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First Time Homebuyers Have Multiple Advantages Today

By
Mortgage and Lending with NeTraffic Management

Over the last 5 years we have seen many opportunities for first time home buyers in the mortgage industry.  Loan programs were easier to get, had lower rates, and fees were more competitive than ever.  The only thing holding most homebuyers back was the cost of homes.  Home prices soared, and often times a property listed at a buyers loan approval limit would sell for thousands more, driven up by multiple offers and bidding wars. 

Today, buyers are truly in control of the process!  Loan programs are still great, rates down in the 5.75% range can be had with 100% financing, and home prices have leveled, or even softened in the last few months.  Buyers have a real advantage right now... they have leverage back!

Another great benefit to today's buyer is the readily available short sale.  This is where the bank will take less than what is owed on the property being sold because it is no longer worth what it is mortgaged for.  Buyers who work with a savvy loan originator or real estate agent can purchase these properties at a substantial discount, BEFORE THEY GO BACK TO THE BANK! 

The short sale is an effective way to obtain a great property with instant equity.  Buyers should educate themselves on the process, but they don't need to become experts.  Work with a professional who will handle the negotiation for you, and the process will be much like any other purchase.  This makes it an ideal situation for a first time homebuyer.

In the last few months, we have seen our borrowers get offers accepted on properties listed for over $600,000 at less than 80% of the asking price.  One case in point was a brand new home in a great neighborhood.  Although a slight fixer can yield even higher discounts, don't overlook a new home.  New homes can be shorted too, although typically not at quite the discount.

Buyers who want to take advantage of great rates and learn more about buying properties at a discount should visit http://www.whitewolfemortgage.com/ and request more information.  The end of the year is perfect timing to get the biggest discounts from the bank.

Current blogs can be found at http://www.whitewolfemortgage.com/myblog

Tagline for Travis Wolfe WhiteWolfe Mortgage

Comments (2)

Terry & Bonnie Westbrook
Westbrook Realty Broker-Owner - Grand Rapids, MI
Westbrook Realty - Grand Rapids Forest Hills MI Re
A good agent with superior knowledge of the markert can create equity for buyers in this market. Thanks for the post.
Nov 30, 2007 04:34 AM
TRAVIS WOLFE
NeTraffic Management - Happy Valley, OR
You are right Terry.  I am surprised to see so many agents still steering away from short sale opportunities.  Travis
Nov 30, 2007 04:37 AM