If you are a potential home buyer, be aware… Albuquerque’s housing market is still going strong. It’s not just Albuquerque, but Rio Rancho, Bernalillo; nearly all of New Mexico experienced record home sales, and much lower number of days on market than the nationwide average of 75 days. For instance, Bernalillo County came in with a staggering average of just 42 days, and Los Alamos County at just 26 days on the market. As of October, there were over 4,500 more homes sold in New Mexico than this time last year. (source: Albuquerque Journal)
What does this mean? There is a great deal of competition out there. Where as before, you may have one or two folks competing for a home, you may now have as many as 6 or 7. That is great for the seller, but not so good for the buyer. We are talking to clients who are in the process of buying and it’s been tough. First time home buyers that are generally going through a FHA mortgage may find themselves out competed by more seasoned buyers who have money to put down. That doesn’t mean they’re out of the game and some of our lenders are finding they prefer better scores over less than stellar credit, as it helps underwriting.
In short, many of our clients are finding themselves to be more competitive buyers than expected because they’ve been proactive about their credit and because their files are cleaner, the underwriter has less of a problem having to downgrade the loan to ‘make it fit’.In circumstances like this, when you have only a limited amount of time, lenders tend to accommodate the buyer with the least amount of stipulations. Those that have less than a perfect file, may find themselves in a position of having to undergo credit restoration and miss out on that perfect home.
We get calls like this all the time which means sadly, they’ve missed out the house they wanted.
Our advice? Get in front of it. If you have blemishes on your credit, or if you simply aren’t sure, give us a call before you chat with your lender. The last thing you want to is find out after it’s too late you don’t qualify for an auto-underwrite because of a collection account from years ago. Be pro-active and don’t get passed up.
We can help.
Scoreology – The science of credit repair