Protect Thyself - Tips for Homeowners and Buyers

It's a time that will strike fear in the cyclical industry of real estate, the crash of 2008. The number of home foreclosures, nationally rose dramatically, and commercial real estate became pinched. The market began to tumble and literally thousands of brokers and bankers involved in the mortgage industry closed their doors.

What if this kind of crash re-occurs? What can you do to protect yourself and one of your most important assets? The following tips can help protect you, and yours:

First, make sure you understand exactly what kind of mortgage loan you have and the implications of your mortgage type. While adjustable rate mortgages are attractive, allowing homeowners the benefit of lower interest rates, investigating all types of loans is advisable, and a discussion with a qualifying, knowledgeable mortgage lender is the best place to start.

If you have your house on the market and are experiencing difficulty selling it, recognize the fact that you may need to make some concessions on the terms and/or the selling price. If you cannot lower the price, think about whether you might be better off financially to rent the home over a short period until a better position is available.

BUYERS - As a buyer, you need to make sure you give careful thought and consideration to the type of mortgage loan you obtain. If you are a first-time homebuyer and/or you have a credit rating that is less than favorable, you might consider taking out an FHA mortgage. If you are a veteran, a VA mortgage is also a good option. Both of these types of mortgage products offer terms that can be more attractive than other types of mortgage products. While there are numerous options, it's imperative that you research such mortgage offers carefully before you try to take advantage of one.

If you need advice, or would like to speak with a "Client First" Realtor who knows the market, is well-versed on mortgage options to fit your need, and help you get into a home that's right for you and your situation, contact Wes Shields of The Shields Team of Keller Williams Realty. The office number is (423) 433-6517, or feel free to stop by our office at Keller Williams Realty, 1033 Hamilton Place in Johnson City. We're here to help!