Think You Can’t Afford to Buy a Home? There is Hope.

November 4, 2009

A few months ago I wrote about advantages for first-time homebuyers. Now there is even more good news, with lowered mortgage rates and home prices still on the low side.

Daily reports of doom and gloom surrounding this housing market seem endless with numerous foreclosures and increased government regulations, making a home purchase seem even more difficult and your dream of home ownership just that, a dream. However, there are ways to improve your chances of purchasing a home utilizing the criteria of lenders to your benefit.

While it is true that financial institutions are imposing stricter lending standards, there are alternatives for first time homebuyers including programs with flexible guidelines requiring little down payment, balanced with job stability and good credit. In addition, there are public servant programs for teachers, police officers and other public employees, which are government-backed programs that are available with as low as 3.5% for a down-payment.

There is more good news. As interest rates are still relatively low, this is a great time for people to get into their first home. Inventories are high and with the continued influx of foreclosures, homeowners are eager to sell, creating a “buyer’s market”, and will often absorb closing costs when negotiating. Wise buyers have a real opportunity of obtaining their dream home at the right price.

 There are still several things to consider before purchasing a new home. First, be familiar with your credit score and credit history prior to pre-qualifying because the better your credit score, the better chance you have of obtaining a loan and at a more desirable rate. Also, start saving for a down-payment and pay off your debt. A 20% down-payment may be difficult to accumulate, but a 3.5% down-payment is within reach. Lastly, you should get pre-qualified so you know how much house you can afford, and you will be taken more seriously by the sellers.

Home ownership is within reach! For those of you looking to purchase, keep searching for your dream home while the housing market is down. These economic times will sooner or later be turning around as history has proven, and you wouldn’t want this opportunity to pass you by! Find out more about MCCU’s mortgages or call our Loan Department today for more information or to get pre-qualified or apply – 818.993.6328.

Questions or comments? E-mail me at blogger@matadorsmoneymatters.com.

Posted in Loans