Even those people who recognize this is a buyer’s market and would like to buy a home are shying away from banks and mortgage brokers because they are afraid that they won’t get approved for a loan because they don’t have enough down payment or they are afraid of the loan conditions. . There are many good loan programs for both the first time buyer and the seasoned veteran.
Let’s look at the facts: What makes 2010 a buyer’s market?
Fact #1: If you look at the historical data from the Federal Reserve regarding interest rates on commitments for fixed-rate first mortgages, you’ll see that the current rate is down at 4.5 as of August 2010. Now compare this interest rate to the last two pervious years and you will see that those interest rates were a higher! One reason, 2010 is a great year for home buyers.
Worried about down payment?
Fact #2: There are programs designed to offer the buyer different down payment choices. One example, FHA offers a 96.5% loan, requiring only 3.5% down payment from the buyer. Another good program called the USDA Rural Development Program makes available a 100% loan options without private mortgage insurance. There are specific loan programs for teachers, police officers and firefighters – our community service home buyers. Special loan programs for medical personnel. And local builders have been creating/purchasing loans for their buyers which provide reduced interest rates and low or no closing costs to give their buyers more money to go towards their down payment. This is a great time to be a buyer!
Worried about what home choices are available?
Fact #3: June 2010 saw a decline in “Pending” listing status. This means there are more available homes to choose from and fewer buyers to compete with for homes. There is more to negotiating a home than purchase price. Sellers are providing more concessions than ever before when negotiating the sale of their homes. Once again, giving the buyer more buying power!
Steps to a Better Home Buying Experience
When you are purchasing a home or even thinking about it, it can be both exciting and scary. However, you should not let misinformation scare you away from realizing your dreams. Buyers have more choices than ever. The agents at Buyers Advantage Group can help you in your quest to find the perfect home. Our exclusive buyer agents act as your consultant and educator to protect your interests through every step of the buying process to secure the right home, the right loan and the right concessions. If you have been thinking of buying a home, there is no better time than now to assert your power as a buyer!