Eugene Loan Guy

This video about home buying and waiting has always spoken to me saying that no matter what is happening on Main Street or Wall Street, as a qualified borrower, you are in a position of strength. This is true regardless of the market, real estate, auto, boat or furniture. Determining your buyer strength is the question and I want to explore that.

So, what is “buyer’s strength?” It isn’t found in the dictionary and so far, not even in Wikipedia. Maybe that will change. It is, simply, your ability to purchase in today’s market. Whether it be by cash or by approval for a loan, your purchasing power is determined through your ability to put the purchase price together. Cash buyers always have more “buyer’s strength,” however, solid credit buyers also compete well. I believe there should be more buyers in today’s market, but many are waiting to see what happens. Fence sitting will only give you splinters. Indecision is a huge marker in the graveyard of good intentions. Now, rates appear to be going up, have you waited too long?

How do you determine your “buyer’s strength?” Yesterday I was contacted by a fellow blogger on one of the other sites that I author. She and her boyfriend are getting ready to buy a home and they have been looking for a mortgage calculator that would take into account their credit score when helping them calculate the amount that they can borrow. Good idea, but nonexistent. Credit scores are considered in the complete picture when being underwritten by one of the automated systems. A higher credit score can qualify you for a higher loan amount but the only way to find out is to contact a reputable loan officer, like Fred Chamberlin,  and have them put the numbers together.

When qualifying for a home, consider how much money you make each and every month. How long have you been on your current job as well as how long you have been in the same industry? Have you been paying rent or a mortgage for the last 24 months? What is your month fixed outgo to car, credit card, and loan payments? Once all of these facts are gathered, this will truly determine your “buyer’s strength.” Talk to a mortgage professional like Fred to find out where your “buyer’s strength” is. This isn’t something that can be on your own, use a professional.

This guest blog is by my friend and mentor Danny Thornton of Positive Real Estate Professionals. Danny gives a lot of good advice and I highly recommend checking out PREP and his other blogs, including The Mortgage and More Blog.

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