Living Within Your Means

By
Real Estate Agent with Keller Williams Heritage

With countless negative publicity being portrayed all over television and radio regarding the real estate market, one fact has held true...there is nothing that compares to the joys of being a homeowner. It has been one of the most exciting times my wife and I have ever experienced. Seeing the hard work and determination pay off in regards to coming home to something you are proud to call your own is priceless. Growing up and living in San Antonio is also a blessing. Sure, 100% financing no longer exists on conventional loans. This is part of the process in correcting the current situation in the market. There were too many loans being offered and basically forced upon people that could not afford the home to begin with. Loans given to people that had a variable interest rate that has now increased to a level where people can no longer afford to stay. This includes builders giving loans to people with mortgage companies quoting a payment based upon unimproved value in regards to taxes and when the next year comes around and the property is reassesed, the monthly payment increases by 3, 4 or 500+ dollars! In today's market mortgage officers no longer have conventional programs that get you into a home with no money down, however that does not mean that there is not a legitimate loan program out there that will still work for you and your family, and one that most importantly you can afford! There are tons of programs out there for first time home buyers, teachers, fire-fighters....you name it! When shopping rates, please get rates from multiple companies and make sure you are getting the very best deal. It is also recommended to search the internet and the better business bureau and find out what kind of feedback that mortgage company or broker has been receiving and what other customers who have used them think.

In San Antonio, we still have one of if not the best real estate markets in the nation. Recent articles in the San Antonio Express News even within the past 2 months have backed this fact, demonstrating that property values in and around our area are holding steady and in most cases still improving. This is not the first time our economy has experienced a decrease in property values nationwide, nor will it probably be the last. Just like most things, the real estate market has always changed and fluctuated. As a dedicated team of real estate professionals, we have always preached to our clients that it is in their best interests to live within their means. This holds true to everyone, including real estate agents themselves. Just walking throughout a real estate office you might overhear several agents talking about their home that is now for sale. Of course this was a home that was purchased two or three years ago when the real estate market was booming and now that the market has slowed, this is a home that is no longer affordable. When purchasing or even remodeling a home, please do so within your means. This means that you improve or purchase a home based upon a fixed budget that you know is affordable. If even a minor change to your financial situation would cause you to no longer afford a home, then to be honest it is probably not in your best interest at that time to purchase. Another wise thing to do is to create an emergency fund of 6 months income over time in the event that if something does happen to your financial situation, you and your family could continue to survive.

Despite what most television and news articles portray, the real estate market will continue to exist! There is nothing that can compare to being a homeowner and calling something your own. There has been a decrease in the number of people who are currently purchasing homes...there is no hiding that fact. There has been some slow-down in the market. There has been some changes to what is being offered in the mortgage industry. Again, this is part of the process in correcting what has happened in the real estate market. When the time comes for you to consider purchasing your next home or renting again for another 6-12 months, take the time to consider if a home purchase is reasonably in the cards for you at that time. Remember to live within your means. There is nothing wrong with renting, most of us have all been there before at some point in our lives. Sit down and carefully review your financial situation, get in contact with experienced, qualified and reputable loan officers that will accurately and honestly assess your financial situation and recommend the next course of action from there. If you have difficulty finding reputable loan officers in and around the San Antonio area, contact us at (210) 477-4897 and we'll gladly refer you to trusted loan officers that we have used in the past with excellent customer reviews. Again, we are here to help in any way possible. We will always be up front and honest as we feel that is the best policy and has always treated us well with referrals and repeat business from our clients. Please do not hesitate to contact us with any questions and/or comments.

Comments (4)

Joshua & Kathy Schmidt
ERA Henley Real Estate - Cabot, AR
This is something that every Realtor should have been stressing for years and should continue to stress.  I hope in lite of the recent mortgage travesty that people will look before they leap.  Good message!
Apr 23, 2008 07:56 AM
Ted Mackel
Keller Williams Realty Simi Valley - Simi Valley, CA
Simi Valley Real Estate Agent
Welcome to Active Rain.  Make sure to check out other blogs so you can see what works and what does not.
Apr 23, 2008 08:08 AM
Kirk Westervelt
Van West Realty - Greenville, SC Realtor -Short Sale Expert! - Greenville, SC
Kirk Westervelt, Broker In Charge, Van West Realty - CDPE - Short Sale Agent - Home for Sale - Greenville, Simpsonvil...

Amen to that!

Living at or below your means is the first step towards building wealth!

Control your spending, live on a budget and save and invest!

Welcome to Active Rain! 

Apr 23, 2008 01:16 PM
The Trumm Team Omaha Homes for Sale, Real Estate
Keller Williams Greater Omaha - Omaha, NE

Welcome to ActiveRain!

If you would like a few tips on getting the most out of ActiveRain, please visit my blog Welcome to Active Rain.  It has a few simple steps of what to do now that you have joined.

If you ever have any questions, just let me know.

Troy Trumm
Apr 23, 2008 01:16 PM