Chad McDowell, a Realtor in Tennessee, talks about seperating fact from fiction with regards to "Buy Or Not To Buy". His Blog post below reflects some of the same sentiments here in the Tampa Bay Area---a distressed market, and misguided and apprehensive Buyers.
However he notes the same positive realities we described earlier---that interest rates are incredibly low, banks are lending [to qualified buyers], and that no doubt it's a Buyer's market.
Ok, so the housing market isnt what it used to be. Stock market is under 7000...been awhile since we've seen that. Unemployment is up...again. Foreclosures are at all time highs. Nothing another Trillion or so cant fix right?
So, what about those Tennesseans that WANT to buy a house? Prices are low, good investment right? But all you hear about is that NOBODY is lending money. Banks are holding on too it with both hands!
Lets separate truth and rumor. You can STILL get a home loan. You can STILL get a loan for very little or NO money down!
The downside...you actually have to qualify for it! What a concept! Banks finally figured out that lending money to folks that cant pay it back was bad business. So, they went old school. Now, you have to have a job. Even a reasonable, but not outstanding, credit report. Oh...and you have to make enough money to afford the house that you want. I know, I know...sounds pretty strict right? Truth is...it's really not. Its the way that it should be.
Where is the pride in buying a home, if the only requirement for home ownership was the ability to fog a mirror and sign on the dotted line.
Oh, and one of the best parts about buying a home in a down economy...interest rates are historically low! Nice, right!?
And I was going to save this for another blog post...but you know all that money that they are throwing away(um...I mean spending to stimulate the economy...my bad), they actually are throwing some your way! At least they are if you have never bought a home before! First Time Home Buyers in Tennessee receive 10%(up too $8000) of the price of their home in a CASH refund next time you do your taxes! That means any First Time Home Buyer in Tennessee buying BEFORE December will get $8000 CASH(as long as the price is over $80k).
Hey, the stimulus wont last forever(Thank God), so take advantage of what opportunities there are in a down market.
Happy Home Shopping!