Stinger said his clients were deprived of their homes when lenders didn’t lend up to the seller’s asking price, but the home’s appraised value instead – sometimes a difference of thousands of dollars.
Stinger said during negotiations that he helps clients state how much they guarantee to step in if the valuation is below asking price.
“The seller’s market is increasingly asking for creative measures from buyers to enable them to buy a home,” he said.
Fiber Federal Credit Union senior vice president and chief credit officer Joe Amrine said that despite strong demand for homes, mortgage rates are lower today in his business than in June 2020.
“Your instinct would be that demand goes up, rates go up, but we just haven’t seen it,” he said.
Home buyers could see thousands of dollars added to the costs of new homes by overhauling state building codes.
The base rate on a 30-year home loan is 2.75% as of Tuesday, Amrine said, but can increase depending on the lender’s credit history.
Amrine said that since mortgage rates started falling in June 2020, the credit union has seen a “significant” increase in mortgage applications and amounts borrowed.
John L. Scott Real Estate broker Diane Lokan said that at the start of the pandemic, low interest rates allowed buyers previously excluded from homes to afford a lower monthly mortgage payment.