I said JUMP - It's the best time to buy a home now !!!!

Mortgage and Lending with Social Media - Infinity Home Mortgage Company, Inc


keys to home ownership

I had written a blog post a few weeks ago, Conventional Pricing Adjustments coming in April, in which I talked about how FHA had raised it's monthly mortgage insurance premiums back in October and how Fannie Mae will be adding onto their pricing adjustments in April of 2011. A realtor had stated this - "We saw the writing on the wall a while ago that this was bound to happen.  If any time for a buyer to get off the fence and purchase would be now."

I have been reading these kinds of statements for the last 12 to 18 months. When we saw the home buyers tax credit, when values were dropping, and when interest rates dropped. But wait, are these the reasons why one should buy a home now? Or when we see changes in loan programs for the worst, one should blurt out, "now is the time to buy, before it gets worse." Sorry, but there is a lot missing to such statements. To me, there is a lot of false sense of education, because one should not buy just because of these reasons. Keys to home ownership should be thought out and not just because someone says it's the right time to buy now.

It's almost like the advertising that tells you to buy a car, tv, or furniture with no money down and interest free for the first 18 months. I wonder how many of those that buy very quickly when seeing such an add, plan out their future payments. Or does one just say, "awe, when that time comes, I'll deal with it then."  Raise your hands... I am sure some of you have said this one time or another.



baby steps should be taken when buying a new home

Seriously though, this is not to throw anyone under the bus or to mock them for such thoughts. But when buying a home, it will usually be one of the biggest investments in your life time. There should be careful planning.  What things should be thought about when buying a home?

  • How much of a payment can I afford? - One really needs to evaluate this; going over their budget to include their finances, their short and long terms goals, and making sure that they will have some cash assets after buying their new home.



The end result is that one should not be tickled pink from such incentives, especially if they weren't truly prepared to buy now.  Or to read comments from people telling you that you should by now. Making you feel like an idiot if you don't take advantage of such deals and or incentives now. I still get some home buyers that call me up last minute when their credit is very less than perfect and or that they have no money to their name. It should take some careful planning. Many say talk to a realtor first, but sorry, I will disagree. Speaking to a loan officer that actually understands finances, deals with money every day, and works with different mortgage programs should be your first stop.  The loan officer will usually be the one that understands credit and credit repair, and be able to help you with this and other questions. My main point though.... Be careful when buying your new home and have a plan, not a buying itch because it sounds good.



- In my opinion, it's always a great time to buy a new home, when having a plan and when you have been properly educated on the home buying process, even if you have bought before.



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Copyright © 2011 by Jeff Belonger of Infinity Home Mortgage Company, Inc

Comments (5)

Frank Nuebel

I could not agree more.  Business has really picked up this year and I think most buyers are ready to make a decision.  They are not feeling like interest rates can go down too much more though who knows?  Most of my clients believe this is not the time to watch the interest rates pass us by or wait until there is some tax credit that can only interfere with a buyers decision.  The tax credit jump started the market a small amount for a small group of people.  I would hope that we will not do a tax credit ever again.  I do not feel it is time to reward people for buying anything.  I want people to make decisions only based on the market, their credit etc.  I think this is the time to get serious and look for a good home at a great home at a grea price.  They are out there and it takes a trained real estate agent to recognize one and to get there before everyone else.  If people are looking to move to Denver, they may want to visit http://searchforhomesincolorado.com to search properties for sale and look for that perfect home.  Thanks.

Jan 22, 2011 01:28 PM
Mark Organek
And the United States of America - Mesa, AZ
It's not a game, it's your life.

Jeff - I was worried a bit that you would be pushing the recent and upcoming changes as a reason to buy but was very glad to see that you are trying to help people make sound decisions, not those motivated by fear.

Jan 22, 2011 02:15 PM
Marilyn Boudreaux
Marilyn Boudreaux, Century 21 Bono Realty - Lake Charles, LA
Lake Charles LA Century 21 Realtor

Making an informed decision is always best.  I just hope the buyers who are ready to make a smart investment do so and take advantage of the lower rates before they rise again--that is if they are prepared and have evaluated their finances as you mention :)

Jan 22, 2011 02:16 PM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans


FRANK... . there are people still waiting for home values to come down more, thinking that interest rates will stay the same. overall, it shouldn't matter what is going on, but if you actually have a plan when buying a home.. and not forcing yourself just because there are incentives or low interest rates.  Just sayin.. thanks  ps.. and I can't e-mail you and I was going to delete your comment, because you slipped a web site into your comment. I didn't check, but are you a member of AR and forgot to sign in? I will leave your comment up for a little.... but please take out the link to the web site. thanks

MARK... . I always love a good title to maybe bring someone in, but then to talk opposite of my title. ;o)  And yes, I see some motivated by fear or the fear that some sales people instill in others. thanks

MARYLIN... . well, one would think that this is the best way to make an informed decision, to have a plan and to be educated on the topic. But this is not always the case. Thanks for reassuring this..


Jan 22, 2011 02:24 PM
Markita Woods NMLS#196099
Fairway Independent Mortgage Inc. - Woodbridge, VA
Queen of Mortgages - FHA, VA, Conventional, USDA

Nice post once again Jeff, at the end of the day I agree buying a home should be an informed decision, not just a knee jerk reaction to marketing or advertising for that matter.

Jan 23, 2011 12:04 AM