CLEVELAND — It’s hot in Cleveland, not the weather right now, but the real estate market.
“We have a great market; our price points are still really good in Northeast Ohio compared to across the United States. We still have investors coming in wanting to invest in our area because our market is just good,” said Stephanie Kiesel, EZ Sales Team, Keller Williams Citywide.
People are still searching for a home sweet home, and with limited supply the demand is high.
“People are still buying and selling on a daily basis. Our team numbers are matching what they were in 2022. So our team particularity has not seen a change in the market,” said Kiesel.
On Monday, a new rule put in place by the Biden Administration went into place that will cost some home buyers more.
“We were prepared for it; we knew it was coming,” she said.
It will have some home buyers with the highest credit ratings paying more in fees while those with lower credit scores will see a cut in fees.
“It made more fees for credit scores above 740, and it did lessen the fees for those with credit scores less than 680,” said Roccco DeStefanis, Caliber Home Loans.
The Biden Administration changed the structure of the Loan Level Price Adjustment Matrix. It’s a risk-based fee assessed to mortgage borrowers using a conventional mortgage. The Biden Administration believes it opens the door to providing equitable access to home ownership.
DeStefanis was at the EZ Sales Team at Keller Willimas in Westlake helping realtors understand the changes.
He said the changes are based on a combination of credit score and money down.
"For those with high credit scores but a down payment of less than 25%...the bottom line is it costs a little more now than it did previously,” DeStefanis said.
He wants to be clear about what it doesn’t do.
“The big rumor is that if your credit score is lower now that you get better pricing than those with higher credit and that is absolutely not the case,” he explained.
If you are in the market for a home, experts suggest calling your lender for answers to specific questions about credit and money down. You can also CLICK HERE for more information.
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