Guest Mortgage Expert Yousif Mohamed, Loan Officer at Movement Mortgage hosted by Bernie on IG Live #MortgageMonday
Amid COVID-19 much has transpired and more to be revealed that affects livelihood and particularly the space of home or even second home. If you have been undecided on a condo as your primary or vacation home or for investment, you should strongly consider buying at this time.
#1 Low Interest Rate
Many buyers hesitate or delay awaiting lower price yet if borrowing the goal should be lowest possible rate. A lower rate can increase purchase price allowing for more expensive property, larger layout, additional amenities.
#2 Inventory Supply
As condominiums are lagging in traction that single family homes are experiencing, a buyers market has ensued with some sellers reducing prices and some listings having negotiability. While overall inventory remains high, desirable buildings and floor plans are still trading at pre-pandemic asking prices.
#3 Population Influx
For last two years, South Florida has had aggressive population growth due to high-tax state relocation, 183-day residence, or those fleeing cold climates. With a larger share of purse earmarked and a lower price for more space, along with consistent 2% year-over-year appreciation on condos and the lifestyle, right-priced options on all levels sell. With companies allowing work from home and no or indefinite date of returning to office in 2020, people can work from anywhere and Miami is a top destination.
Pre-Approval Is Imperative, Necessary and Best
With condos, you don't look for one first, then seek financing. Get the pre-approval first.
Imperative — Not all condos accept financing equally. For example, some Associations accept only specific types of loans (limited allow FHA, VA) and have credit score minimum. In other cases, certain lenders don't finance certain condos. Knowing your loan position helps me to select the right condo building options and time efficiency.
Necessary — Many agents won't show without proof of funds, bank statement cash balance or the pre-approval. Particularly due to COVID-19, sellers also prefer only serious prospective buyers in unit and Associations for the amenities areas. It’s not safe to show, just to show.
Best — After ‘cash,’ the next best offer is ‘fast.’ With first choice decided, presenting your offer package to seller is stronger with pre-approval included and helps stand out if there are competitive offers.
Please contact me to discuss more.