Today’s Homebuying market May be Hotter than Ever by David Floan, Executive Vice President of Loan Production

Considering a new home? Don’t be on the fence…buy it!

Evergreen financed more home purchase loans in May than in any other month in its 27-year history—proving today’s home buying market may be hotter than ever.

Here at Evergreen, we have plenty of reasons to be highly optimistic about the housing market. In fact, Evergreen had a record breaking month in May closing the highest number of home purchase loans in our company’s history. While this is great news for our family here at Evergreen, it’s even better news for homebuyers who may be considering buying a home. Here are a few promising new developments in the housing industry:

Price appreciation may be peaking: Homes continue to be affordable, despite recent increases in home prices. In fact, price growth appears to have peaked in several parts of the country, which according to analysts at Capital Economics, helps encourage a further rise in home sales and housing starts.*

Price appreciation combined with low interest rates is encouraging homebuyers to dip their toes in the water. However, there are still many homebuyers that perceive challenges in entering the home buying market, and here’s how Evergreen can help:

  • Large down payments not required: many potential homebuyers believe that they need down payments of at least 20%. In reality, loan programs offered by Evergreen require minimal down payments, often allowing the down payment to be a gift from a relative. In addition, many Housing Finance Agencies in local communities provide financial assistance for down payment funds or closing costs.
  • Your credit doesn’t have to be perfect: many potential homebuyers believe that they must have an extensive history of perfect credit to qualify for a home loan. Evergreen offers a multitude of home loans that allow for borrowers with blemished credit. An Evergreen Loan Officer can review your credit and assess your financing options.

Even homebuyers that have funds for a down payment and acceptable credit face a tough market due to limited housing inventory, where there are not enough homes to choose from and demand outpaces supply. National housing inventory in April represented a 5.9 month supply of homes at the current sales pace.** Generally speaking, fewer than 6 months of inventory reflects a seller’s market and in many cases, multiple offers on homes.

What this means for many homebuyers is the very real possibility of making offers on up to five homes and facing rejection on every offer. For a homebuyer, this can be quite defeating and causes many buyers to give up.

The Evergreen Solution: Security Plus Seller Guarantee™. Our focus at Evergreen is providing real estate agents and their clients with practical solutions to home buying challenges. Our Security Plus Seller Guarantee program provides for a fully approved loan amount that we stand behind and guarantee — or we pay the seller $1,000.***

Having a firm loan approval from a trusted lender is one of the most important components that a seller looks for when deciding which offer to accept.

Couple the Security Plus Seller Guarantee with our Ready.Set.Home.™ program and homebuyers have a very powerful tool in today’s market. Our program also provides clients with a free smartphone application that calculates home loan payments when out shopping. Plus, we can close more quickly than most lenders – 14 days if needed.+ Not everyone will need to close that fast, but this feature can be very compelling to a home seller who needs to sell quickly.

We’re optimistic that things are looking up in the home buying market and that it’s a great time to consider a home purchase. Rates are still low, housing is affordable, and with some planning and patience, you can reach your goal of homeownership.

About the author

David Floan is the executive vice president of loan production for Evergreen Home Loans. He leads all sales origination channels and directs the efforts of the company’s distributed sales force, including lead generation strategies, business planning, strategic alliances and recruitment.

*Source: Home prices started easing, to the relief of experts, Shaila Dewan, May 27, 2014.

**Source: April Existing-Home Sales Show Modest Improvement Behind Gaining Inventory, May 22, 2014, National Association of Realtors® news release.

***Applies to purchase loans only. To qualify, buyer’s Security Plus Approval/Seller Guarantee Addendum must have been issued by Evergreen and the Seller shall have executed the addendum with their signature at the time they execute the Purchase And Sale Agreement on subject property. Certain loan types do not qualify for this offer. Restrictions apply. Ask for details.+The 14-day close does not imply a guarantee of any kind and only references the historical service level provided by Evergreen on standard FHA, VA, and conforming conventional loans. Assumes expeditious and complete cooperation by all parties to the transaction.  Not all applications are eligible for a 14-day close, including but not limited to jumbo loans, renovation loans, loans brokered to other lenders, or properties requiring repairs. Not all applicants will qualify; certain restrictions apply.

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