There's been a lot of talk recently about the condition of the housing market. With our economy struggling and the mortgage industry adjusting, it's only normal that home sales and purchases may have slowed.
With home values down about 25 percent from their 2006 peaks, home sellers may be discouraged, but experts agree that there is light at the end of the tunnel. Homebuying incentives, mortgage reform and tax credits are making it an ideal time to purchase a home.
At its height, the good health of the housing market promoted overinvesting, quick flipping, overbuilding and credit overextension.
These indulgences led to the bubble bursting. There are important lessons, however, that can be learned by looking back at the housing bust. Here are some rules that can help us avoid repeating the same mistakes:
Save for a down payment. Although you may still be able to qualify for a no-money down mortgage, having 15 to 20 percent can increase your home equity, lower your payments and help you obtain better interest rates.
Set a realistic budget. Just because you are approved for a higher amount doesn't necessarily mean you can afford it. Borrow within your means. A safe formula is to purchase a home that is no more than three times your family's annual income.
Work with a knowledgeable professional. An experienced real estate professional, like me, can help you find a home that meets your needs and your means. I understand our market and would be happy to help you.
-Viva Miami
When it comes to choosing professionals to assist you with your real estate needs...Experience is Priceless! Andre'Shambley & Miami's Best REALTOR® Team, 786-704-VIVA (8482). MiamiBestTeam@AOL.com. www.OnePlaceOpenHouse.com
Ready to refinance looking for a better rate? For your complimentary rate quote visit Jacinta Shambley, APEX Lending, Inc. JShambley@ApexLending.com. www.JShambley.ApexLending.com
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