Rates are low, housing prices are low, the government is giving an $8000 tax credit and sellers are dealing. Are we seeing a perfect storm scenario for Chicago first time home buyers? While there have been reports that home prices are recovering that does not mean home prices everywhere. Sellers are dealing right now as are the banks that own properties for sale.
Did you say the seller will pay my closing costs?
A large percentage of my business is working with Chicago first time home buyers and I have seen clients getting some incredible deals. In the past couple of months I have seen sellers paying 3-4% towards a buyers closing costs. In many cases this has allowed the Chicago first time home buyer to not only have their closing costs paid but also have points paid to buy down their rate.
Take the seller paid closing costs, low interest rates and some incredibly good deals on homes and i think this is the perfect time to buy a home. I have had some clients say, “Roy if I sell my home now I will be selling at the bottom of the market.” While it is true selling now may be at a low point in real estate values the new home you are buying is also at a low point. Some sellers just do not have not the equity to be able to sell their home and have money to put down on a new home. Chicago first time home buyers do not have the obligation of a current home to sell so there has never been a better time to buy. Chicago first time home buyers should not delay too long because as with all storms this storm will eventually pass for the first time home buyer.
Update: With talk of the minimum down payment on an FHA loan being increased from 3.5% to 5% there should be a bigger sense of urgency for Chicago first time home buyers.
For more first time home buyer information vist my site at www.chicagolandmortgagesolutions.com.
Some other blog posts of interest for Chicago First Time Home Buyers:
Overlooked downpayment sources: http://chicagolandmortgagesolutions.com/chicago-first-time-home-buyer-4
Closing costs: http://chicagolandmortgagesolutions.com/chicago-first-time-home-buyer-5
First Time Home Buyer Credit: Tax credit extension
Press Release: www.prlog.org
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