Yes, it is a buyers market these days, but a recession can make finding a home and getting a loan a little trickier. Home inventories are down, but so are prices and mortgage rates. Navigating the perks and pitfalls of buying a home in these financially uncertain times can take a little finesse.
While nationwide the median home price is down 16 percent over the last year, that is certainly not the case in Austin. Prices are down a few percentage points from where they were a year ago and houses do sit a little longer on the market. Historically low mortgage rates and other incentives, like the $8,000 tax credit for first-time home buyers, make this an optimal time to buy a home.
A good place to start is to get your financial house in order, so to speak. How much house can you afford? To be more direct: How much of a monthly mortgage payment can you reasonably afford on your current household income? Determining the price range of a house needs to include how much money you have available for a down payment. An applicant with good credit and cash available for a down payment can get an excellent mortgage rate. It is important to shop around for mortgage rates and lenders. Getting pre-approval for a home loan means a prospective buyer can start the house hunt with knowledge of their limits and confidence about getting a mortgage.
Now it's time to make a list of requirements for a new home. Two stories or one? How many bedrooms? Is a new kitchen important or is a certain school area a must? It's important to have list of basic requirements for a new home. Knowing the price range and having a general area of interest helps to narrow the focus when searching for a new home.
A good place to start the house hunt is looking on the computer. Using the Yahoo! real estate section or realtors.com can help you figure out what's on the market in your price range, and it can also be a preliminary step in finding a realtor. Computer research is a terrific tool for house hunting, but keep in mind seeing a house in person might be a different experience.
The next step is finding a real estate agent. Asking friends and family for recommendations is a good place to start. Doing research on the computer and looking at newspaper real estate ads are also good sources to begin with. Don't be afraid to ask questions and don't feel pressured to settle on the first agent you meet. It is important that you feel comfortable with your real estate agent and feel that he or she is really going to listen to you.
A recession means there are fewer homes on the market, but it also means that sellers are serious about making a sale. Choosing an experienced real estate agent will help you make the most out of your search. Be prepared to spend some time and don't get discouraged if the house of your dreams doesn't materialize on your first day of looking. Keep a notebook handy to jot down notes, keep your list of requirements in mind and be willing to be flexible. But most of all, be assured that you are buying a house at a great time.
This article was written by: Ki Gray and posted on Active Rain
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