[In this article, Sean Erenstoft discusses the fed’s recent interest rate hike. He explains the need for potential homeowners to pre-qualify for loans if they think they might purchase property in 2017.]
If you are thinking about purchasing a property or applying for credit, the feds just made it tougher to do. Whereas lower interest rates “stimulate” the economy by lowering the cost of money to all of us who rely on credit, higher rates denote a tightening of the belt.
What this means is borrowing costs (interest rates) will go up over the next quarter. Property buyers sitting on the sidelines may want to adjust their timetables to consider getting pre-qualified and jump into the market sooner than later as interest rate hikes are not expected to slow down given the improvements in our economy since 2008.
For many first-time homebuyers with decent-to-good credit, now is the time to get interest rates locked in for a loan. Of course, your lender may have incentives which enable them to lock in the interest rates you are eligible for despite adjustments elsewhere in the financial industry.
Given that property purchases take several months to conclude, you should be thinking about what your goals are today to ensure that you don’t get burned by procrastination.
Here at Sotheby’s, I’m surrounded by capital management specialists dedicated to help you get your ducks in a line. Give me a call to begin the discussion of getting you pre-qualified for a loan and to help you nail down that perfect property to call home.
As we say in the business: Time is of the essence. With interest rates creeping up, you should act now to assess your ability to buy a property during 2017.
Sean Erenstoft is a Sotheby’s realtor assisting first-time homebuyers. He caters to Millennial and Gen/X homebuyers and their reliance on technology to help them both on-the-market and off-market listings. Sean Erenstoft can be contacted through his website.
This article: Sean Erenstoft discusses the fed’s recent interest rate hike and many more can be visited at Erenstoft’s blogsite.