About ten years ago those who did not own a home made home ownership a priority. Banks were lending to everyone, some with credit scores as low as 550. However, with the recent economic decline, it has discouraged many potential buyers due to the frustration with the current way banks due business. Now is not the time to defer your dream of home ownership. Today is the best time to buy a home due to the extremely affordable prices and low mortgage rates. There are definitely reasons to delay home purchase such as divorce, new to the area, or uncertainty in your job. If you are one of the many with less than perfect credit, or not enough cash, these obstacles can be overcome. The pre-qualification process is extremely important. Please do not let this process intimidate you, and prevent you from succeeding. This process will determine how much house you can afford, and sellers only want to entertain offers from pre-qualified buyers. It will also reveal credit issues that may need to be addressed that you can begin working on. If you are declined for a home loan, the mortgage professional will provide you with a list of items, and instructions to improve your credit score so that you can receive the loan. There are also local agencies who will assist you with home buying education, credit repair, and down payment assistance. However, you must stay on track with the plan, be patient, and not get frustrated. The most obvious reason to buy a home is the tax deduction. What about renting versus buying? Renting does not produce an investment for the tenant, it only maintains the landlord's investment. What about rent increases? You can definitely expect a rent increase annually or more frequently based on the terms of your lease. However, if you get a fixed rate mortgage, you will have the same monthly payment for 15 or 30 years. Imagine how much money you could save. Imagine the freedom of buying your home such as home improvements and increase in space. As the real estate market recovers, your home will appreciate in value around 5% although this number will vary depending on factors. Here are some helpful links:
www.hud.gov/buying
http://www.fanniemae.com/
http://www.homepath.com/
If you have not yet applied for a home mortgage, or have been turned down, it's not too late. Your dream of home ownership can still be realized.
