Is now a good time to buy a home?

With the current mortgage and foreclosure crisis, is right now a good time to buy a home?

It seems this is a question many people are asking. And many sources point to this being the case – the Fed has once again lowered interest rates, there is possibility of government backed bailouts for homeowners and home prices are falling in most areas. I’ve even seen this in my county where typically home values have risen more than 6% annually (and sometimes 6% every six months) for several years now.

On average, home prices have dropped 11% recently. This is quite huge. Coupled with the current 7-8% mortgage rate for the average borrower (5-6% for those with excellent credit), and the amount of house you can buy for the money has risen signifigantly.

It could definitely be a good time to buy a house. CNN Money has also mentioned it’s prime time for vacation home or second home shopping as well. There are some real bargains to be had.

However, this doesn’t mean one should go rush right out and buy the first thing they like – now is the time to do “due diligence.” Shop slow, shop around and watch out for any unfair practices in the lending industry.

I’ve heard it mentioned several times lately that some lenders are not providing Truth in Lending documents within the 3-day requirement. When questioned, borrowers have been told it will come with the loan documents at closing. This is totally wrong. The lender has 3 days from the date of application to provide the TIL to borrowers. Should this happen to you, kindly ask the lender if it was just misplaced or overlooked and to please send you another one. If they make excuses, they’re trying to hide something and you would be wise to demand it be disclosed immediately. Be fair about it, but be firm.

You know, it’s interesting to note that many of todays real estate millionaires got started back in the 80’s during the mortgage meltdown. Play right and perhaps you could be one of the next set of RE millionaires in 20 years. You can bet we are on the lookout for good deals and will snatch up any we see.

~ Annie