The only thing that stands between you and owning a home is whether or not you have the cash flow every month to make your payments on all of your financial obligations. Set aside your worries about credit scores and focus on whether or not you can pay your bills. If you can, and you have a good job, and you can prove solid income with a low debt to income ratio, then you can buy a house. Quit listening to what the media is telling you and start consulting with those who know ( 🙂 ) what’s really going on.
Does buying a house mean taking on more responsibilities? It can, but the key in these economic times is to just buy something. Buy a condo, buy a townhome, just buy something.
Dave Ramsey recently read a letter from a listener in which he stated…
Why is it that when stores put items on sale everyone runs to get the best deals, but when stocks are on sale, everyone runs for the exits?
To that Dave responds with enlightening information (as though we don’t already know this) about how stocks and real estate are on sale. They’re on sale everyone! SALE! The market reflects pricing from 2004 and the slight downward over correction we’re seeing on that pricing is normal. Over time, these prices will increase.
Pricing this low means one thing. Homes are at a bargain discount right now and you need to take advantage of that.
According to a recent article released by the National Association of Realtors, Lawrence Yun, chief economist for the NAR said the following:
“What we’re seeing is the momentum of people taking advantage of low home prices, with pending home sales up strongly in California, Nevada, Arizona, Florida, Rhode Island and the Washington, D.C., region,” he said. 2 “The improvement also reflects the drop in mortgage interest rates after the government takeover of Freddie Mac and Fannie Mae. It’s unclear how much contract activity may be impacted by the credit disruptions on Wall Street, but we’re hopeful most of the increase will translate into closed existing-home sales.”
Rather than shopping for a bargain while prices are low, people are retreating from any major purchase, cowering in a corner and proclaiming ridiculous statements like
“Well I hope the President has a plan to fix this…”
Guess what…fat chance. The only person who has control over your financial future is you, and if you’re smart about managing your money, you’ll start shopping for a home now, because one year from now it will cost you more to get in.
Yun also states that
Following national declines of 5 to 8 percent in 2008, home prices are projected to increase 2 to 3 percent next year.
The 30-year fixed-rate mortgage will probably average 6.1 percent in the fourth quarter and rise gradually to 6.6 percent by the end of 2009.
Now is the time to buy that single family detached home you’ve been afraid of purchasing. There are thousands available on the market, and many of them are in the extremely affordable $125,000 – $200,000 range. A mortgage of this size will cost you around $750 – $1200 /month. I would bet you’re paying that in rent and when you rent, you’re losing it all.
It’s more clean than ever. It’s time to get in while the getting can be gotten.
Call me about buying a home today. (602) 312-3262