February 2019 President’s Message

President's Message from Donald Rausch, VCCU CEO

Whether you’re looking to buy a new home in 2019—or find the perfect second home—it helps to know what you’re up against. In many markets, the trend of a low volume of homes on the market compared to the number of buyers that has been fueling bidding wars and rapid increases in home prices.

Speed is key in a booming housing market. With low inventory and rising prices, you’ll often see a house, cabin, or condominium listed one day and an offer accepted within a week or less. In this environment, you could miss out on the perfect property, if your finances aren’t in order.

The most common topic of conversation for potential homebuyers going into the new year is about rising interest rates. Mortgage rates are at the highest mark since 2011, and while higher interest rates are a sign of a good economy—especially compared with historically low unemployment rates—the change has many consumers hesitating about jumping into the housing market.

The Federal Reserve hiked interest rates three times in 2018—and has expressed plans to increase them more than once in 2019. While mortgage rates set by lenders are not beholden to the Fed’s set rate, they do often echo change in the long run.

A marginally higher interest rate doesn’t necessarily add a significant amount to the total you pay back to a lender for your mortgage, but in monthly payments you could see anywhere from a change of $50 to a couple hundred-dollar increase.

So here are some quick tips, that I believe are important you should know:

  • Know Your Credit Score-Or come in and let us help you.

  • Get Pre-approved! Having a pre-approval letter from us means you know exactly how much you can borrow and what types of loans are available to you. It also shows a seller you’re serious about buying and helps speed up the closing process. Again, we are here for you, so you understand and know your loan options which home loan product is best for you.

Only you can take that first step when deciding you want a new home, second home or condo; you need to determine what you need in order to be happy there. The list of your must-haves can get long, and you reasonably can’t expect to find a house that perfectly matches all your criteria. Let us see what type of mortgage is right for you. . .. We’re Ready When You’re Ready


Donald Rausch

photo of VCCU office

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