The Growing Importance of Making Timely Decisions When Buying a Home or Seeking a Mortgage

This following issue is of growing concern, importance, and timeliness.  What’s the issue?  
 
     Home Buyers taking extended periods of time making decisions regarding their home purchases and their mortgage financing.

     I just had a client that re-connected with me after having gone stone cold silent for an extended period of time.  I repeatedly tried to get them to respond to my email, texts, or calls, but got nothing.  The last time we had spoken, they had indicated that they were sure they could negotiate a better “deal” and a better price on the home they were viewing.

     Their call caught me somewhat off-guard.  Their message even more so.  This client told me they had:  

      A.  Made an offer on a home utilizing my Pre-Approval, provided to them months ago.  (Another issue.  Another blog.)

     B.  Are now buying the very same home they had hoped to buy all those many months ago. 

     What has changed during the interim months?  Interest Rates have jumped higher.  Substantially higher.  Enough higher that the dollars they saved through their months-long negotiations do not offset the increased cost in their monthly payments due to the higher Interest Rates.  

     In short, this Buyer no longer qualifies for the financing they need to buy the home they want.  They negotiated and rate-shopped themselves right out of home ownership. What else has changed during the months this client was out of contact with me?  

     The volume of real estate business being conducted.  More homes are selling.  Lenders are running at full capacity.  Rising Interest Rates have placed increased stress on them.  Processing and Underwriting times are longer.        

     Title companies are under pressure too.  Especially during certain times of the month or dates surrounding holidays, agents need to be aware that title companies may/may not be capable of Closing your loan on a date of your choosing. All these things are contributing to much more challenging transactions.  

     Only time will tell if Interest Rates return to a point that will allow my client to proceed with a purchase.  Or if the home they want is still available in the future.  But in the short term … it’s not looking promising.

      The example I provide above proves what can happen when timely decisions are not made and when there is no consistent communication between parties involved in a transaction.  It also proves the value of a client listening to the professionals they have chosen to work with.  With Interest Rates bouncing like they currently are, that importance will only increase …

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About MikeCastleRealtor

Mike Castle Real Estate Broker CalBRE#00620895 Cell: 831-588-1988 Fax: 831-435-7377 E-mail: mike.castle@mikecastle.com www.mikecastle.com Century 21 M&M and Associates 1500 41st Avenue, Suite 100, Capitola, California, 95010
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