Did you read todays paper? The bad news is not hard to findmortgage companies are going bankrupt, American citizens are losing their home to foreclosure, and the list goes on and on. The question is: Is there any good news amongst the reported bad? Savvy consumers (not just investors) with foresight are finding there is. They are reading between the lines, researching the market and finding exciting opportunities.
Big Inventory Means Big Opportunity
There are a number of signs of a high inventoryjust drive through any neighborhood and notice all the For Sale signs, flip to the Real Estate section of the paper, or surf the internet to see the astronomical incentives being offered by home builders. High inventory levels mean aggressive competition to get prospective buyers to purchase. This is the beauty of the buyers market. Sellers are dying to go the extra mile to get a deal done, and slashing prices gets attention.
Your Home is Your Biggest Investment
There are two ways to think of the home ownership. First, it is the place where you spend a significant part of your life, watch your kids grow up, have dinner parties, etc.
The other, the less romantic notion, is that a home is a major investment. In a buyers market the savvy consumers can benefit greatly on both aspects. Sales prices are down; therefore the buyer can afford to live in a home or community that might otherwise have seemed out of reach.
As an investment, the buyer will be taking advantage of rule number one, buy low, sell high. As market values begin to go up, and mortgage continually pays down, the home easily becomes the most valuable asset on can have.
The Truth about Mortgages
One of the medias favorite bad news stories is the bankrupting of mortgage companies and banks. Most of us cannot pay for a home in cash, which means we have to get a loan. As a perspective home buyer this creates uncertainty and fear, leading to inaction. The truth is that lending criteria has tightened. Lenders are scrutinizing each loan more closely. Another truth, lenders are still lending. The government still has advantageous programs to help people buy homes as well.
If you have a good credit score, a stable credit background, and you are not trying to over reach on your home purchase, lenders want to help you buy a home. Lending is their business, and executing good loans keeps them in business. Lenders are competing for good loans just as much as home sellers are competing for a buyer. If you are considering acting during this buyers market, shop around for the best loan situation and be educated on what type of loan is the best for you and your future. Instead of feeling inconvenienced by all the scrutiny of the loan process, feel comforted by it.
Shop Smart
The buyers market is on steroids. It is the equivalent of Christmas for Wal-Mart, Best Buy and the other retailers. Go get that midnight madness deal! Here are some things to think about: When lenders look at you, will they consider you a good loan? If you have a lower credit score, take a month or two and clean up your credit report. In the mean time pound the pavement. Start looking for a good home deal. Find a few homes that are in a neighborhood that you wouldnt normally look at because the homes are too expensive. You may be surprised to find that those homes are in your price range. Get a Realtor, but remember they are competing for your business too, so shop around for someone who will negotiate the best deal at favorable price.
My parting words are this: We are absolutely in a buyers market! Do not let the nay-sayers and the media scare you away from a great opportunity to get the home you always wanted.
M. Allen Kemper,
Contributing Writer
Your Credit Company, LLC
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