Preparing your self for a home buyers fair
The first thing to do is to make a true assessment of your present condition your assets and liability. Ask yourself, would it be better for me to buy or rent. Is buying a home now the best thing for me considering my financial condition?
Next you should know that all parties there are there to help themselves. It is true every body wants to get you in a house but you must be mindful their motive is self-interest. The organizer or investors have a surplus of houses; The Realtors are looking to earn a commission. The mortgage man wants to sell a mortgage. The credit repair specialist are there for clients; and you are there because in most cases you do not have the discipline to save money for a down payment on a house, or you somehow let your expenses get much greater than your income. Therefore you can’t pay your monthly bills; but you still want a nice home for your family or you may be there to take advantage of a first time homeowner grant; however this is the perfect environment where predatory lending takes place.
Do some home work. Unless you were living under a rock for the past 5 years you know that unemployment is in double digit, and there is a flood of new homes on the market most of them are over value. This over value along with some mortgage plans put a buyer under water, the minute he walks out of the settlement office. This was ok a few years ago when homes were expected to increase in value yearly; but today homes are more likely to decrease in value. So if you are not getting 15 to 20 % of the asking price just say no. There is a shortage of buyers looking to buy and an even greater shortage of qualified buyers. Don’t forget as a buyer you are in demand and your first time homebuyer grant is yours. So use it wisely.
If you buy a home with some kind of deferred interest or no real estate taxes for some time in the future, you are making the assumption that in the next few years you will get a big raise or you are going to get another job that pays a lot more than the one you have now. Your kids will be moving on to high school or college, which will reduce your expenses. Your gas and electric bills will be cheaper and the price of gasoline will go down. Don’t kid your self-Think, how am I going to handle the increase in mortgage payment. Don’t plan your foreclosure
Look for more on home ownership to come