Why Not Buy A Home Today

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If you are trying to qualify for one of the many mortgage home loans out there. And looking to buy a home whether it be in the Santa Maria real estate market or not but still on the fence. Here are a few tips and things to think about before you decide whether to buy a home or not..

Since 2007, it has been an interesting last few years to say the least. Housing values have plumetted ever since the bubble in the real estate market popped.Has created several unique things to happen. Such as this is currently the first time in American real estate history that real estate prices have dropped along with interest rates.So here are few tips that you should remember while in the market shopping for a home.


1)      You Are Not The Only Buyer

Even though there are less and less people that can actually qualify for a home due to new lending standards tightening up.The homes that do hit the market will have multiple offers if they are priced right and and are at a discount.Trying to low ball the price even when it is a truly good offer would only result in someone else’s offer being accepted over yours.If the house you want has a good price, you can expect it to have multiple offers so you would have to be aggressive to get it.Many banks are using the tactic of under pricing many homes just to et the attention of excited buyers who rush to buy them and in the end,these homes usually sell for a lot more than the listed price.


2)      Its Not That Easy To Get A Loan Anymore.

If you have not bought a home in the last several years or refinanced a home loan you will find out that things are very different.The one thing you would not want to do is get bad information from friends and family about how and what loan they were able to get when they last got a loan before 07.Now you actually need to prove that you can afford the home and this is an example for the tremendous change that has taken place in the past few years.The bank will request ranscripts from the IRS to match what you submit to the bank for income documentation as well as what you report to the IRS to verify yout income.To make sure that you are not taking on any new debt, you will be questioned on any changes or credit charges.Or debt that may not have been reported in your credit report.You may be asked to resubmit all your information by the bank even if you have already submitted it.

3)      Be Patient

If you are trying to get one of the nicest homes that happen to be one of the best deals on the market.YOU HAVE COMPETITION and there is a lot of it out there so your offer may not be accepted the first time and it may take several offers and even a few months to get you into a home.

4)      Be Prepared For The Appraisal

Appraisals in today’s market are not as aggressive as they once were that means that many times the appraised value comes in lower than the agreed price.For this two things must happen.You the buyer have to being more money to the table or the price needs to be reduced to the appraised value, these are the two options available.  Which for many buyers can be tough especially if you are talking about $1,000.00’s of dolars. The fact that some can be stubborn is known by most banks. They might not like to lower their price and then you would have to walk away from the house that you wanted. It will not benefit you but only the next buyer even if the bank eventually lowers its rate.


5)      Buying A Short Sale.

Currently, a lot of homes on the market and in many other markets end up as either foreclosures or short sales. This holds very true for the majority of homes in Santa Maria that are for sale. The higher end range of homes for sale usually has a few transactions.But remember that a short sale can take months to close.Even before the short sale can happen, the bank holding the mortgage has to approve the process.The seller of the home cannot do anything until the bank agrees to the short sale though he is the current home owner who wishes to sell the home to you.Entering the short sale process would require a lot of patience on your part and the awareness that it would take months for the transaction to close.Some agents steer their clients away from short sales because they take longer to close and hence it would take longer for them to get paid.Not to mention that some clients really can’t wait that long until a short sale closes.  But some short sales can take as little as a month but others can take as long as a year.But sometimes the situation could be EXACTLY WHAT YOU WERE LOOKING FOR with completely no competition for that home. You, your agent or the homeowner cannot control the length of duration for the short sale. Sometimes it does not even matter who the bank is.

The actual fact is that interest rates are at record lows while real estate prices are at current lows. Why wouldn’t you try to buy a home.

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