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A Realtor’s perspective - Home loans still available

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By Mike Freeman Friday, 06 February 2009

It’s a buyer’s market. And not a bad time to sell either.

If you spend much time watching television or reading the newspaper lately, you would think that there was no hope of getting a loan to buy a home or that it was a bad time to sell a home. This is not necessarily the case.

Home loans are currently available in all shapes and sizes, interest rates are as low as they have ever been and there has not been a better time in recent memory to buy a home. As a Realtor, I receive calls every day from my mortgage providers letting me know how low rates are, that they have plenty of money to lend to qualified buyers and that qualifying might not be as hard as you think.

Real estate agents should provide clients a list of several reputable mortgage providers to get the application process started. It is best when you are looking for a new home to get qualified and, even better, pre-approved before beginning your search. This enables you to act quickly and to place an offer if you find the home you want.

Frequently asked questions

Do I have to have perfect credit to buy a home?: No, however, you do have to show recent good credit and the ability to pay.
Do I have to have 20 percent down to buy a home?: The FHA down payment requirement is 3 1 ?2 percent, and there are some zero-down programs available, such as VA and USDA loans.
Should I wait until prices go back up to sell my house, so I can buy a new one?: Many homeowners are not selling their homes to buy a new one because they want to wait until prices go back up again. The problem with this thinking is that while you are waiting for the value of your home to go up, the value of the one you are thinking about buying is going up too, so most of the time you end up breaking even.
Do I need a real estate agent to purchase a new home?: You don’t need one, but it is recommended. While most of the sales representatives that represent the new homebuilders are good, honest people, they are there to represent one person: the builder. A real estate agent many times can help you negotiate a better price, more options and a better lot and can also help you with the process of selecting the best builder for you. They will represent your best interest.
Prices are great, the selection is good and this is a great time to buy a home.

Some basic requirements to qualify for a home loan:

Two years of steady employment, preferably with the same employer or similar line of work
College degree and working in your degree field
Last two years of income should be the same or increasing
Credit report should have less than two, 30-day late payments in the last two years
Bankruptcies must be at least two years old, with good credit since
Foreclosures must be at least three years old, with good credit since

Article provided by Mike Freeman, Century 21 Westbank Summit, 694-9769, This e-mail address is being protected from spambots. You need JavaScript enabled to view it , www.freemancentury21.com