Spring Buying Season Has Started And Home Sellers Have New Roadblocks To Consider

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The end of the NFL football season traditionally marks the start of the Spring Buying Season for homebuyers and homebuyers-to-be.

I don't have any facts to back that up -- it's mostly real estate folklore -- but just like in year's past, purchase activity among my clients has picked up post-Super Bowl.

But it takes two to tango (or something like that).

This year, there's more to the story than just the buyers.  It's the sellers that need advice, too.

This year, home sellers are facing a different selling environment than earlier this decade.

In addition to homes inventories reaching nearly 10 months nationwide, home buyers are limited by changing mortgage guidelines.  This means that there more homes are available to a theoretical smaller set of buyers. 

More supply and less demand means that home prices should see downward pressure overall.  In your neighborhood, of course, it could be a different.  After all, the national real estate market is nothing but a giant mosaic.

But the biggest challenge to home sellers is that they are not just home sellers.  They are home buyers, too.  For many of them, the goal is to sell the current residence and buy a new one.

For this reason, home sellers need to be acutely aware of what evolving mortgage guidelines mean to them. 

The most important "gotcha" is that once your home is for sale (officially or un-officially), mortgage lenders will not want to remortgage it for you.  Listing your home on the MLS will, in effect, trap your home equity until your home is sold.

Therefore, if there's even a remote chance that you'll need your home's equity for a downpayment on your next home, it's just good defense to get that equity out today -- before you list your home for sale.

Also noteworthy is that stated income mortgages are growing scarce.  This means that it will be more difficult to qualify for a new home loan while the existing home loan is still on the books.

As always, financial machinations require advance planning and qualified advice.  This Web site can only take you so far.  For the last step, reach out to your personal mortgage planner, or if you're holding an orphaned mortgage, try reaching out to me.