real estate agent

Real Estate Agent: Buying Vs. Selling Agent

Most of us come to a real estate agent for two primary reasons: either to sell or buy a home. Experts suggest it is much better for the customer if these transactions are done separately, and also through separate representatives. One house vendor compares it to trading in your used vehicle and then getting a new one from the exact same car dealership – you will never obtain a great offer on your trade-in.

Advantages of A Separate Buying and Selling Agent

People stand out at what they understand

Real estate agents often stand out at either marketing or buying a home. An excellent listing or buyers agent might be wonderful at marketing a property. This will include being able to take care of a combination of direct-mail advertising, advertising and also online publishing-anything it takes to attract buyers to visit the residence.

A selling agent will certainly likewise be comfortable with prepping the home to buy and will also recognize all that this entails. They will likewise recognize everything about a neighborhood, own a healthy and balanced network of interested purchasers, will be a smart mediator and also do their utmost to safeguard the best price possible for the seller, as well as quickly as well.

An excellent buying agent will certainly be a great listener, patient and genuinely enjoy showing residences. They are detailed oriented, follow up well and also have an in-depth understanding of local communities, their background, schools and also how they sit in the local market.

Keep it Local

An additional merit of having different buying as well as selling agents is that you may own a house in one city and sell a property in a different one. The same applies if you are buying in one community as well as selling in another neighborhood across town.

In this situation, it would only make good sense to have separate buying and selling agents If you use the same selling agent in your existing community to help you buy in an entirely separate location, they will not know the areas as well as this will undermine their capacity to discuss well on your behalf.

Gain the customer database of buying and selling agents

By having different realtors for different property purchases, you get the client database of each specialist. When one representative specializes in selling or buying, they collect a wonderful clientele they can take advantage of when working with an exciting residential property.

Keep the same requirements as you select your purchasing or selling agent

If you decide to maintain separate buying and selling agents, you need to make sure that you find the best. The distinction in between a typical or superstar representative can mean gaining or losing thousands of bucks in your pocket. You should work with a professional when you make the most significant purchases of your life. You’ll find lots of real estate agents in Myrtle Beach, make sure you find the best one.

Call Full Potential Real Estate if you want to work only with the best, trustworthy, and experienced real estate agent in Myrtle Beach.

Full Potential Real Estate, LLC
Myrtle Beach, SC 29577

Possible Effects of a Recession on The Housing Market

The U.S. economy has seen its fair share of economic downturns. Many of us may recall the Great Recession that lasted from 2007 through 2009. Here is some information from a seasoned real estate agent.

The unemployment rate soared during that period, while home values plummeted. It was difficult to be a homeowner or real estate investor back then.

The housing market is soaring right now. The housing market is still at record levels, with buyer demand soaring.

However, an economic recession could cause some major changes in the housing market. If the economy takes a significant turn for the worse, here’s what might happen.

Tips From Real Estate Agents

The red-hot stock market may finally cool down

Although there are many criteria that define a recession’s severity, the most common is one marked by high unemployment. Stock values can sometimes plummet during recessions. However, that is not always the case. Similar to stock values, home values can also plummet in a recession. However, this will depend on factors such as borrowing rates as well as buyer demand.

It could lead to a drop in prices if the U.S. economy falls into recession territory, as some financial experts warn. However, this is not always a good thing.

According to the National Association of Realtors, home prices rose 15% annually in March. This means that home prices can fall without triggering a crisis situation wherein countless homeowners are left underwater on their mortgages.

Inventory is low and demand is high, which is the main reason why home prices are so high right now. A recession could lead to less demand, especially if mortgage rates continue to rise or remain high. This could lead to lower home prices.

However, unless the housing inventory increases quickly, it’s unlikely that we will see a drastic drop in home prices. Because supply is still so low, the supply of homes available on the market was just two months as of March 31st. This is a significant drop from the normal four- to six month supply in an equalized housing market.

Even a drop in buyer demand, because inventory is so low, shouldn’t lead to a housing market crash. It might actually open the housing market, which could allow financially secure first-time purchasers to have a chance at property ownership, as well as real estate investors, to purchase income properties more affordably.

Are homeowners concerned about a possible recession?

Homeowners have record amounts of equity right now. Even if there is a recession and home prices fall, equity should not be lost.

A near-term recession may actually have minimal impact on home values, given the fact that there is still very little inventory in the housing market. This is something that current property owners can take solace in.

Call Full Potential Real Estate, LLC now if you’re looking for a real estate agent in Myrtle Beach.

Full Potential Real Estate, LLC
Myrtle Beach, SC 29577

selling your home

Do You Need To Renovate Before Selling Your Home?

selling your homeThe most common question about selling your home is whether or not you should renovate it beforehand. You want it to be sold for more than what you paid. The truth is that the “right” answer to this question is complex because some renovations or home additions won’t increase the value enough for you to break even.

This is what you should know if you are asking about the renovations that you must complete before you sell your house.

Home Renovations Before Selling Your Home

What do Home Buyers Really Want?

There are two types of buyers you will encounter: those who want a home that is ready to move in and those who want to fix it up or flip it.

Home buyers are looking to buy a house that is ready for immediate occupancy, while home flippers are looking for something different. Buyers want a home that is comfortable for their family and won’t require major renovations.

Investors looking to get deep discounts on homes are called house flippers. They are skilled in fixing up homes and then selling them to buyers for a premium. Maximizing profit is their goal.

What do Home Sellers Really Want?

Home sellers want to sell as soon as possible and for the best price. This is why most home sellers are willing to do minimal work. Many homeowners aren’t planning on moving anytime soon, and they want to make costly renovations such as a bathroom or kitchen remodel.

You should plan renovations based on the type of buyer you are looking for when you sell your house. You might find guidance in the seller’s pre-inspection report to help you plan your work.


The duration wherein you intend to live in your home. You may not see a return on your investment for all renovations, so it is worth making major renovations while you still have the opportunity to enjoy them. You can renovate your kitchen if you plan to sell your house in five to ten years. The renovation will allow you to have fun while still receiving a significant portion of your investment back at the time of the sale.

In other words, you might not want to start a kitchen remodel if your move is in less than a month. You shouldn’t expect your fixer-upper to sell for the same price as the move-in-ready home next door.


What amount do you need to prepare your home for sale? Are you aware of the cost of selling your home? Do you have the skills or need to hire someone? Don’t spend too much on renovations because it will decrease your sales proceeds. Consider selling your home as-is if your remodel costs more than it is worth.

List Price

What is the best price to sell your home in Myrtle Beach? Even the most expensive renovations won’t increase your home’s value if you live in an area with low-priced homes. This is something to keep in mind when you are thinking about renovating.

Things to Fix Before You Sell Your House

Making some improvements to your home will make it more appealing and easier to sell. A key part of maximizing your profit on a sale of your home is staging it.

A deep clean, a new coat of paint on the interior, landscaping, and improvements to energy efficiency are some of the best ways to increase your home’s value.

What are the best ways to pay for home renovations?

Your home is more than a place where you live. Your house is also a savings tool. When you are ready to make major renovations or other major projects, you can use the equity you have built by applying for a cash out refinance. A home equity loan, or a line of credit could be an option.

Listing agents are real estate agents who specialize in helping home sellers. They can help you determine the best way to sell your house quickly and at the highest price.

Listing agents can help pinpoint the areas of your home that will yield the best renovation results. They can tell you, for example, how much your house is worth if you remodel the kitchen.

They will also consider the costs of the surrounding area, including the property’s condition, age, features, lot size, and other factors. The listing agent will also keep an eye on the market conditions and how they can impact your home.

The Best Renovations Before You Sell

Modernized bathrooms and kitchens are a popular choice for buyers as they can make a first impression on the entire home. Renovations must be adaptable to market changes and accommodate a wide range of tastes.

These are the best projects to add value to your home:

  • Kitchen renovations
  • Bathroom renovations
  • New flooring
  • Repainting
  • Upgrading Garage Doors
  • Replacing Stone Veneer Siding

Call Full Potential Real Estate, LLC now if you are looking to sell your home. Our team is ready to help make sure that your house sells fast at the best price possible.

Full Potential Real Estate, LLC
Myrtle Beach, SC 29577


buying a home

Secrets to Buying a Home

If you’re buying a home, there are a few things you need to remember. These will help you make an informed decision before you make a huge investment

Tips When Buying a Home

Keep your money where it is

It is not a wise decision to make large purchases or to move your money for more than three to six months prior to purchasing a home. Credit scores are not something you should take lightly. Lenders want to see that your credit history is solid and that you are reliable. They also need a full paper trail in order to get the best loan for you. Lenders will not approve loans if you have too many credit cards, accumulate excessive debt, or purchase large-ticket items.

Get Pre-Approved For Your Home Loan

It is important to know the difference between pre-qualified buyers and those who have pre-approved mortgages. Anyone can be pre-qualified for loans. Pre-approval means that a lender has reviewed all your financial information to determine how much money they can lend you. Pre-approval will help you save time and money so that you don’t waste your time looking at houses that you cannot afford. Pre-approval allows you to compare rates and find the best deal.

Avoid Border Disputes

A survey of your property is essential in order to know what you are buying. It may be possible to avoid a dispute with neighbors by knowing exactly where your property lines are.

Don’t try to predict the market

Do not obsess about trying to predict the market or when the best time is to buy. It is impossible to predict the housing market. When you are able to afford your dream house, it is the best time to purchase. Real estate is always changing. It goes up, it drops, and then it goes back up. You’ll likely miss out if you wait for the right time.

Bigger isn’t always better

Everybody is attracted to the most beautiful, largest house on the block. When it comes to houses, bigger is not always better. Real estate agents have an old saying that you shouldn’t buy “the biggest and best house on the block”. A big house appeals to a small number of people who will not be able to buy it again. Your home will only increase in value if it is comparable to the houses around it.

You are Buying a Home – Not Dating It

It is a mistake to buy a house solely on your emotions. You might make poor financial decisions if you fall in love. Your emotions and your instincts are two different things. You should follow your instincts to recognize that you are getting a great home at a great price. You shouldn’t be obsessed with the backyard or paint color. This is an investment so be calm and wise.

Inspection is a Must

Hiring a home inspector before you buy a home is a must. This will cost you about $200, but it could save you thousands. The sole responsibility of a home inspector is to give you information that will help you make an informed decision about whether to purchase the house or not. This is the only way to obtain an impartial third-party opinion. You can use the inspection report to lower the home’s price if there are any problems.

Talk to Neighbors

Get the lay of the land before you buy. Many homebuyers are devastated when they find the wrong neighborhood and feel they have lost their dream home. To see the happenings in the area, drive by the house at any hour of the day. To make sure that it’s something you can handle on a daily basis, do your daily commute to and from the house. Locate the closest grocery store or other services. Even if you don’t have children, it is important to research schools as they can impact the value of your house.

Call Full Potential Real Estate, LLC now if you need the help of a real estate agent when purchasing a home.

Full Potential Real Estate, LLC
Myrtle Beach, SC 29577

home buying

A Checklist When Buying A Home

It can seem like a full-time job to find, buy, and move into a new home. A checklist of the most important and essential “to-dos” items will help you stay organized when you’re buying a home.

Tips To Know When Buying A Home

Pre-approved for a mortgage

Knowing what a lender is willing to let you borrow and at what interest rate will give you a better idea about what you can afford. Keep in mind that longer amortization periods, such as a 30-year or a 15-year mortgage, will result in higher interest rates over the course of time. If you believe rates will drop over the term of your mortgage, only choose a variable rate.

Find the right broker

While the top seller in your area might be great for buyers, it’s not enough to work with the best real estate agent. You need someone who listens to what you want and can help you find it. Do not waste your time looking at homes that aren’t right for you or your budget. Follow your instincts.

Get in touch with an insurance agent

It is important to have homeowner’s insurance. Your agent, just like your realtor should be consulted about any potential home purchase. They can help you choose the right insurance policy for your new house by providing advice about factors that could affect your insurance premiums.

Calculate your monthly expenses

You should consider not only your mortgage payments but also taxes and insurance, as well as utilities, maintenance, and cleaning costs. You should include semi-annual and annual expenses such as cleaning gutters and maintaining heating and cooling systems. While you don’t know the extent of major repairs that may be required, you can estimate how much each month will cost and whether your budget can support it. You should always leave yourself some leeway and save money for any unexpected costs when buying a home in Myrtle Beach.

Concentrate on a home inspection

Hire a reliable home inspector and take your time. The home inspector will inspect the roof, cooling and heating systems, foundation and other details. You can also take measurements and think about where you would like to place the furniture. You should be ready to think about how much you love the house, in case of the inspection results in costly repairs down the line. Depending on whether your offer was inspection-contingent, you may need to negotiate.

Trusting a mover

Talk to as many people as possible, especially family members, friends, and neighbors who have recently moved. Before you start packing, make sure you take a detailed inventory. This is especially important if you have movers to pack your stuff for you. You are giving everything to them and putting it on their truck. As is moving insurance, trust is crucial. Make sure you have insurance that covers loss and damage.

Customizing your insurance policy

After you have placed a bid on a property you will need to consult your agent about the best coverage for you. Make sure you take an inventory of all your belongings. You may also want to consider adding coverage for your home’s features like water heaters and HVAC systems. If you’re taking out a mortgage, your policy must be in place before the closing date.

A declarations page will be required by your lender to show proof of payment for the first year’s premium. Your insurance could be added to your monthly house payment along with taxes. Ask your agent about any discounts and make sure you review your policy annually to ensure that you are adequately protected in the event of unexpected life changes.

Call Full Potential Real Estate, LLC if you need the help of a professional when buying your dream home.

Full Potential Real Estate, LLC
Myrtle Beach, SC 29577

buying a home

Things to Do When Buying A Home

Buying a home is a major financial and personal decision for many. You can make it happen with a little knowledge. All it takes is three steps: Get ready to go, get set, and get ready!

Tips For Buying A Home

1. Get ready

Are you ready to become a homeowner? If you are motivated, you can easily find the time and energy required to buy your first home. Money is not the only thing that matters. You might not find it as daunting as you think. When you have a budget, you will know how much you can borrow and what you can afford. Then you are on your way to homeownership. These are the three steps to get you started on your journey to homeownership.

Be sure you’re credit-worthy

Your credit score is the first thing you need to know. Your credit score is a key factor in determining the amount you can borrow and what interest rate you might be eligible for on your mortgage. Make sure your credit scores are as high as they can be before you apply for a mortgage. A lack of credit history and high credit card balances may make it difficult for someone just starting out. Credit cards and unsecure debt should be paid first. Student loans and car loans are usually less problematic. This can be a huge advantage when you establish credit history by paying your student loans on time. The amount of down payment that you will need to make can be affected by your credit score.

Establish a Budget

Next, calculate how much you can borrow and what you will pay each month for a mortgage. You should create a budget that is based on your income, even if you expect an increase, and all your monthly expenses including student loans, car payments, and health insurance. Understanding that monthly mortgage payments are only a part of monthly housing expenses is important. Additional costs such as homeowners insurance, maintenance, utilities, and property taxes will need to be estimated. These will only be estimates until you find your dream home. However, accounting for these costs first will allow you to set a realistic price range.

Make a down payment

Consider your down payment. You should consider paying a downpayment of 20% of your total purchase price if you can. There are also more affordable options, which can be as low as 3.5%. The options available to you will depend on your financial situation. Consider the closing costs. You will usually pay the first year’s homeowners insurance one year in advance. The closing costs include title insurance, title fees and recording fees as well as loan origination fees. To find out how much down payment you can afford, consult a mortgage advisor as soon as possible.

2. Get set

Once you have a good idea of your budget and your borrowing power, it’s time to start making your next moves.

Get a mortgage preapproval

The first step to applying for a mortgage is to contact a lender. After you have done your budgeting, you will need to be preapproved for a mortgage. You could lose your chance of buying the house of your dreams if you wait to apply for a mortgage until you have found it. You can get a mortgage preapproval to determine how much house you can afford, what your interest rate is and which loan programs you are eligible for. Lenders will only give you the amount you can afford to make monthly payments towards your mortgage. This will help you to set your price range and speed up the mortgage application process. You can then make an offer quickly. Before you start this process, take the time to gather all of your financial documents (such as tax returns) and track mortgage rates. This will allow you to spot a good deal and get the best loan possible.

Select a mortgage lender

Find the best way to get a mortgage and secure the right option for you. Consider your current credit score, time frame, and type of home.

Find the Right House for You

Check the internet to find the right home for you. Many real estate websites will connect you with the brokers who can arrange times for you to see the homes that interest you. You will need to trust your real estate agent to guide and teach you as a first-time buyer. They will be familiar with the area and can help you negotiate a fair price for your house.

3. Go

This is the right time to move forward. After you have found the house that suits your needs, it is time to meet with your broker and make an offer.

Make an Offer

Once you have found the perfect property, make an offer to purchase it. Your real estate agent in Myrtle Beach can help you decide what price to offer. To help you make an acceptable offer, they will compile sales data and compare other local property values. The agent will also prepare an offer letter that you can submit to the seller or seller’s representative.

Closing On Your First Home

A closing date will be set once this has been completed. The closing is usually scheduled within one month of your offer being accepted. However, it may take longer to schedule the closing (which your agent can help you with). To ensure that all fees and upfront expenses are covered, it’s a good idea to consult your mortgage broker as well as your realtor before closing.

Call Full Potential Real Estate, LLC now and let us help you find your dream home.

Full Potential Real Estate, LLC
Myrtle Beach, SC 29577

buying agent


The term buying agent, or residential or commercial property finder, is not one that every person is familiar with. When individuals wish to acquire a house they instantly see their local real estate representative. But what is the distinction between these two?

Buying Agent

A buying agent is simply that – they work with part of the customer to locate the best building at the best cost. Unlike a real estate agent, a residential or commercial property finder will only focus on their customer’s demands – not the requirements of the seller..

Real estate agents in Myrtle Beach deal on a commission basis and are often attempting to obtain the greatest possible market price for the seller of the residential or commercial property.

A property finder does the contrary – they intend to obtain the most affordable cost possible for the purchaser. Their work is also to acquire homes that property representatives might not have access to.


The cost of working with a buying agent differs depending upon a selection of variables, consisting of the place you are looking in, their experience as well as the worth of the building you are wanting to get.

Typically, property finders will take a retainer even before they start working. This retainer covers their rates while they look for your residence. They might or might not that take a commission from the last home sale at the end – everyone will certainly work in different ways.


An actual real estate agent can be beneficial to anybody searching for a residence or business structure or commercial property, they do not have the time (neither is it in their work summary) to do the searching for you. Their key duty is to market residences.

Buying representatives are thinking about acquiring residences – they do not get involved with marketing. They can nearly be thought about to be ‘home investigators’, as their customers can provide really detailed demands (such as a run-down residential or commercial property with a pool in Myrtle Beach) –  it is their work to satisfy those demands.

For individuals who do not have the time, a buying agent in Myrtle Beach can take the stress off finding a home. You provide the specs and also they find it for you.

Ask help from our reliable buying agent at Full Potential Real Estate, LLC.

Full Potential Real Estate, LLC
Myrtle Beach, SC 29577

real estate agent


To ensure a successful real estate transaction, you will need to be able to collaborate with the real estate agent. A strong and trustworthy working relationship with the real estate agent will help ensure a successful real estate venture.

Tips When Working With A Real Estate Agent

Always show respect

Even though they are technically working for you, it helps if you treat your Myrtle Beach real estate agent as your partner. Keep in mind that you may not be the only homebuyer the agent is working with. Thus, you should always show respect and common courtesy whenever dealing and meeting with the agent.

If there are any changes with your schedule, always inform the agent ahead of time, especially if you are going to be late or have to cancel one of your meetings. Always inform the agent so they can adjust their schedule for you or you can reschedule at a more convenient time for the both of you.

Implement proper open house protocol

Real estate agentreal estate agentWhen working with a real estate agent, there is a specific protocol that you should follow when attending open houses. Bear in mind that there are open houses where your real estate agent should go with you. There are other open houses that you can go to even without your real estate agent.

When going to an open house without your real estate agent, make sure the agent hosting the open house knows that you are already working with an agent. You can easily do this by handing over your agent’s business card.

It is always best to have your agent ask questions about the seller of the house. You can inquire about anything about the house such as its condition and history. But you should leave all other questions, particularly ones pertaining to the cost of the house as well as the seller’s motivation, to your real estate agent.

Clearly communicate with the a real estate agent in Myrtle Beach what you expect from your partnership

It is important for you to let your agent know what you expect from your collaboration.

  • Do you want the agent to pick you up and go with you every time you are visiting a house or going to an open house?
  • Do you want the agent to call you every day with updates regarding the house you are looking to buy or with information on potential houses that you can buy?
  • Or do you prefer communicating via emails or instant messaging?

You should let your agent know about your expectations so they will be able to understand you better and be better able to work with you effectively. At the same time, it will also help if you ask the agent what they expect from you. This way, you will both be able to understand each other and communicate better creating a more harmonious and, eventually, successful working relationship.

Set realistic goals and timeframe

Whatever project you are working on, it always helps to set realistic goals and timeframe at the beginning of the project. Have the realtor work with you in creating these goals and timeframes. Keep in mind that they will be working with you and that they will be putting in as much effort as you in this collaboration.

Always communicate clearly

If there are things that are not clear to you or things that you want to change in your purchase proposal or agreement with the seller, let your Myrtle Beach real estate agent know right away. Similarly, with any type of relationship, clear communication is necessary to ensure success. Plus, you will both learn to trust and work more efficiently with each other if you have open communication.

Working with a Myrtle Beach real estate agent is an important aspect of a successful home purchase. Always work with a licensed and trained real estate agent in Myrtle Beach.

Give Full Potential Real Estate, LLC a call now to inquire about their services.

Full Potential Real Estate, LLC
Myrtle Beach, SC 29577

Real estate agent

Real Estate Agents: Tips To Find Your Dream Home

First-time homeowners have lots of questions, one can understand being worried about spending a lifetime paying for and maintaining a house. There are several factors why someone would want to buy a house. It may be for the family or preparing to have a family of your own. Whatever the reason for getting that dream home, first-time home buyers will always have many questions. In this article, real estate agents share tips on how to get that dream home.

Home Buying Tips From  Real Estate Agents

1. Inspect Your Credit Score as well as your Financial Situation

Your credit rating will certainly be a significant factor in getting approved for a home loan. Your credit history will offer information to future loan providers regarding your credit reliability. This informs them exactly how good you are at paying your debts and other bills.

As soon as you have examined your credit rating and are pleased with the requirements of financing firms, the next point comes to examine your economic situation. Figure out what are your existing possessions vs. your present financial debt. Are you ready to keep a big part of your salary for home loan payments without compromising other payables and desires? It is suggested to maintain 4-6 months of home payments, taxes and insurance prior to looking for a dream home.

2. Find a  Reliable Real-Estate Agent

What exactly does a real estate agent in Myrtle Beach do? A real estate agent has all the access to homes for sale and has the ability to recognize a good house offered in a great location. To get the best real estate agent, be sure to get a list and pick at least three from that list. Then schedule an interview to address all your concerns. Be honest and let them know about your financial plans and what type of house you really need. Choose the agent with whom you are the most comfortable.

3. Find out where to obtain a home mortgage or where to make an application for funding.

You can obtain financing from home mortgage brokers, home mortgage financial institutions or business financial institutions. The crucial points to see are paper records, the conditions, the price lock duration, any type of factors being related to your finance and what sort of charges are included in your financings. No matter which alternative you choose for the loan, ultimately you need to pick what lending terms fit you. It is important that you know your paying capabilities and financial situation before applying for a loan.

4. Find the house you want.

Well, we have looked after the first requirement regarding purchasing a home and found a real estate agent and lending institution. The next step is to find the house you want.

5. Purchasing an all-new residence.

Are you going to look for a new house? Some people do not like to inherit other people’s preferences and tastes in home design. The best thing to do is to check for new homes in your preferred location and look for the floor plans you like. When you have decided, try to find a realtor who will represent you in purchasing a new residential or commercial property. Do not utilize contractors brokers, they are paid to benefit the building contractor. Their commitment will be in the direction of the contractor after that you.

Several of the important things you wish to inspect throughout acquiring a brand-new house.

  • Do not make use of Builders broker as your real estate representative.
  • Do not utilize contractors loan provider for getting a loan.
  • Inspect upgrade rates prior to you authorizing the papers.
  • Examine guarantee duration and also what all is covered under service warranty.
  • check building contractors’ previous efficiency.
  • Obtain home inspection done, even if the house is new.

Click here for what not to do when looking for a real estate agent.

Call Full Potential Real Estate if you want to work only with the best, trustworthy, and experienced real estate agent in Myrtle Beach.

Full Potential Real Estate, LLC
Myrtle Beach, SC 29577

home buyers

How Rising Fed Interest Rates Impact Home Buyers and Homeowners

After the Federal Reserve raises its rate, interest rates on mortgages and home equity loans could rise. How will this affect home buyers and homeowners?

What The Federal Reserve Did, And Why

The Federal Reserve raised its bedrock interest rate. Mortgage interest rates are likely to rise, as well as home equity line of credit rates.

The Fed increased its target rate for federal funds by 0.25% or one quarter of a percentage point. The federal funds rate is not the only interest rate. Large banks often charge a prime rate on corporate loans. It will also rise by 0.25%.

As an inflation-fighting measure, the Fed is increasing its interest rates. The Fed will likely raise the federal funds rates multiple times this year, as inflation is significantly higher than the central bank’s target.

How the Fed Rate Hike Affects Home buyers

Because mortgage rates tend to move in the same way as the federal funds rate, they are likely to increase. Mortgage rates could trend up throughout the year due to anticipated increases.

You’re good if you have signed a contract to purchase a home and locked in an interest rate. Your rate cannot be increased by the lender.

However, if you are shopping for a home right now or have plans to do so in the future, your mortgage interest rate might be higher once you receive a purchase offer. A contract is required to purchase a home. You cannot lock the interest rate.

You may find yourself shopping at a lower price if mortgage rates increase significantly well before you purchase your dream home. Higher interest fees can reduce your purchasing power.

You shouldn’t rush to purchase a home just because the mortgage rates are increasing. You should seek the help of a professional real estate agent to help you out. The rates shouldn’t be the sole driving factor in deciding whether someone should purchase a home. Rates are a factor, but financial and personal factors are more important.

How Does The Fed Rate Rise Affect Mortgage Refinancers

As interest rates rise, fewer homeowners will be able to refinance to a lower rate to reduce their monthly payments.

Not everyone refinances to cut back the payments they make per month. Many go for cash-out refinances. They refinance much more than what they owe and then take the difference in cash. This cash can be used to pay for renovations, debt consolidation or tuition.

Interest rates that are higher can reduce the amount of cash-out refinancers could afford since higher interest rates lead to higher monthly payments.

The home equity line is another option to cash out refinances. However, HELOC rates are expected to increase. Fixed-rate home equity loans will likely experience the same fate.

How the Fed Rate Hike Affects Home Sellers

If you’re a home seller, you may be taking offers seriously if they come from home buyers with a preapproved mortgage. But in order to be more comfortable and confident in the ability of a buyer to afford the house you’re selling, you need to make sure that the preapproval is based on the existing interest rates.

Why? If you accept an offer from someone who is not qualified for a mortgage loan, you will lose valuable time.

You may sell your home to someone who belongs to a higher income bracket than the one you marketed your house to initially.

Call Full Potential Real Estate, LLC if you’re looking to buy your dream home in Myrtle Beach.

Full Potential Real Estate, LLC
Myrtle Beach, SC 29577