As the summer rages on, so does the red-hot real estate market in South Carolina! As a mortgage lender, I have never seen conditions like this. Not only are we experiencing historically-low inventory, but the low interest rates are beginning to climb; this is putting many homebuyers in a precarious position. Getting money isn’t going to be as easy, or as cheap, as it has been over the past several years. But without cash in hand, it is going to be nearly impossible to buy the home of your dreams. These are just some of the reasons you may want to consider searching for private mortgage lenders in South Carolina versus going the traditional route!
Quicker Approval!
If there is one thing that the mortgage lending industry is known for, it is a long approval process. Most homeowners know that having a pre-approval is necessary for them to find a home that’s within their budget, but not many home sellers care much about the pre-approval letter. The only thing that speaks volumes in this atmosphere is approval or cash in hand. If you are on a tight timeline, then a traditional mortgage loan is going to be your best and probably only option.
Interest Rate Hikes are Making it More Difficult!
The rising interest rates are driving up your monthly payments. Since a traditional mortgage loan is calculated with the interest rate included in the debt-to-income ratio, it is pushing people out of their price range quickly. Homebuyers are going to have to adjust and look for something that costs less, or they are going to have to look for private lenders who offer a different option than the traditional hurdles and constraints!
The Necessity of Things Like Recent Event Forgiveness
Let’s be honest: COVID took its toll on many homeowners and credit ratings! When people were out of work, or worse – lost their businesses through bankruptcy, it tanked their credit rating, even when it was unavoidable. Things like recent event forgiveness might not look good to traditional mortgage lenders, but private lenders understand that outside forces can wreak havoc on good credit scores and don’t always indicate the ability that someone has to secure their loan repayment.
Interest-Only Loans
Interest-only loans allow you to pay only on the interest that you owe, and not worry about putting money toward paying down the principal. That is a great tool for people who are looking at very high interest rates that are driving up their debt-to-income ratio. If you want to secure the home of your dreams and wait out this market and economy, it can give you some breathing room to get back on your feet and start down the path of recovery, without having to rent and throw money out in the meantime.
As interest rates continue to hike and inventory remains historically low, now is the perfect time to consider nontraditional loans with private mortgage loan lenders in South Carolina, like Homespring Mortgage. Don’t give up your dream to become a homeowner just because things are uncertain right now. We can give you the security of homeownership, and you can worry about the rest later.
Contact us today to get started on finding you a loan that works and will get you approved.
