Eugene Loan Guy

Oftentimes people don’t do something until they have a sense of urgency. This carries over to purchasing a home too, not just for experienced home owners but also for first time home owners. In a market such as we have with mortgage interest rates dropping and home prices falling, they think that now is the time to sit on the sidelines and wait for the great interest rate and for the perfect home you want to get to just the right price before you make your move. Sound familiar?

So, let’s talk about urgency and why now may be the time to develop your sense of urgency. If you are a first time home buyer and are planning on taking advantage of the $7,500 tax credit available for purchasing your first home, that is only available for homes purchased before July 1 of this year, unless Congress decides to extend the deadline. This means the purchase must be complete, not just in the offer and acceptance stage. Now, since you haven’t bought a home before, this is not something that happens overnight. Expect to spend several weeks looking and then about a month closing the loan. All in all, this could take a lot of the 5.74 months left in the program.

Next, how about the rate? Well, you can’t get an interest rate until you find the home you want to buy. So, if you are waiting for the right rate, how are you going to get that “right” rate when you don’t have a home to buy when that “right” rate comes along? We never know we have hit the bottom until we are past it on the way back up. Will you be waiting on the sidelines when rates go up to 6% or 7% or 8%?

Finding just the right home at just the right price is next. Everyone I am talking to in the industry in this area say the same thing. Homes that are priced properly and in good to great condition are selling fast. The ones that are dragging are the ones that are overpriced or in poor condition. Even the banks that are holding foreclosures are beginning to react quicker to offers. Short Sales are still taking a huge amount of time but quality homes at a reasonable price are selling. Will you miss your perfect home because you were waiting for the bottom?

Is it time for you to develop a sense of urgency? I don’t know. I do know that mortgage rates are extremely low. I do know that homes are selling for about what they were in 2006. I do know that lenders are starting to back up with loan processing. I do know that properly priced homes are getting more than one offer. And, lastly, I know that owning a home is something that most people look forward to and save toward. I am here to help with the mortgage process. I specialize in FHA/VA/USDA loans for first time home buyers. Call me and let’s see if it is the right time for you to develop a sense of urgency.

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