Understanding Mortgage Contingencies: A Guide for Buyers in Glastonbury's Real Estate Market

Breaking down the real estate headlines and MLS stats so you, the local homeowner, can stay informed on what matters to our hyper-local Glastonbury market.  
Sales of single-family homes in Glastonbury
There are only 33 available homes on the market in Glastonbury.
Per MLS in Glastonbury: there is 1 home listed under 300k and finally, we are seeing some good activity in the 300-400k range with 5 houses listed! 1 home is listed in the 400-500k range and 2 homes are listed in the 500-600k range.  3 homes are listed in the 600-699k range and 1 home is listed in the 700-800.  1 home is listed in the 800's and 7 are in the 900's.  7 homes are listed over 1million...
Of these 33 homes, 13 are new construction. That leaves 20  pre-loved homes available for the multitude of buyers.
Sales of condos
Currently, there are just 2 condos on the market in Glastonbury.   If you think you want to sell your condo and you are waiting  - you should reach out as soon as possible.  We are working with very qualified BUYERS ready to buy.
The question of the week!!  I have been asked about this concept so many times recently, I felt it warranted a thorough conversation.
Understanding waiving a mortgage contingency:
If you are considering buying a property but worried about losing out in a bidding war, one strategy is to waive your mortgage contingency, but before you do, it's important to understand the implications and make informed decisions. The financing contingency is a provision that protects buyers from losing their down payment deposit if the lender fails to provide the necessary financing. Mortgage contingencies are standard in our GHAR contracts here in Hartford County area and acts as a safety net for your earnest money deposit. Here's how it typically works when you do not waive the mortgage contingency: your offer is dependent on your lender's written commitment to provide you with a mortgage by a specific date. If your mortgage application is not approved for the financing amount you need, the seller agrees to refund your deposit in full. Essentially, if you made a $15,000 down payment and the bank denies your loan, you can walk away with your $15,000 intact. However, when you waive your financing contingency, you're taking all the risk. If your lender backs out, you will forfeit your deposit to the seller. This is why it is imperative to have your finances fully vetted by your loan officers & underwriters so you only have appraisal contingency and title left to accomplish. Most people who are typically W2 employees and have just 1 source of income can have reasonably strong confidence by their loan officers they will get approved. To minimize the risks associated with waiving the financing contingency, you must have a detailed conversation with your loan officer. Gain a clear understanding of your financial situation, including your credit score. This will help you make an informed decision about whether waiving the contingency is right for you.
In summary, waiving the financing contingency can be an effective strategy to stand out in a competitive market. However, it's important to consider the risks involved and take steps to minimize them. By having a thorough understanding of your financial situation, exercise your mortgage officer's advice, you can navigate the process with greater confidence as a highly competitive buyer.  
>>>>>>Do you have a specific question about the market? Feel free to email me at [email protected] or send me a text at 860-818-3610.<<<<<<

Post a Comment