Buying a Home in Today’s Market
The means necessary in buying a home today.
In today’s market, home buying is easier than what most people think. Too many times do we allow ourselves to get drawn in by the negative media on the “crash” of the Housing industry. In reality, if we stop and think about it, the crash is being caused by us, the consumer.
Let’s take a look for a minute at the issues at hand.
Houses are being lost in foreclosure at an alarming rate.
This is untrue. There are pockets or areas if you will that are going at a higher rate, but overall we are about 2.5%.
Interest rates are high.
Actually, compared to what? In 2006 when they reached the 4.875% mark? This again is something that is driven to be more like a “teaser” to get you in the door. Rates are still at an acceptable level.
I can not afford a down payment.
OK, not a lot of people can. you can still get a home with the majority of the down payment coming from another party other than yourself. What has been taken away is for the downpayment to be “funded” through the loan. FHA still allows for the money to be gifted to you.
My Credit is bad.
My concern with this is, when is the last time that you did something about it? Talking about it does not resolve it. You have to get involved with it and get a resolution. Sometimes seeking outside help is the best method.
Once you can get yourself past these stumbling blocks, the first thing that you want to do is get pre-approved for a home loan. This will tell you how much you can afford. When you find that out, find a Realtor that you can trust. Most loan officers can help with that information.
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7 Comments
Great info and thanks for the informative post. A lot of good info to digest and this will definetely help me with my research with buying home. I have bookmarked this page!
TVDinner, the people that are taking advantage and buying now are going to be the smartest. The ones that are holding out for a better deal is going to get disappointed.
This is all very useful and honest information. I think that if you get qualified for a loan, then you have met the tougher guidelines that are a reality in today’s market. This should give you as a homebuyer more confidence in the responsibility of your homeownership. This is a very empowering article.
Rich, well said. People need to realize that buying a home is not a “right”, it is an earned privilege. Until people realize that portion and understand the journey they are going to embark on, then they will always complain about what it takes to get approved.
What they do not realize in the approval is the finance company does not want the buyer to get to a point where they can no longer make the payment on the home.
Great article, everyone needs to know the facts and this is very helpful and useful information. Everyone has the right to buy a home, but it is a earned privilege to do so and your right they do need to realize this. It would make it easier on them and the individuals involved in helping them to achieve this privilege.
Marey, thanks for the comment.
Great article. Very informative.