Be Prepared with a BOE Pre-Approved Loan

The temperatures outside are heating up and so is the housing market. Coming off an already record-year, the spring 2021 home buying season is already setting a record-breaking pace.

“It is absolute March Madness already,” said Jake Ott’s manager of the Bank of England Ole Miss. “The tournament hasn’t started but the buying season and the madness of it definitely have.”

Driving the market is tight inventory and high demand, soaring new home construction costs and low interest rates. It’s a national trend that isn’t leaving Oxford out, said Ott.

He expects as weather improves further and the pandemic restrictions wane, the market will begin to boil over with folks looking to buy vacation homes and condominiums in Oxford. “The second home buyers are chomping at the bit. People are getting more excited in general. There is just kind of a buzz, and when people get excited, they buy stuff like condos,” said Ott.

In the more traditional residential market, “Folks are all looking for four-plus bedrooms and a little privacy with a few acres,” he added.  When a home matching that description pops up in the MLS (multiple listing service), said Ott “it’s going to be gone in a number of hours.” For buyers, that means “you really have to be able to pull the trigger with confidence the second you hear about it.”

The best way to do that, is to be pre-approved for a home mortgage loan and attaching it to an offer. Ott, and his team at the Bank of England, specialize in matching clients with the best financial product for their needs and making sure they get the jump when it comes to securing their dream home.

“You have got to have the money. It is such a sellers-market, that they can pick and choose offers. If you are not preapproved or you really don’t have your ducks in a row, you are going to need a 45-day contract. Someone may offer a few thousand less dollars, but if they can offer a 30 day contract the seller may take that. In this market, it is all about strengthening the offer,” said Ott.

“If someone calls to get preapproved, they needed to be preapproved yesterday,” said Ott, adding his staff is making those calls priority right now. “Folks who do not have their hands on all the paperwork we need for income, assets, credit, work history or address history, you better get it together or start working on it,” he added.

To really get your financial “ducks” in a row, Ott recommends sitting down to begin going through the preapproval process three to six months before you want to purchase a home.  Prospective buyers will need to have access to a range of financial and personal information including: a driver’s license, recent tax information, pay stubs, bank statements, their current mortgage paperwork and other loan information. Self-employed, recently unemployed and student loan holders with or without forbearances should be prepared to provide additional documentation, he cautioned.

First time homebuyers need to start as early as possible, said Ott. Oftentimes the credit reports will show credit nicks and dings an applicant might not be aware of, which can take weeks to get cleared up. In addition, establishing a budget for home purchase is a must. “One of the best ways to establish a budget is to talk to a mortgage expert and back in to it,” he said, noting he will walk through the entire scenario, from down payments to insurance with prospective buyers

For customer’s looking to refinance, BOE has a range of products that can help you shave years of your loan, points off your rate, or put some extra money in your pocket every month. Ott said a recent national survey showed a large majority of U.S. homeowners with a mortgage could secure a lower interest rate with a refinance – but Ott urged them to hurry – rates have been going up.

Changes in the industry driven by COVID-19 are still delaying the traditional mortgage and home buying process despite a gradual opening up and rescinding of previous safety measures. Everything from appraisals to home closings is taking longer, said Ott, which makes being prepared even more important.

Homeowners and home buyers to give him and his team a call to discuss those circumstances and goals. The range of BOE products means there is a solution for almost every problem – there are loans with different down payment options, including ones that allow borrowers to avoid paying private mortgage insurance (PMI), allow them to make upfront premium payments.

For individuals who like to go the contactless route first, a pre-approval application is available online. Fill it out anytime day or night, and Ott will be in contact as soon as the next business day – or earlier!

Contact Jake Ott and the BOE Ole Miss team at boeolemiss.com, by phone at 662.832.4663 or email at jott@boemortgage.com