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Why 2009 is the Time to Buy - Part 2

Personally I hate it when everyone in the real estate business talks about how "It's a great time to buy!". Of course they are going to say that, they are trying to sell you a house or a mortgage loan, or they somehow make their money in Real Estate, what do you expect them to say? (Donald Trump are you listening? Have you ever once stated that it was NOT the time to buy???) However, I do think that those who are saying it this time, taking into account the combination of low interest rates and low home prices, may actually be right. Here's why.

As a mortgage professional, I am seeing a large increase in the number of homeowners looking to refinance their mortgage loan. They have all heard about the current low interest rates and want to take advantage of them. Right now, I have enough refinances to keep me busy for the foreseeable future. I have no need to market to prospective homebuyers, but I am. There are a lot of great incentives to buy right now and I don't want anyone to miss out on these opportunites. To learn why read the previous post, A New Home For the New Year - Why 2009 is the Time to Buy.

However, I am not the only mortgage professional who thinks it is time to buy. Tennessee Mortgage Professional Danny Thornton thinks it is Time to get off the fence, and shares with us the new commercial from the National Association of Realtors with the same message. I like the commercial so much I have posted it on my own website and am sharing it here as well.

My only complaint is that the commercial should have advised potential homebuyers to get preapproved for a mortgage loan, before talking to a Realtor. What good is convincing potential homebuyers to get off of the fence and buy a home only to find out they don't qualify for a mortgage loan in the first place?

If you think 2009 is the time to buy and are ready to get off the fence and into your own home visit www.aboveallmortgage.com.

Posted by Michelle Chamberlain - Suburban Philadelphia Mortgage Broker on 01/15/2009 01:15 AM

Comments (9)

Time to Buy in the Home Buying Channel

mortgages, refinance, preapproval, fence sitters, time to buy

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9 Comments on Why 2009 is the Time to Buy - Part 2

JAN

- interest rates sure makes it more appealing for home buyers & owners considering refinancing and should motivate them. In the article Time to Get Off the Fence and Into a Home, the same message comes in an article from NYTimes.com offered by Your Money. Another source with this message was from Smart Money, Time to refinance -- or buy a home? Good information to pass on to our buyers.

Best wishes for 2009!

Trey Affolter

http://www.treysellshouses.com

About your complaint that this commercial should advise about getting preapproved first - my first thought is that since NAR put out the money for advertising, it would be counter productive to advise fence sitters to call a mortgage loan originator first. Why? The mortgage loan originator will be asking if the prospects have a REALTOR, and if the answer is "no" or "not yet", guess who will be referring one to them? Would the real estate agent that gets the referral even be a member of NAR? (not necessarily).

If an entity that deals with mortgage loans (National Association of Mortgage Brokers?) had put out the money for the campaign and is paying for the advertising on a national level, then of course it would make perfect sense for the advice to be to talk with a mortgage loan person first.

Right you are Michelle. As far as getting pre-approved, I think that if the clients isn't pre-approved, the Realtor is taking the risk of just spinning wheels. But, if that is what you want to do...go for it.

Trey - Thanks for posting your comment... for the third time on one of my posts.

Jim - I get why the NAR is not going to advertise for mortgage brokers or lenders, however your comment makes it seem as though you don't see the value of being preapproved first.

Fred - Maybe some people like to spin wheels? Doesn't make sense to me though, especially in this market when people are taking their time to buy. Why waste 6 months of weekends showing homes only to have the client get turned down?

Michelle - That is a cute commercial I have not seen that one yet. Thanks for posting it.

JAN

Michelle - "Personally I hate it when everyone in the real estate business talks about how "It's a great time to buy!". Do you think that sales pitch will ever go away? Hell, I say the best time to buy anything is when nobody else wants it... but that's me. And that's "investment" thinking. When we get back to calling a house, a home... that's when sanity will start to prevail again. Sure, buying a home is an investment but it is also a good way to keep yourself from freezing your posterior off in various parts of Pennsylvania. As far as the commercial, I still don't like NAR so much... seems like the union forgot about the cause.

Best wishes for 2009!

Trey Affolter

http://www.treysellshouses.com

Sorry, I'm a smart alleck by nature;)

JAN

Jason - I agree that a house should be looked at as someplace to call home first. As far as your smart alleck comment, I first read it thru my email and thought it was one of those AR glitches again.

FEB

Michelle, low interest rates and lower home values, it should be a good time to buy. We all need to stress the long term aspect and advantages of owning your home.

The piece of the puzzle that will need to occur is for people to feel secure with their jobs. If you are worried that you will have a job, low interest rates and lower home values will not matter.

We need for the politicians and media to quit talking down the economy soooo much!

Jay

But Jay if they don't talk down the economy how are they going to get their massive spending bills passed?

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