(WXYZ) — As the interest rates remain historically low and the real estate market remains hot, there can be a lack of clarity on how to “win” in this market.
David Hall, a leader in the Detroit mortgage market for decades and President of Hall Financial offers the following tips:
The myth of “20% down” – even though buyers haven’t required 20% down for decades, some still think it’s required to purchase a home. There are so many mortgage and financing options that don’t require it.
Refinancing – Hall says if you haven’t refinanced in the past year, you need to do it. Rates remain at historically low levels and most home owners are looking at considerable savings if they haven’t refinanced so in the past calendar year.
Take the time to shop for the best rate! It’s all about monthly payment – for most consumers a .1% increase or decrease doesn’t translate to much. Working with your finance partner to hone in on that monthly payment – how it will go up or down.
You can complete home renovations using refinancing – in 2020, the average American homeowner saw their home earn $20,000 or more in equity. Homeowners can leverage the cash-out refinance to maximize current property values; this allows for a convenient way to pull cash out of your home to use on things like a home improvement (which will in turn, increase the value even more), pay down debt or take care of some other bills.
Speed is the name of the game in this hot market – Work with a lending partner that can get you a pre-approval quickly and can process your mortgage quickly to get you to close. Having that pre-approval is critical to getting an offer accepted on a home.
Don’t get discouraged – Most buyers are putting 8-10 offers on house before they get one accepted in this market. Pack your patience because the right house will come along.