Moratoriums on foreclosures have been lifted. Interest rates are rising. What does that mean for buyers, especially first-time home buyers? Available, affordable homes are scarce. If the first-time home buyer, or moderate income home buyer can find a suitable home, it may be very challenging to purchase. they find it more difficult to qualify or compete with investors who are creating bidding wars. Investors are offering more than the asking prices. I have seen $10,000. To $20,000 above asking price being offered. Investors are purchasing sight unseen, without appraisals, nor inspections. They are asking for thirty day, quick closing. For some reason, this is very prevalent in minority communities. Strange fruit. What can we do?
Educate ourselves. Competing in this market can be daunting, but feasible.
The average cost of a home maybe $350,000 in some neighborhoods. Lending institutions have different qualifying requirements. Credit scores are crucial. If credit needs to be repaired, do so before applying. Two years tax returns, employment records are required. Student loans have become an impediment for many buyers. Try to negotiate some payment arrangement. (pray student loan forgiveness passes congress). Study neighborhoods. Interview real estate agents. Choose a knowledgeable agent to serve your needs.
Now you are ready to purchase. The rule of thumb is one must be ready, willing and able to purchase. That means you know what you want, where you want to live and you are financially able to purchase.
FHA down payment 3%
VA down payment $0
Conventional varies 5-20% depending on credit rating
Check out hud.gov, South Florida land trust, housing foundation of America, and other local, state and federal housing assistance programs.
The home purchase is one of the largest investments one may make. If purchased with location in mind, it will appreciate in value. It also provides shelter and has tax advantages. Find an experienced agent or housing counseling agency to assist.
Try it, you may like it. It certainly is worth it.
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