instead of taking the cash offer from an investor. We need more sellers that have sentimental value in their home and want to see the neighborhoods continue to thrive. However, it’s a seller’s market and cash offers are winning more than not.
How can potential homeowners win in this market of investors? Increase your buying power, by increasing your credit score, minimizing your debt-to-income ratio, build a savings or 401K, and remain on a job long enough to create job history. Each of these things will increase your buying power as you will receive a better interest rate with a good credit score and a high pre-approval amount, with the help of a low debt-to-income ratio will place you in a position to increase your offer. Investors have become savvy in this market by offering more than the asking price, and that’s a tough offer to beat. However, with some savings or 401K, a potential homeowner can do the same. The buyers with a little bit more buying power are the ones that are having the most success.
Suggestion: I always suggest a buyer ask for a conventional loan just in case they find a property that isn’t FHA approved, unless they are VA approved. A potential buyer can increase their buying power by contacting a realtor who can refer them to a lender with down payment and/or closing cost assistance, this would allow the buyer to use the funds they’ve saved for the down payment, to be used as the overpayment. Keep in mind, the value of properties are increasing daily because of these overpayments. A house that was appraised at $205,000 in 2020, can potentially be appraised at $300,000 in 2022. So, paying over the appraised value has its advantages, but can be more of a challenge for someone without a savings or 401K.
Hi, I'm DANA LEWIS and I'd love to assist you. Whether you're in the research phase at the beginning of your real estate search or you know exactly what you're looking for, you'll benefit from having ....
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These are murky waters for someone wanting to purchase their first home or to purchase a home for living purposes. On average, potential homeowners are submitting offers for at least 4 properties or