Monday, October 8, 2012
Buying a Home? Finally, Times Are Good! YET, Buyers are hesitant ! Everyone knows that the housing market has been a little daunting for the last several years. Ups and downs, talk of good news and bad news, and a confusing amount of information about rising and falling mortgage rates has rendered the market all but inaccessible for a lot of prospective buyers. Good news! Times are changing. Whether you want to buy a home as your long-term residence or as an income property, things are looking up. Remarkably low mortgage rates are making houses more affordable than they have been in decades. Of course, lately, one of the greatest concerns facing you as a prospective homebuyer is whether you can secure that low rate mortgage in the first place. A recent monthly survey of buyers by NAR (National Association of Realtors)
shows that lenders are taking too long in approving applications, and that the information lenders require from borrowers is excessive. Some respondents expressed frustration that lenders appear to be focusing only on loans to individuals with the highest credit scores. Lenders have tightened standards, requiring steeper down payments and stricter scrutiny of credit scores. But some economists think that might be changing as well. Do you have good credit? , A down payment? , A steady job? These are all factors that might play in favor of your ability to secure an attractive mortgage rate.
While this hesitation is understandable – This is STILL a BUYERS market (where because of lower home prices due to high levels of homes for sale, etc.).
Foreclosures and Short-sales are shrinking in availability. Seizing on great buying opportunities should be your focus; contacting a reputable Realtor should be your next action.