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Where Do We Go From Here If We Can’t Buy A Home Now?

By
Mortgage and Lending with Karen Cooper | Sr Mortgage Loan Originator ! NMLS # 223305 | First Federal Bank of Florida, Ocala, FL NMLS 223305

Major decision, My Decision Maker by ~Molz~ photo courtesy of flickr.comAs exciting as it has been to see so many first time home buyers join the ranks of those who have come before them to fulfill their American Dream of Homeownership, sometimes buying a home is not necessarily the right move. Does this mean renters are second class citizens?...Losers vs. winners?...Less smart than homeowners are? Of course not!

 

When should someone consider renting instead of buying?

 

  • When job security is in question because hours are being cut back or layoffs are taking place at your company
  • When your savings has less than 3-4 months in reserves in the event of a financial emergency
  • When the cost to rent the home that meets your needs/wants is within your means, but buying it is not
  • When you do not plan to remain in your home long enough to build enough equity to cover selling expenses, and keeping the home as an investment property is not part of your plan
  • When you need to sell another home to avoid a financial burden carrying expenses for two properties

 

Magic 8 Ball, What's Inside A Magic 8 Ball? 4746 by dwof photo courtesy of flickr.comAlthough there are many reasons to buy a home right now, sometimes now is NOT the right time to buy. Deciding to wait might make the most sense in your circumstances. And this is OKAY!

 

See you out there!

Karen Cooper - OR/CA Mortgage Consultants - www.Quality4Loans

 

Posted by

Karen Cooper Southern Oregon|California Mortgage ConsultantKaren Cooper - Home Lending Advisor Nationwide

               NMLS #223305

 

Comments (6)

Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495

Karen,

The best decisions are not made in the moment, and this is a balanced, useful post.  Good job!

Mike in Tucson

Mar 18, 2009 06:11 PM
Sandy McAlpine
RE/MAX EXECUTIVE - Cornelius, NC
Search Lake Norman Homes For Sale - Lake Norman NC

Karen, if a buyer has at least 10% down and there are such good deals out there, I think now is a great time to buy. I think buyers should just be sensible when choosing a home not beyond their means. You can buy a home with a much lower payment than renting and get a tax break!

Mar 19, 2009 01:20 AM
Karen Cooper
Karen Cooper | Sr Mortgage Loan Originator ! NMLS # 223305 | First Federal Bank of Florida, Ocala, FL - The Villages, FL
Helping Homeowners w/Home Loans in 27 US States

Hi Mike - Spoken like a true ponderer :-). Thank you!

Hi Sandy - Here in Southern Oregon, if a buyer wants to target certain neighborhoods to live in, for views, schools, etc., even with the price depreciation we've been seeing, it is often cheaper to rent(at $1,200-1,500), vs buy (at $300,000+). Other neightborhoods, what you state works out just right. So, do they move to a different area? Some choose not to do so.

Thank you both for your comments.

Mar 19, 2009 01:58 AM
Tom Boos
Sine & Monaghan Realtors, Real Living - Grosse Pointe Farms, MI
Providing the very best of service to Sellers and

Sometimes it's difficult to advise prospective buyers that now is not the time for them to buy;  Especially when there are so many great deals to be had.  During these difficult times, young, first-time buyers really have to have their "house in order" before embarking upon a home purchase.

Mar 20, 2009 03:10 AM
Karen Cooper
Karen Cooper | Sr Mortgage Loan Originator ! NMLS # 223305 | First Federal Bank of Florida, Ocala, FL - The Villages, FL
Helping Homeowners w/Home Loans in 27 US States

Hi Tom - Over the past decade, buyers expected to be told how they could buy a home, never that they couldn't, although I spent many many hours explaining the ramifications of loan products that buyers wanted to use that really were not designed for the purpose the buyers wanted to use them for. In many ways, I find it is a relief to have gotten back to basics again. Thank you for stopping by.

Mar 30, 2009 03:22 PM
Kate Bourland
Marketing with Kate - Redding, CA
Onlilne Marketing Mobile Marketing

The costs of home ownership are more than just the price of the house and the mortgage payment.  Having a good grip on finances is a necessity when buying a home.  Great post, it's not right for everyone.

Mar 31, 2009 04:55 PM