Overcoming Obstacles to Home Ownership
Whatever the current trend in the real estate market, the fact is, nine out of ten consumers believe that buying a home in today’s market remains a good deal according to the National Association of Realtors’ housing pulse.
Potential buyers today believe that there may be more hurdles to overcome in their quest of homeownership, but it is well worth the effort. According to the survey, one such potential hurdle is the complexities involved in obtaining mortgage approval. The days of “no questions asked approval” are gone so it is important for potential home buyers to get things in order, and think ahead, before they are ready to buy their new home. A few simple steps can get the wheels in motion.
Mortgage lenders will want to look at an applicant’s life, and their risk, before they lend. Be sure to put your best foot forward. Applicants should have a stable job history and be in a stable job when they apply. Pay bills on time. Use, but do not abuse credit cards. Pay them off on time and ahead of schedule if able. Avoid paying only the minimum. Remember, mortgage approval is not the same as closing. A lender may check credit scores more than once. Resist the temptation to buy those big ticket items in anticipation of the new home till after closing. While you may want that new living room furniture, or that new truck to move it all in, hold off until the deal is cinched. A lender may look at that purchase and decide you are not a good risk after all. The second check is becoming increasingly common since the credit market crash.
Exhaust available possibilities. If you are a veteran, look into a VA loan. There are many opportunities out there for first time home buyers through corporations like Fanny Mae. Do not expect anyone to come up with every possibility for you. Do your research. Scour the internet, library and book store for information that may be helpful to you. It is extra effort that can pay off huge dividends in the end.
Save for a down payment. The availability of funds can greatly increase the chances of getting a loan. Remember the old adage, “It takes money to get money.” Eight out of ten consumers feel that having money for a down payment is their biggest obstacle in getting a new home. There is always more to work with than we believe if we are willing to sacrifice, if even for a time. Look at every place your money goes and see if you can spend less. Is more affordable car insurance a possibility? How about giving up the premium channels?
When it comes to buying, or selling a home in today’s California real estate market, consumer caution does not negate consumer optimism. With the right resources and armed with information, consumers are confident. The opportunities are there and easily found when parties are utilizing every creative source. Once the initial obstacles are over come, the market is ripe. Market concerns aside, the objective for the seller is to sell, and the objective of the buyer is to buy. And both buyers and sellers are out there. All that is left is for sellers to get the word out and buyers to connect. At PlanOpen.com, we are here to help California home buyers and sellers make the most of every opportunity. With our innovative tools, buyers can manage their search and maximize their opportunities by viewing as many homes as possible, online, at an open house or privately. Sellers have the advantage of connecting personally with potential clients and providing a viewing to interested parties. Though there may be some hurdles to maneuver in the quest of owning a home, finding the right one does not have to be one. Owning a home in California continues to be a good, long-term investment.
