Last week on Forbes.com, they ran an article written by a financial planner, John E. Girouard, entitled "Buy That Dream House Now or Wait Until Prices Fall Further"? In this article, Mr. Girouard made the following statement regarding his view of the present housing market and the wisdom of waiting further to purchase a home, should you be interested in doing so ...
"Trying to time the housing bottom is as much folly as trying to time stocks or any other investment vehicle. In fact, it’s greater folly because if housing prices do fall further, it’s likely to be because mortgage rates are rising, which would mean that over the long term that slightly lower price you may have paid could end up costing more in carrying costs than you saved. Furthermore, how much lower could prices go? The economy can’t get much worse than it’s been in the past three years and the difficulty in getting a mortgage couldn’t be much greater."
He goes on to make several more statements regarding the wisdom, the timing, and the financial aspects of making a home purchase. His article, paired with others I've seen as of late, make a very convincing argument to me as a mortgage lender as to why buying a home NOW makes good financial sense.
Of course, these articles are aimed at convincing potential buyers "sitting on the fence" or dreaming of home buying to take action. And why do so many within the industry believe that those buyers are out there? Well the frontline of our industry, the real estate agents, will tell you they ARE receiving inquiries regarding homes. But even more convincing are the recent statistics and surveys taken that prove that the "American Dream" is alive. Buying a home IS still the dream of the majority.
One such survey was the Lake Research Partners and Public Opinion Strategies. Its' synopsis stated, "Despite the recent housing crisis and perceptions of risk in housing markets, 75 percent of the participants agreed that owning a home is worth the risk." It seems to me, no matter how badly the market has beaten us up, the vast majority of Americans still want to reach for that dream.
So that tells me there's something else, besides the financial aspect of this important decision, afoot within our decision-making. That is NOT all about the dollars and cents of home buying. There's real and strong emotions at play.
And THAT seems to me that what the government and our politicans have seemed to overlook or underestimate during this whole housing debacle. Just how emotional a decision and central to our being that this "owning a home" is for we Americans. Yes, the loss of equity and those "dollars and cents" have us upset. But it's what those homes and those dollars and cents represent and really mean to us that have us irate and so very upset.
Our homes are all about security. About family. About good friends and neighbors and special times together. They represent how hard we've worked. What we've achieved. Our accomplishments. They're our golden sunsets. Our peaceful senior lives. A home is what we planted, took root, farmed, and grew. Mess with all of that and we feel pretty fragile. Rightfully so. A home is a very deep, very strong, very basic set of emotions for most of us.
And those deep emotions motivate us to still want to buy and own our own homes. No matter the risk. No matter the hassle. No matter the hard work it takes to buy and own them. We still want what those homes represent to us ... and for our families and futures.
And that is why I say, "Don't contact me for a mortgage until you can make this statement ..."
"I want to own my own home for reasons other than just financial ones".
I can sit in front of you as a mortgage lender and show you charts, surveys, facts and figures, equations, appraisals, and all the forms that our government demands until we're all blue in the face ... and yes, they will tell you whether you CAN buy a home ... if you're capable financially.
But they will NOT get to the core or heart of the matter and provide you the answer as to whether you personally should buy or rent a home. You shouldn't look for that final determination or answer in anything I or anyone else provides or says.
No. That answer ... that gut feeling ... that final decision will be found within you. Only YOU can answer whether you are part of that 75% of Americans that still believes that owning a home is worth it. Only YOU can decide whether the effort, the work, the responsibility, the risk that goes along with home ownership is worth it. Only YOU can determine whether you're mentally prepared. Only YOU can determine just how badly you want it.
But ultimately, unless you're a real estate investor, you should buy a home for one reason, and one reason only. And that's because you want to, are ready to, and are commited to becoming a home owner.
Until you can make that statement, don't call me for a mortgage ...
* Of course, if and when you make that decision ... and it is favorable to buying a home, contact me. We'll work together and prepare you so you can buy that home you're dreaming about.
I can be reached at any of the following:
Direct: 815.277.4036 Cell/Text: 708.921.6331
Email: gene@chicagobancorp.com
Website: www.genemundt.com
Skype: 630.219.1316
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