Federal Reserve Scaling Back on Bond Purchasing

Welcome back to my video blog. Interest rates have been phenomenal for the past year. You may have heard that they are beginning to creep up, though. Why is that?

Right now the Federal Reserve is purchasing bonds, giving investors more confidence. This in turns creates steady and low interest rates. However, as the market begins to improve, the Federal Reserve will eventually scale back on its bond purchasing. This will cause interest rates to rise.

Although, we don’t know exactly when this will happen, we know it will happen. The Federal Reserve meets Dec.17th and we should find out more information about whether they will scale back on their bond purchasing.

If you are considering making a real estate move, it’s important to keep an eye on this topic. If you have any questions, please give me a call! Thanks for watching!

How Does Federal Bond Purchasing Affect the Market?

Welcome back to my video blog. Today I wanted to take the time to answer a couple of questions I’ve been getting asked about a lot lately.

What are interest rates doing?

As many of you know interest rates have been fluctuating lately. Why is that? There will always be fluctuation when there is uncertainty in the market. The good news, though, is because the Federal Reserve is not pulling back on its bond purchasing, investors feel more comfortable. This in turn causes interest rates to remain low.

Is it a good time to refinance?

With low interest rates, now is a good time to see if you qualify. Take advantage of the market and see what programs are out there that can benefit you.

If you have any questions, please give me a call. Thank you for watching!

The Pre-Approval Process

Thanks for joining me today! We have a competitive market. Homes are getting multiple bids; so how do you make your offer stand out?

The most important factor when you place your bid is to be preapproved. Keep in mind this is different from a prequalification. Preapproval means a lender has verified your employment history, income, credit and assets. Your preapproval will determine how much you can spend on a home and will speed-up your application process when you have found the home of your dreams.

There are three main elements a lender will look at during the loan process. They will first check your confirm your employment to verify a stable history and likelihood of continuance. They also want to know what kind of down payment you can make and where the funds will be coming from. Thirdly, they’ll check your credit. Do you pay your bills on time?

It today’s market, it is essential to stand out from other potential buyers. The best way to stand out is with a strong offer backed by a mortgage preapproval. Before you make an offer on any property, get preapproved. Sellers will not take you seriously otherwise and you may lose the home.
If you have any questions, please give me a call!