Should Current Interest Rates Affect Your Buying Opportunities? With Brooks Kelly

Today I talked with Brooks Kelly about interest rates, jumbo loans, renting versus buying, and other topics affecting decisions in the real estate market. Brooks is a Senior Loan Officer with Mortgage Link in the Dallas-Fort Worth metro area and deals with these issues daily. In addition, Brooks reflects on the hyper-competitive housing market of the last few years and the opportunities available today. Listen as Brooks shares insight on these topics and his prediction of the real estate market in 2023.

In This Episode:

  • [02:26] Strengthening your buying power, enabling a jumbo loan for high-end properties. 
  • [04:33] Required down payments have changed. Should you put all the money you have into a down payment.
  • [06:01] Looking at interest rates from a historical point of view, do you base a decision to purchase on interest rates?
  • [11:58] The importance of keeping a credit score of 700 or above.
  • [17:37] Qualifying for the loan. You may qualify for more than you expected. 
  • [24:11] The truth about the housing market and the fear generated by the media. 

Key Takeaways:

  • Interest rates have been low during the past few years. However, historically they have been much higher. Therefore, it’s an adjustment for borrowers to accept that current rates are still lower than several years ago.
  • Your credit score is the determining factor of the terms of a home loan. In addition, credit scores affect the interest rate and the loan package obtained. Therefore, keep your score at 700 or higher and pay your bills on time.
  • Deciding to rent when you can purchase is making the property’s owner’s payment.  As you make the payments, the owners’ equity increases while you have gained no equity. Buying a home is much wiser than renting.

Meet Brooks Kelly:

Brooks Kelly is the EVP of National Sales and Mortgage Loan Originator with the Mortgage Link. A boutique mortgage lender who provides their partners and clients with the consultation and service clients expect when making the largest purchase of their life. Mortgages are the only thing Brooks knows. Coming out of college at Texas Tech into the new home business and then quickly transitioning to mortgage in 2007, he has helped thousands of clients achieve their dream of homeownership. In his spare time, he loves to play golf and coach his two boys on the baseball field.

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