The media is drilling you with the same information day after day. “Banks are failing. Unemployment Rates are climbing. It’s impossible to get a loan.”
The truth is, it’s not impossible to get a loan. Why would they say this? Because they continue to look in the rear view mirror at all of the high risk, no documentation, interest only loans they wrote over the past few years. Guess what…those people are not the right people to be buying a home.
So who is it that can actually buy a house right now.
Well, obviously cash buyers can buy a house, but they are few and far between. The next group of people are the only other group that really have a chance of buying a house right now. That’s you and me. The hard-working american who pays his bills on time, consistently, has a low debt to income ratio (and remember that lenders calculate debt to income ratios by including the potential loan that you’d be getting from them,) and has a good credit score.
If you fall into this category, and you’re renting, STOP THE MADNESS. Buy a house. Don’t worry so much about the fact that it may not be the perfect home. Find something suitable that you might be able to turn into a rental down the road, and buy it, and live in it, and make it a home.
If, however, you’re low on income, have nothing to put down, have a low credit score, and don’t may your payments on time, then you can forget about home ownership. Some people will always be renters. If this is you, I would recommend learning as much about managing personal finances as you can from someone who knows before you consider even attempting to buy a house.