The property we were looking at got bid up about 5% above asking price. Still looking. Anyone seeing any change this week in closings, lending, etc? The part about seeing very low rates for self employed with average credit score is interesting.
And thanks for the comments!
As for the low rate for the self-employed borrower, it would depend entirely on LTV, loan amount, credit score, if he paid any discount points, term of the loan, and, most importantly, on when the borrower locked his rate. I’m not trying to dampen your enthusiasm, just trying to provide the facts.
Rates are still low and you may have to pay a point or so, but, IMHO, artificial, because most Mortgage Backed Securities are being purchased by the government. Most investors are trying to maintain liquidity and a strong cash only position. I think, and it’s only my thoughts, that once the unemployment claims drop and the amount of mortgages in the pipeline finally close and fund, demand for MBS will return and there will be a great opportunity to purchase/refinance.
My advice for those that were looking at refinancing, but didn’t get locked, is to get an application in the system, supply the necessary documentation, and sit on it until rates get to where you want them to be. At that time I can push a button and get it locked in a matter of seconds. On a purchase like you are doing, do the same thing and when a contract is signed, it only takes a matter of minutes to add an address and lock it. If you mess around, rates in the afternoon could be a .25 of a point higher in the afternoon. Then you will be kicking yourself for not being ready.
Be smart and good luck.