Why Is Now the Time to Make Your Move?

Selling in the Indianapolis area? Get a free home value report     Purchasing in the Indianapolis area? Click here for full MLS access

Today, we have a very special guest! Phil Lillge of Parker Mortgage Group, our preferred mortgage lender, joins us to discuss how interest rates affect buyers in the Indianapolis marketplace.

Many buyers don't realize that a small jump in interest rates will greatly affect the purchasing power of buyers. Right now, interest rates are at an all-time low, and it's only a matter of time before they begin to start creeping up. When we bought our home, interest rates were around 9% for a 30-year fixed-rate mortgage! You can currently lock in a rate as low as 3.5-4%! 

As home prices and interest rates rise, the amount of home you can afford is negatively affected. When lenders take a look at your debt-to-income ratio, higher rates will mean higher payments, which means you will have a less favorable ratio when looking to buy a home. The overall expense of interest over the life of the loan will also be factored in, and will affect your ability to afford the home you desire. Bottom line: the cost of waiting to make your move is substantial! 
 
If you would like to take advantage of this fantastic market, or if you need real estate assistance of any kind, give us a call or shoot us a quick email. We would love to hear from you!

Why You Need a Pre-approval in This Market

Selling in the Indianapolis area? Get a free home value report    
Purchasing in the Indianapolis area? Click here for full MLS access

Last time we spoke about the importance of beginning the pre-qualification process because it paves the way for you to be pre-approved for a mortgage loan. We have Phil Lillge with us again to help explain some of these differences.

As we said last time, it's important to provide your lender with W-2 Forms, pay stubs, and tax receipts if you want to move from being pre-qualified to being pre-approved. Once you are pre-approved, you can then begin looking at properties. You'll want to give your real estate agent the letterhead that designates you as being pre-approved because in a hot seller's market like the one in Indianapolis, you'll need it to stand out from other buyers.

Being pre-approved or pre-qualified was not a necessity in the past, but now it's almost a requirement. All sellers are going to be reluctant to sell you a home if you cannot even prove that you can afford it. This is especially important right now, as we find ourselves in a seller's market. This could help you differentiate yourself from other buyers, and it could help you win out in multiple offer situations.

Hopefully this information has been helpful to you. If you need assistance buying or selling in Indianapolis this spring or summer, please don't hesitate to reach out to us.

How to Get Pre-qualified in Indianapolis

Selling in the Indianapolis area? Get a free home value report  
Purchasing in the Indianapolis area? Click here for full MLS access

Today we're going  to be speaking about how you can become qualified to buy a home. In order to do this we've invited Phil Lillge of Parker Mortgage to help explain some things.

The process of becoming qualified for a mortgage loan is two-pronged. The first part is sitting down with your lender and evaluating your position and your needs, as well as your qualifications.

Once you have that initial conversation, it becomes much easier for the lender to find you loan products that can help you comfortably afford a home. You'll have to talk about employment history, credit history, and other things like income history and insurance information.

The next step in the process is to determine which program would fit your needs best depending on what your profile looks like. Not everyone will benefit from the same lending program, so it's important to be honest when you consult with a lender, otherwise you may end up in a very sticky situation when you go to close on a home that you cannot really afford.

Hopefully this information has been helpful for you. If you have any more questions or concerns, please don't hesitate to contact us. We're always here to help!