Yes you read that right. Kalama Kim, (R) from our Kapolei office says “The boat may be setting sail soon, as in, you don’t want to miss the boat for buying opportunities here on Oahu.”
Here is a breakdown of what is forecasted for the market and why you may want to catch the boat now instead of waiting:
- Prices continue to rise (5.8% increase last year), which could price some buyers out of the market
- Changes in loan underwriting may have an affect on the market
o Stricter Debt-to-Income requirements (3% change in debt-to-income requirements affecting purchasing power)
o Elimination of specific neighborhoods from USDA 100% financing eligibility
o VA Loan Limits reduced by over $100,000
o Fed has indicated they will let mortgage rates rise in 2014
So what can you do to catch the ship? Take advantage of ZERO percent financing, low interest rates, low prices, liberal loan limits and debt limits! Right now, home prices are low compared to what TZ Econonics’ Paul Brewbaker forecasts for the next few years. He believes the median sales price for homes on Oahu will increase from $629,500 to $850,000 within the next 2 years.
Where do you start? We asked Loan Officer Joy Skorge from Pacific Access Mortgage to give us her insight on where to start:
“One important tool buyers can use to gain an advantage in a competitive market is to get Pre-Approved. A Pre-Approval letter is stronger than a Pre-Qualification. The difference between the two is that a Pre-Approval is based upon your documentation – income, assets, as well as your credit report. A Pre-Qualification is based upon verbal information only. Getting Pre-Approved defines the sales price you qualify for, your monthly payments, and how much cash is needed to close. Pre-Approval also communicates to the seller you have already taken steps to ensure you will be able to close the transaction when your offer is accepted. Calling us at Pacific Access Mortgage is the first step, we are happy to walk you through the process.”
So tip of the season: catch that ship before it sails by getting Pre-Approved! We welcome to you to contact any one of Coldwell Banker Pacific Properties knowledgeable independent agents.