Here are seven bits of wisdom from economists and financial planners for anyone contemplating a home purchase today:
Old-fashioned basics are more important than ever. The safest way to purchase a home is to put down 20 percent on a fixed-rate, 30-year (or less) mortgage.
Don’t become overconfident about income growth. Even though buyers in their 20s and 30s will likely see their incomes grow more quickly than previous generations, it is important to act sensibly when borrowing.
Anyone contemplating adding children to the family should calculate whether they could live on one income because having both halves of a couple work may turn out to be impractical.
Include a maintenance budget. Even new homes need upkeep and repairs.
Buyers who can’t afford their dream home now should opt for a starter home where they can save money each month for what they really want.
Consider a property that can be expanded and improved down the road when money is available.
No two buyers are the same, but they should all feel confident with the loan they enter into, no matter the size of the mortgage.
I received great news this weekend; Fidelity Mortgage is offering Job Loss Protection! This is a wonderful option to ease the fears of many first time home buyers afraid to take the plunge due to the uncertainty of the economy. Here are some details of the program:
JOB LOSS PROTECTION
We are now offering a program that pays a buyer’s house payments in case of a job loss. If a borrower loses his/her job within the first two years of ownership his/her payments will be paid for up to six months.
Great starter home for one ready to roll up his/her sleeves! Huge lot, new heating system easy access to public transportation- SIDE WALKS 🙂 . Make your best & highest- you could be in your new home by Valentines Day!
634 Holderness- 3bed/2baths completely renovated, move-in ready….with great character! Large front porch,new back deck- cute Jack/Jill bathroom with TWO pocket doors :)-a MUST see! 139.9K List price *Serious buyers only! This one will move fast, MUST have pre-approval
Sales are picking up in markets where prices are deflated, but the business is different than it was before the bubble burst, observers say.
The housing market in deflated markets–like Arizona, California, Florida, and Nebraska–are beginning to show signs of a rebound. Analysts say that prices have fallen to the point that those with average salaries can afford to buy once again.
“The buyers are returning,” says Lawrence Yun, National Association of Realtors chief economist. “And in such a strong way that, now, we are hearing in some cases there is multiple bidding, which hints that maybe pricing is reaching a bottom point. But inventory remains high.”
In California’s San Joaquin County, sales in September and October reached sales levels about equal to business at the height of the boom in 2005, says DataQuick, which provides property data.
But new buyers are primarily first-timers and investors looking to cash in. Local practitioners say the buyers are primarily local residents who have cash to spend.
“It’s the couple down the street that has a nice nest egg and who wants to put it into something that will give them a good return,” says Bev Marlow, head of the Central Valley Association of REALTORS®.
Source: The Christian Science Monitor, Ben Arnoldy