If you are considering buying a home in 2009, or perhaps have been working on it but it hasn't happened, you might want to do some planning.
What IS your real estate buying strategy?
Do you HAVE a strategy or are you going to just go about it haphazardly?
Consider the following:
DON'T IGNORE THE INTEREST RATES
Interest rates are historically low and there are predictions of 4.5%. It's worthwhile checking into what programs you can qualify for and what this means financially for your monthly budget. Be aware that loan qualification requirements remain very tight and a good number of folks may simply not qualify for the lowest rates, or at all.
UNDERSTAND NEW LOAN LIMITS AND CHANGES AND GET PRE-APPROVED
It's wise to consult with a knowledgeable mortgage broker to get the low down on all the programs and some of the new loan limits - FHA, VA and conforming - that are being implemented in 2009. And find out what you qualify to borrow, and make sure you get a Good Faith Estimate from your mortgage professional. Check back in with your mortgage broker if you were pre-approved some time ago
CONSIDER ALL AVAILABLE HOMES IN YOUR PRICE RANGE
More foreclosures are expected in 2009. Provided you have the stomach for waiting for a short sale or foreclosure to close, there may be even more opportunities. I would not recommend focusing only on distress properties, although for some budgets and markets you may not have a choice. Consider all your options so you can make the best choice for you, and understand the risks and implications of the distress versus the typical sales.
READ MORE: Buying a Short Sale
BE THOROUGH IN YOUR RESEARCH, BUT DON'T GET PARALYZED BY THE INTERNET
Make sure you do your research to learn about your local housing market and the homes available to you. But don't get so hung up on on-line searching and avoid the real world - drive bys and open houses for example. The Internet is a tool but don't depend on it to the extent you cannot or will not make a decision.
READ MORE: Tips on Becoming a Good Buyer
HOOK UP WITH A QUALIFIED REALTOR IN YOUR MARKET
If you are still going it alone, I recommend hiring a knowledgeable REALTOR who knows your market to help you navigate the transaction, especially if you are considering short sales, foreclosures and REOS (make sure your agent has some experience with these properties). Distress sales can be complicated and frustrating and you want someone who will be an advocate, not a paper-pusher. Use social media to help you if you don't have a referral - blogs, Twitter, Facebook and LinkedIn and other social networks where agents congregate.
None of this probably matters if you aren't committed. If your need to buy is not real, or you are waiting for the bottom to arrive, I'd say the commitment to buy is not really there. Plus you ought to have an idea of what you want to buy, or where you want to live, etc.
A strategy won't do you much good if you don't know what your goal is. You need to know where you are going in order to figure out how best to get there.
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If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your homes search, please contact me by phone or text at (760) 840-1360 or email me at JDowler@remax.net.
All content copyright © 2008 Jeff Dowler Carlsbad Homes and Real Estate Tidbits
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