Home buying in a buyer’s residential real estate market is an important decision to make. There are immense choices in new home, pre-existing home, and foreclosure inventory. Even though housing inventory is high, these 5 tips can help you in your home buying journey:
1. Don’t Time the Market
A lot of potential home buyers are waiting on the sidelines for home prices to drop further. However, experts predict that residential real estate still hasn’t bottomed out yet, but still can’t predict when that will be. Basically, no one can predict when real estate prices will trough; maybe the prices have already bottomed out.
The real estate market can’t be timed any more than the stock market. Some “experts” think they can time the market but in reality no one can. Majority of the times, market timers end up paying more because they wait too long and end up buying real estate on the upswing. If you like a house, don’t wait, make an offer right away; waiting for lower prices may cost you the house.
2. Low Mortgage Rates
The longer wait may end up costing you more in the long-term. Home loan mortgage financing is on the rise, as well as the credit crunch may lead to further inaccessibility to loans. Hence, it is a good idea to lock in low mortgage rates right now before interest rates rise further.
3. Low Interest Rates on Jumbo Loans
Before, jumbo loan mortgages were accompanied by higher interest rates. But due recent Congressional legislative actions in 2008, jumbo loans are eligible for lower interest rates. This is a temporary measure.
4. Avoid Exotic Mortgages
One of the reasons the global financial crisis is in such a toxic state is due to the exotically repackaged mortgages, as well as the subprime mortgages. Additionally, toxic home loans, such as interest only mortgages, adjustable rate mortgages, balloon mortgages, etc. have led to further foreclosures. Get fixed rate mortgages and avoid the rest.
5. Get a Good Real Estate Agent
A professional real estate agent can bring immense benefits to your home buying experience. An estate agent can offer you guidance in home inspections, home loans, home insurance, and other facets of home buying.