Are you considering purchasing your first home? Are you ready to be a first time homebuyer? You will want to consider whether this is actually a good time to be buying a home. The news doesn’t look all that promising lately with people losing their homes to foreclosure and the economy is the worst it’s been in years. Despite those facts, this could actually be a very good time to buy a home if you are a first time home buyer. Prices of homes are actually very low in America at the moment so first time buyers should be taking advantage of that. If you look back seven or eight years you would have been paying big dollars for small homes, but now you get a much better home for your money as the economy has changed and now homes are selling for bargain prices.
To understand the buying market you need to understand very simple, basic economics. Supply is higher than demand! There are more homes available than there are people who can afford to buy and as a result the prices have dropped. Because there are not as many buyers at the moment, real estate agents are desperate for buyers so they really want your business. Many real estate agents are offering all kinds of incentives to entice people to buy. In fact, if you are looking to buy a home that has been on the market for quite some time, you may be able to grab a great deal with an incentive like a cruise or a vehicle to go with the home.
If you have never had a mortgage before you might be concerned about whether you will qualify for a loan. If you have a good credit score then you shouldn’t have any problems being approved for a loan. Many lenders are careful about whom they lend money to these days but they are still lending money to first home buyers. If you have a decent credit score and a job then most banks will be willing to give you a loan.
When a home goes into foreclosure and the bank takes ownership of it they will often sell the house at a ridiculously low price. Banks are not in the home selling business, they are in the banking business, so they don’t want to hang onto homes that have come into their possession, and they just want to get rid of them quickly. You can take advantage of a home in a banks possession and grab a real bargain price plus the added advantage of the paperwork all going through much faster.
It is an anxious time you are about to purchase your first home so just remember to plan everything carefully and get some good financial advice. If you seek financial advice before you shop for your new home then you will know exactly where you stand financially and how much you can afford to spend on a house. Owning a home is a great investment for the future and can give you and your family stability. This is a great time to buy when the prices are so low so if you have a secure job and a good credit rating then why not become a first time homebuyer.