Is now the time to buy?

Buy or Wait?

We are of the opinion that now is the time to buy!  With interest rates at levels almost unimaginable in recent history, the supply of homes on the market at near record levels, this is actually the time to buy.  Trying to time the real estate market is just like any other market, by the time you find out that it has hit the bottom it is too late.  What you hear on a national level is true to some extent, home prices have fallen, but in the Jackson area, we never saw 50-60% appreciation like California, Arizona, Florida, and other high density populated areas, so we haven’t and will not see depreciation like those states.

 

First time homebuyers this year will be eligible for an $8000 tax credit on the purchase of a principal residence.  This is in affect until December 1st, 2009.  It probably never will get any better then this again, for first time homebuyers.  If you are currently renting you really need to consider buying now versus renting.  If you are planning on staying in the area for any period of time over 3 years, you don’t want to miss out.  As some say your ship has just come in.  If you itemize deductions, the interest deduction, the tax credit, and the probability that the market will improve dramatically over the next 3 years is the perfect storm in your favor.  Read more about the tax credit under our buyer section, there are details of the 2009 plan, and frequently asked questions.

 

Real estate sales typically are the slowest from November to February, and in 2008 and now this has been no different then any other year, with the exception of the economy making it more obvious.  Home loans are still available, but you are not going to get into a home for nothing.  Never should have been able to, but now you are seeing what happens because of the poor loan decision criteria.  The old ways of lending on home purchases were based on real income not stated income, not your FICO scores, but your actual ratios of income to debt.  Typically it was 28% for housing, and 36% for all debts including housing.  FHA and VA Loans raised the numbers up to 29% and 41% respectively.To get a quick idea of what price range home you are probably qualified for, simply do this.  Take your annual income and multiply it by 4.  Doing this is not exact by any means because other factors apply, including how long you have worked in your profession, how much other debt you have, what your credit history has been, and so many underwriting guidelines. You need to sit down with a mortgage lender to get an actual prequalification letter, a good faith estimate, and advice on what loan program will meet your needs.   Be sure to get a good faith estimate, and if you talk to several mortgage individuals, make sure you are comparing apples to apples. 

 

There is a difference between a mortgage broker and a mortgage lender, become informed on the differences.  Ask questions! If you feel intimidated by the mortgage individual, find another one.At Coldwell Banker Real Estate Now we want you to buy a home you can afford, not strap you with such a burden that you can’t go out to eat, see a movie, or enjoy a vacation with your family.  Our agents will sit down with you and explain the purchase process, help you get qualified, represent you in the transaction, and advise you with all your real estate needs.  Give any of them a call, to schedule an appointment.  Spring is just around the corner, and market prices tend to move up during that period, so start now.

Don’t hesitate to call us at 731-668-1777 or if you are out of town 1-800-678-6481, we are here to help.