Discover why buying now benefits you as a buyer

With the current economic crisis and the failure of Washington Mutual, Wachovia, IndyMac and other banks, many people have decided to wait it out rather than to purchase a home now. The media is full of gloom and doom about the housing crisis and much of what they say is statistically accurate. Housing prices are down. Sales are down. The number of foreclosures has skyrocketed.

Additionally, obtaining loans has become more difficult. The death of the subprime mortgage business has certainly resulted in lenders tightening loan requirements. Moreover, many loan products, such as no document and stated income loans, are no longer being offered by a number of lenders. Those that are still offering these types of loan products have implemented very stringent approval requirements. However, this doesn't mean that a buyer cannot obtain a loan. It simply means that a buyer must have good credit, a solid employment history, and the clear ability to repay a loan.

What the media is not telling us is why these very market conditions make now a very good time to buy a home. It precisely because home prices are down and interest rates are low that makes now the best time to buy. Even though there is no guarantee that housing prices will go up within the next few years, if past trends are any indication of what the future will hold for the real estate market, chances are we will be experiencing an upturn in the next three to five years. So, by purchasing a home now, you will be taking a calculated risk that your property's value will have increased by the time you are ready to sell three or more years down the road.

Because of the tremendous increase in the number of foreclosures, buying a home has become much more affordable. Banks are not in the business of owning real estate. For this reason, many banks are willing to accept as much as 15-20% below the list price for properties upon which they have foreclosed and are currently trying to sell. This is significant because a buyer of a foreclosed property will be able to get into the house for less and will have built-in equity. Once the market turns around, the buyer will have even more equity than his counterparts who purchased from an individual seller.

Despite the fact that we are currently in a buyer's market, sellers, including banks, are unwilling to simply give their properties away. For this reason, it's important to have an experienced and knowledgeable realtor advising you and guiding you through the process. Your realtor will help you decide how much to offer and what other terms to include in your offer. Keep in mind that most sellers will reject low ball offers outright. So, be prepared to make a realistic offer and to negotiate in good faith.

For more information go to our buyer website

1st time Buyers...NOW is the time to buy a home

LOW AND NO DOWNPAYMENT FINANCING OPTIONS for Owner Occupant Buyers

Finding the home of your dreams is very exciting. When you walk into a home and realize it's the house for you, you don't want to risk losing it because you don't having financing lined up.

Inexperienced buyers often don't know the difference between being pre-qualified and pre-approved. A pre-qualification means that a loan officer has gotten some preliminary information from the buyer and arrived at an estimate of how much the buyer can afford to borrow. A pre-qualification is worth little more than the paper upon which it is written.

A pre-approval, on the other hand, is worth a great deal for any seriously motivated buyer. The loan officer has pulled the buyer's credit report, assessed their debt to income ratio, and determined how much the buyer can afford to pay for a home and how much the mortgage company is willing to lend. Offers with pre-approval letters attached are taken much more seriously than those accompanied by pre-qualification letters.

For some buyers, coming up with a down payment presents a problem. But there are several options for buyers who have little or no money for a down payment.

RD LOANS
RD loans are for people who live in rural areas. To qualify for an RD loan, a buyer must meet certain income requirements and must live in designated areas where these loans are offered. The benefits of RD loans include:

✔ Fixed, below market interest rates
✔ No down payment required
✔ Government insured

VA LOANS
Buyers who qualify can also obtain VA loans that require no down payment. These types of loans are available to qualifying veterans and active duty military servicemen and servicewomen. VA loans feature:

✔ Fixed, below market interest rates
✔ Low fixed payments
✔ No down payments

VA VENDEE LOANS
A buyer does not always have to be a veteran to obtain a down payment free VA loan. Under certain circumstances, non-veterans can get a VA Vendee loan on VA foreclosed homes. So this is a great financing option for investors and buyers looking for their next home. The benefits of VA Vendee loans include:

✔ Low closing costs
✔ No down payments

FHA PLUS LOANS
FHA plus loans require no down payment. However, they do require financing of the down payment in the form of another loan granted along with the mortgage loan. FHA plus loans are ideal for buyers who are experiencing some financial hardship but have demonstrated the ability to make a mortgage payment. The benefits of FHA plus loans are:

✔ Assisted down payments
✔ Easy qualification requirements
✔ Closing costs are financed

Each of these programs are reserved for first time home buyers. They are designed to give buyers who might otherwise be unable to qualify for other traditional loan programs an opportunity to buy a home. The government realizes the importance of homeownership to a vital economy and has made it much easier for people to achieve the dream of homeownership by implementing these down payment assistance programs.

For more information go to our buyer website.