Expert Lending Advice from Shannon Pohl

Today I’m here with Shannon Pohl from Caliber Home Loans to discuss interest rates, homestead exemptions, and pre-approvals. 

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Today I’m here with Shannon Pohl from Caliber Home Loans. Shannon has been a lender in Vero Beach for 15 years, and she has some advice to share with all of you buyers out there today.

First of all, let’s talk about interest rates. Rates are still phenomenal right now and continue to hover in the 4% range. This July, we had the lowest interest rates ever. The T-Bill in July was down to 1.37, and now it’s at 2.3, which might not mean much to the average consumer. Rates back in July were at 3.75%, and now they are in the 4% range.

Even factoring in these historically low interest rates, the 45-year average for interest rates was 8.25%, which means today's rates are still incredible!

That said, experts expect that interest rates will continue to rise. As interest rates go up, purchasing power goes down. For instance, you may be able to afford a $400,000 house right now with a 4% interest rate. If rates go up to 4.5%, you would only be able to afford a $350,000 house.

Interest rates are still phenomenally low.

If you want to qualify for a homestead exemption, you still have time to close before the end of the year. When you get the homestead exemption, the value of your primary residence cannot increase by more than 3% each year. Now you have a great chance to fix in a low interest rate and cap your taxes.

Shannon and Caliber Home Loans can also help you get pre-approved. Shannon cannot stress the importance of using a local lender enough. For instance, when you get pre-approved at Caliber Home Loans, you will be thoroughly vetted by an underwriter. That makes your pre-approved offer as good as cash pending the appraisal, which we can get to you within 48 hours. That gives you a lot of buying power, especially in a market like this with a lot of cash buyers.

If you just get pre-qualified, keep in mind that even the best client can run into disputes with their credit down the road. A pre-approval is the best way to go.

If you have any questions for Shannon, you can call her on her cell at 772-360-6030. You can also call Caliber Home Loans at 772-226-6300 or visit their website. As always, if you have any real estate questions for me, just give me a call or send me an email. We would be happy to help you!