First Time Home Buyers in Greater Cincinnati-part 2
August 20th, 2009 categories: For Buyers
Owning a piece of real estate is part of the American dream.
In part 1 of “First Time Home Buyers in Cincinnati”, there were some questions first time buyers of real estate should be asking themselves. For the first time in my lifetime (no snarky remarks -please) critics are challenging the concept of home ownership as part of the American dream. The Wall Street Journal published an article “The New American Dream: Renting” by Thomas J. Surge challenging the ideas about home ownership. Today potential buyers spend hours and hours on the internet looking at homes and condos with the intent of eventually making a purchase.
So today’s blog will address the first set of questions-
- Why are you buying a home or condo?
- Can you really afford to purchase?
- Did you sit down with a lend and get preapproved?
#1- are you really ready to purchase or are you feeling pressured because family and friends think you are wasting money on rent? It is amazing how many buyers are unsure why they are house hunting. Take some time to think through the motivation for buying real estate -long before you start the process.
#2- and # 3 are related-somewhat. Many buyers “qualify” for a loan but really cannot afford to purchase. The lifestyle change required to meet monthly mortgage payments (principal+interest) taxes, insurance, utilities and upkeep is not for everybody. Buyers need to review personal budgets and do some soul searching. The current $8,000. tax credit has been the deal maker for many buyers- allowing them to stay within budget and maintain their lifestyles.
#3- buyers often call me wanting to bolt out the door and look at a home in West Chester or Cincinnati or a condo in Mason. The first question I ask is whether they have contacted a lender to obtain a preapproval? The answer is usually no- and they don’t want to talk to a lender until they find a property. Talk about taking the backwards approach to real estate- go look at house, fall in love with it -then find out you cannot qualify for a mortgage to buy it. Get smart and get preapproved. As the housing market picks up, great properties are selling quickly- and unqualified buyers don’t have a chance of bidding because no seller in their right mind would tie their property up for a buyer without money.
First time home buyers have a lot of opportunities available to them in today’s real estate market- take the time to answer the questions before going to the next step.
Stay tuned for part 3.
Questions or comments- call or email.
Related Articles: What Buyers and Sellers Should Know; FHA-Common Questions; About.com; Tax Credit
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