Today we learned that mortgage applications jumped 32 percent last week over the previous week. It was also recently reported that last month’s sales of previously-owned homes jumped to its biggest increase in six years. Rates are down and home sales are up – what does it mean for your mortgage?
Rodney Anderson, executive director and managing partner of Rodney Anderson Lending Services, says the “floodgates are opening and the phones are ringing off the hook” with home loan applicants. And 70 percent of those applicants are actually getting approved, he says.
The secret to that high rate of acceptance? Anderson says this time around people are realizing they have to verify their assets, income and pay attention to their credit scores if they want to get a loan. Having that triumvirate is the key to getting approved, he says, and more homebuyers understand it, which leads to better borrowers applying.
Anderson also says he does not see interest rates moving much higher in today’s market, and he would advise first-time homebuyers to use the opportunity to lock in rates the closer they get to closing. Don’t pay a premium to lock in rates for longer periods of time, he advises.