There is just something about the sunshine and blue skies that get folks dreaming about purchasing a home – it’s a great time to explore new neighborhoods and visualize living in a new home. But before you start any serious home shopping, it’s important to speak with a real estate agent and mortgage broker to understand what makes sense financially – for you.

Housing Market in Missouri Summer 2018

When homes are flying off the market within days, it’s easy to think a listing that’s more than a week old is a red flag, but that’s not always the case. The delay is often a good thing for savvy buyers – delays in offers can cause the home’s listing price to come down.

The Market Is Hot

The market is hot for sellers, homes aren’t staying on the market for long. Good news is that prices will continue to drop through October. By August, nearly 14 percent of listings get a price cut.

Check Your Credit Score

In order to qualify for a mortgage or home loan, you must have a good credit score. There are a lot of great websites online that can help you understand your credit score. A FICO credit score can range from 300 to 850. A good credit score means a solid chance at getting the lowest possible interest rate and best loan. What do we mean by a “good credit score”? Most loan experts say a credit score of at least 740 means low interest rates.

Get Preapproved

If you are in the market as a serious browser, it’s a smart idea to get preapproved for a mortgage loan so that when you do find a home you would like to place an offer on, you can pounce on the offer early. As with most markets, you are going to compete with a lot of other buyers. Getting preapproved is easy: you just need several documents. Typically, you will need to submit your tax returns and W-2 forms for the past few years, as well as your current paycheck stubs for three or more months as well as a list of debs and assets you carry.

Once you get preapproved, steer clear from making any big purchases, missing debt payments, and changing jobs.

Good News – PMI Is Getting Cheaper

If your offer on a home comes out on top, your private mortgage insurance (PMI) is getting cheaper: PMI lenders MGIC and Radian lowered their rates earlier this year, and more PMI lenders will soon follow suit. PMI is typically required when homebuyers have a down payment of less than 20 percent.

Find a Great Real Estate Agent

Before you find the house, you need to find a great real estate agent. A great realtor will help you navigate the world of real estate. Thankfully, Greg Crawford at The Mortgage House is a skilled and trustworthy mortgage broker and real estate agent serving cities like Springfield, St. Louis, and Kansas City, MO, and will be happy to help you find a home, too. Just give the office a call at (417) 782-7800.