Why You Should Get Your Home On The Market ASAP
Wondering if now is the best time to put your home on the market? Yes!
This week, the Wall Street Journal gave one of the best reasons to put your home on the market right now: Expiration of the higher federal loan guarantees. From the article:
As an emergency measure three years ago, Congress raised to as high as $729,750 the maximum loan amount that Fannie Mae, Freddie Mac and federal agencies could guarantee.
That made it easier—and cheaper—for borrowers in pricey housing markets to obtain mortgages, because the government guarantees that investors receive payments on those mortgages even if homeowners default.
What does this mean if you’re going to list your Los Angeles home for sale?
Very simply, it means it will be harder for home buyers to get a conventional mortgage (isn’t it difficult enough already?) if they will need a mortgage of more than $625,500. In higher priced markets, like Los Angeles and New York, the top guarantee limit will be $625,500. It will be much lower in smaller or lower priced markets. Government agencies, like Fannie Mae, FHA and Freddie Mac, stand behind more than 90% of mortgage loans in the United States. If a buyer needs a loan larger that $625,500, then they’ll have to get a JUMBO loan, resulting in higher interest rates, and possibly higher down payment requirements. These larger loans are also known as “non-conforming”.
The new mortgage loan guarantee limits are scheduled to take effect October 1.
Predictably, mortgage lenders will probably stop accepting non-conforming loan applications several weeks prior to the change in order to be sure they can close the loan prior to the October 1 deadline.
So, if you’re thinking of listing your Los Angeles home for sale in the near future, now would be the best time to do so.
You can read the full Wall Street Journal article here: Sellers Brace For New Mortgage Caps
Wondering why a home stager would be writing about mortgage news?
When listing your home for sale, the best thing you can to to assist in a speedy sale, for the best price, is to get a home staging consultation by a professional home stager.
A home staging consultation will provide you with a road map for preparing your home for sale so it is appealing to the greatest number of potential buyers. The greater your buyer pool, the greater your chance of selling your home quickly and more profitably.
If you need help preparing your Los Angeles, Pasadena or Arcadia home for sale, please call Michelle at (626)385-8852. We know what makes homes sell!™