Pre-Approval Is the Homebuying Step You Can’t Afford To Skip

​ There’s one essential step in the homebuying process you may not know a whole lot about, and that’s pre-approval. Here’s a rundown on what it is and why it’s so important to take care of before you start looking at homes with your RE/MAX® agent.  What Is Pre-Approval? Pre-approval is like getting the green light from a lender. It gives you a sense of how much they’re willing to let you borrow for your home loan. To determine that number, a lender starts by looking at your financial history. Here are some of the documents they may ask you for during this process: W-2s and tax returnsPay stubs and bank statementsInvestment account statements (if applicable)History of where you’ve lived  The result? They’ll assess your financial situation, and you’ll get a pre-approval letter showing what you can borrow. Keep in mind, any changes to your finances can affect your pre-approval status. So, after you receive your letter, avoid switching jobs, applying for new credit cards or other loans, co-signing for loans, or taking money from your savings. How It Helps You Determine Your Borrowing Power This year, home prices are expected to rise moderately in most markets, and mortgage rates are stabilizing, but still volatile. And since affordability continues to be tight, it’s a good idea to talk to a lender about your home loan options and how today’s changing mortgage rates will impact your monthly payment. The pre-approval process is the perfect time for that discussion. Since it determines the maximum amount you can borrow, pre-approval also helps you figure out your budget. And keep in mind, you may get approved for more than you feel comfortable borrowing, so use this time to decide what you can afford in your monthly mortgage payment as you factor in taxes, insurance, […]

We Are Testing Production Newsletter

​ After several years of rising home prices and volatile mortgage rates, it looks like the housing market will start to head in a more normal direction in 2025 – at least according to the latest forecasts. And if you’ve been thinking about making a move, that means the uncertainty that could’ve been throwing off your plans may be coming to a close.  Here’s a look at the latest expert forecasts on two of the biggest factors expected to shape the market in the year ahead.  Will Mortgage Rates Come Down?  Everyone’s keeping an eye on mortgage rates, and they’re projected to settle in the mid-6% range by the end of the year (see chart below): But remember, rate projections will continue to shift as new information becomes available. Expert forecasts are based on what they know right now. If there’s increasing uncertainty around inflation, employment, government policies, or other key economic drivers, mortgage rates will move. So, don’t get caught up in the exact numbers or try to time the market. Instead, focus on the fact that a bit more stability in rates isn’t a bad thing – and even a small change can help your bottom line.  A trusted lender and your RE/MAX® agent will make sure you always have the latest data and the context to understand what it really means for you and your monthly payment.  Will Home Prices Fall?  The short answer? Not likely. Home prices are projected to keep rising in most areas – just at a slower, more normal pace. If you average the expert forecasts together, you’ll see prices are expected to go up by about 2.7%, with the majority of the projections hitting somewhere in the 3 to 4% range by the end of the year. And that’s a much more […]

Headed Back Into the Office? You May Decide To Move

​ It’s no secret that remote work has surged over the last few years. And that flexibility gave a lot of people the freedom to move — and work — from wherever they wanted. But now, a growing number of companies are requiring employees to return to the office. And that’s leading some people to make decisions about where they live and if they need to move. How Return-to-Work Policies Are Impacting Housing During the rise of remote work, a lot of employees took the opportunity to move away from expensive or crowded city centers. Some opted for suburban neighborhoods and larger homes with yards, while others relocated to more rural areas. But lately, more people are returning to the city. And according to data from Bright MLS, more than half of workers surveyed would have to rethink where they live or deal with long drive times if their job enforced a return-to-office policy (see chart below): And maybe you’re one of them. If you moved farther out of the city during the work-from-home era, you may be facing a longer commute that you never expected to make daily. Once you’ve done it a few times, you might find it’s something you can get used to and isn’t as bad as you may have thought. But sometimes, it’s just too hard to make it work — no matter how much you try. A drive or train ride that seemed fine once or twice a week can feel like too much of a grind five days in a row. It may also cost too much to commute so often, take too long, or cut too far into your free time. As Lisa Sturtevant, Chief Economist at Bright MLS, notes: “During the pandemic, when remote work became the norm, homebuyers were able […]