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Should the client wait?

By
Mortgage and Lending with Guild Mortgage Company

Multiple clients have asked should I wait.

Here is the worry. The first time buyers that have made offers on bank owned or short sale properties have yet to hear back if their offer has been accepted.

Negotiations can take weeks... and in some cases months.

The time is ticking, as they need to be in mutual acceptance by the 30th of April 2010.

The question I am hearing a lot is "do I wait to hear back from the bank or go out to find another property?"

$8,000 is a pretty large incentive to miss out on. In addition FHA has increased the upfront Mortgage Insurance Premium from 1.75% to 2.25%, USDA may discontinue the 100% Rural Housing Program, and last but no least interest rates have been on the rise.

My answer is.... If you have found the right property then wait, but make sure that you are prepared for the following changes

Potential higher rate, No tax credit incentive, and if your plan was to use USDA funding then you may look at a back up plan.

 

 Heather Burns

Home Mortgage Consultant

Guild Mortgage Company

425-945-8035 Office

206-714-3522 Cell

206-577-2901 Efax

hburns@guildmortgage.net

Apply Online: http://www.guildmortgage.net/heatherburns

Follow me on Twitter: http://twitter.com/urownlo

Randy Landis
Living in the Pacific - Tupelo, MS
Life is Good in the Tropic Shade!

All these changes do not bode well for the industry going forward. I guess 'CHANGE' is here to stay for awhile.

Apr 09, 2010 10:35 AM
Ellie Shorb
Compass Real Estate - Chevy Chase, MD
Realtor DC, MD & VA Luxury Home Expert

Your post brings up multiple good points- the tax credit will not get extended though, so you can only wait so long!

Apr 09, 2010 10:40 AM