Matters of Interest

Nothing.

Well, realistically, if you have steady income, decent credit (not perfect is okay), and some savings (even no savings), there is plenty of attractive financing available for you.

Rarely will the market not lend on reasonable risk factors.

Declining Property Values

Now this hurts if you are considering selling or refinancing. This is the factor that is locking people into their current home.

The return of the Short Sale (selling for less than the actual mortgage balance, with the bank's approval- as they are taking a loss- reserved for those who have fallen behind on their mortgage payments) has brought out the worst in some. There are instances of owners intentionally allowing their loans to go into arrears (late payments), even though they could make their payments. They simply have elected not to do so.

This is a flawed strategy, and unethical at best. Sorry.

So if you are in there- stay there- unless your work or family obligations require a move, and you simply cannot afford to maintain the home.

Trouble Ahead

Often the sale of a home results in a windfall of sorts during the typical real estate market. The appreciation of the home and the forced savings plan (zero rate of return) payments to principal result in cash at closing that is typically used for that next home purchase...and to pay off the other debt that may have accumulated since the last purchase.

Beware. Keep a handle on that credit card and installment debt (which statistics say most are not), because with home values haven fallen, there may not be that "get out of jail free card" coming with the next sale.

Nonetheless (finally to that good news), it is a great time to buy or build! Home values have dropped into a real value zone, and builders need to clear inventory, and...well, they are builders...they need to build some homes.

If you have questions about budgeting, building better credit, or buying a home, contact us for a free consultation.

Experience You Can Trust, For Your Best Interest...

888.795.2470 or email us.