Here are three tools you can use to better compete in today’s market.
The No. 1 question that we’ve been getting from buyers lately is, “How do we navigate this changing market?” I’ve been in the real estate industry for 23 years now, and I’ve sold homes in both up and down markets. That uniquely qualifies me to help our clients through this change in season. Here are three tools that will help buyers successfully secure a home, even if they also have one they need to sell:
1. Home equity lines of credit (HELOCs). This loan allows you to take up to 80% of the equity in your current home and use it as a down payment on your next house. With a HELOC, you can buy your second house without it being contingent on the sale of your first home, which can be a massive liability for buyers in today’s market.
2. Adjustable rate mortgages (ARMs). The introductory rate for an ARM is typically less than the interest rate on a fixed mortgage. It will go up over time, but it allows you to start low. Interest rates have increased recently, so this option is becoming more popular.
3. The bank can purchase the house on your behalf. Many buyers are competing with cash in this market. Realizing this, many banks will purchase your next home for you and sell it back to you if you qualify. For this program, you will need to pay 3% of the home’s purchase price, but that’s still relatively inexpensive considering how much you might pay by competing in the traditional market.
I constantly search for ways to give my clients the best chance of competing in this marketplace, so if you have any questions about these tools or would like to explore other options, give me a call or send me an email. I’d love to help you.