buying a home TODAY

The state of our economy is on the minds of everyone these day and many are wondering what the state of home lending currently is. With 'Big Banking' making the morning news and front page of newspapers daily, I am amazed at how much I see that is misleading and down right untrue. Mortgage Lending has changed a great deal from the “wild west” days of "have a pulse get a loan"; unfortunately that has had a hand in putting our economy where it is today.

Lending has returned to the days of the early 60”s and rates are about the same as then too! Home buyers need to look at their budgets and determine if home ownership is fiscally prudent or if waiting for debts to be paid off, savings to build up, or jobs to stabilize is in their best interest.

When meeting with a home loan professional to pre qualify for a mortgage loan you will be required to prove (on paper) your income and you must have money in the bank you can work with. Having been a mortgage loan professional for the last 18 years I have seen the pendulum swing both ways. I can honestly tell you that if you want to buy a home, be it a first one or to step up to a larger property, now is a great time to do so.

For first time buyers there programs like FHA, VA Or USDA that allow for small, to no down payment on the purchase price. These programs have a maze of qualifying overlays so you will want and need a qualified professional to help you navigate, but opportunity is out there. Besides the $8000.00 government tax credit for first time buyers, many can obtain grants, down payment assistance, and my bank even has a savings plan where we match your money 3/1 up to $5000.00.

Whether you are just thinking about, discussing over dinner or are ready to meet with a mortgage lender, buying a home in today's market requires you to be realistic in how much home you can afford. First time buyers must remember that starter homes are just that, a home to start you down the road to your dream home.

What Lies Ahead For 2010 Home Buyers?

Well it looks like we can count on one thing... no one is can predict what will happen this year. However, it was predicted that 2009 would end better than it began, and that was correct. But then again, there really was no place to go but UP. As I have said to many clients the past year, a low base and our outlook have made it a buyers market.

Looking ahead into 2010 I do see improvement in home sales and pricing. It may even be that for a time, it is a bit of a sellers market; especially as the home buyer credit is set to expire April 30th. Like the $8000.00 tax credit, sub 5% interest rates can not stay around for ever. It will be interesting to see home sale and mortgage volumes come June/mid year, when these stimuli are gone.

The overriding factor holding our economy down is the jobs market. Until we get the prospects for employment turned around, we will see a slow to no housing market increase. This is good for first time buyers who have stable ,but not as good for the rest of us.