Is It The Right Time To Purchase Real Estate
The most common question asked in these challenging times; is it the right time to purchase real estate? Have we seen the bottom of real property pricing? I would like to say the answer to that question is yes! But when it comes straight to the point, are you the consumer in a position to take advantage of some of the wonderful opportunities which are out there. After the collapse of many financial institutions, fraudulent lending practices and stricter guide lines, it can be rather difficult to obtain a mortgage a loan even with prefect credit scenarios. Investing your hard earned money into real estate or the stock markets requires common sense and moral comprehension.
In all truth no one can be absolutely sure on when it's the right or wrong time to invest. Investing is a gamble no matter if its real property or stocks, most answers come from market trends. Your positioning determines everything, no matter if you are passive or an aggressive investor. If you want to purchase a home ask yourself when entertaining the idea; will this home be for primary purposes or as an investment, these two questions are important when making a loan decision. Coming from my professional point of view, real estate is still the safest investment you can invest in. However it comes with many risks, so this is where your research comes into play.
As mentioned before there are great opportunities out there, we are witnessing some of the lowest rates we have ever seen. Rates are hovering around the 4.875% and 5% APR however this will change, when? I cannot say but these rates will change and most likely to be in the high 6 or 7% when changes do occur.
The first time homebuyers tax credit is still in effect, but this credit will end in April of this year unless the government chooses to extend it for a third time.http://www.irs.gov/newsroom/article/0,,id=215791,00.html
Your credit! Most lending institutions will not lend with a credit score under 700 however as of March of 2009 FHA credit score requirements are 620.
Keep in mind the FHA process can be rather lengthy, so be prepared for a slow closing if you choose this option but if you have imperfect credit this is the best way to go.
The down payment requirements for an FHA loan is 3.5% so this is really helpful for those who are tight on closing cost and other charges if any.
http://mortgagedfuture.com/fha-increases-minimum-credit-score-requirement/
To sum up the question IS IT A GOOD TIME TO PURCHASE? The answer is simple; if you are in a great position then the answer is Yes.
Keep in mind to do your research when choosing your mortgage or real estate broker professional it's essential to have a professional who will get the job done with great ethics and knowledge of the real estate market current market trend.
In the end you the consumer will be paying the monthly mortgage payment, so it pays to do your research in order for you to be satisfied.
If you are in need of more advice or have any questions please do not hesitate to email me, I will be happy to answer any concerns you may have.
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