So many times I have heard customers make the statement that they are going to "feel out the market" and it just makes me shudder. With the rates so volatile and the uncertainty of tomorrow's housing market, today is the time to snatch up that home. If the companies such as Fannie Mae and Freddie Mac were to cave in you might be able to buy a house a lot cheaper but at what cost. I can tell you simply by this factor; interest rates.

As sure as the property values would plunge into the deep blue sea, the rates would sky rocket and what might be 6.5% today could translate to 13% or maybe even 18% tomorrow. And what does that mean? Well, lets take a look at it. A house that now cost $100,000 and has a rate of 6.5% carries a Principle and Interest (P&I as we call it) payment of $632.07. With that said, the same price at 13% would equate to $1,106.20 almost doubling the price. Overall, you pay for it in the long run by paying more for the interest than you would have if you bought when the prices were normal..

This type of thinking is the same as playing Russian Roulette. Taking a chance on the market just does not make sense. Frankly, I can not understand any customer that might think this way; it is ludicrous. It seems that they are allowing themselves to see how bad the market can get before it rebounds. As the saying goes, it is always darkest before the dawn.

Now, what I would advise is to call your mortgage people and get approved first. If you do not have a mortgage person, feel free to contact us and if we do not do your state, we will refer you to an ethical and responsible lender that does. Once you know what you can spend, then it is time to go find a Realtor and let that person know the maximum amount that you can spend and give them a range that you want to look in.

After that, you are equipped with your pre-approval letter and armed with your Realtor by your side. Figure a time line that you want to be in this new home and make the committment to seriously look. I hate to tell you, you are not the only one looking at that home. Once you have looked at a few homes, you will narrow it down.

I will leave you with this story. When I bought my home in Florida in 2004, I knew the home was the one I wanted when I walked in the door. When I bought my home in the Atlanta area, it took me looking at almost 100 homes to find the one. And that was done in a weeks time. Imagine that!

About the Author

If you are in the market to purchase a home or even refinance an existing loan and you want a loan officer that will walk with you every step of the way, then contact Danny or Rich of the Thornton Team at Home America Mortgage today. We can have you pre-approval in as little as 4 hours. You can visit our website or send an email to thorntonteam@homeamericamortgage.com or call us @ 865-951-0522.