WACO, TX – Real estate supply and demand is driving up prices.
“Be responsible. Don’t live beyond your means,” suggested Chris Allmay.
The current limit for conventional home loans is $ 548,000, but as of January 1, 2022, that number jumps to $ 647,000.
It’s a pretty big jump as Allmay describes it.
Bankrate.com calls it a record 18% jump.
Allmay is the branch co-manager of Fairway Independent Mortgage Corporation in Woodway.
Allmay told 25 News that people who want to borrow between $ 550,000 and nearly $ 650,000 would have had a harder time getting approved.
“A year ago it would have been more difficult. The guidelines were stricter,” Allmay said. “Maybe they should have had more money in the bank, maybe they should have put some more.”
He thinks the hope is to relieve some pressure at the top, which could be good news for buyers in central Texas in a price range below around $ 300,000, where the bid can’t keep up with the price. demand.
âThe person who benefits the most is the one who has the capacity to borrow a little more,â Allmay said.
In central Texas and many other housing markets, this is what it takes for buyers to compete with multiple offers.
âSellers get so many offers that they really only look at classic loan offers,â Allmay said.
Her advice, don’t focus on interest rates or what you’re pre-approved for.
Spam comes in almost every day, full of offers.
âAll of them are just hooks to get people to fill out applications,â Allmay said.
He recommends focusing on getting your finances back on track, paying off debt, and improving your credit score.