Article Score0

My wife and i are want to buy a house this year. We saw a house that we both like, but we are apprehensive about buying the house in this type of environment. We have been seeing reports that housing prices are due to continue to drop. We have been looking aggressively since June and are ready to buy this house, but at the same time we think we should wait a couple of months as prices are projected to fall. What should we do? We are looking in Los Angeles/Long Beach area.

5 Thoughts on Should I purchase a home now or wait a few months into the fall?
  1. Reply
    Caveat Emptor
    April 7, 2013 at 12:46 am

    It’s impossible to absolutely time market bottoms, especially as real estate markets are local. Ask yourself WHY you want to buy a house at all. Either you are “ready to buy” or you’re not.

  2. Reply
    April 7, 2013 at 1:43 am

    You buy real estate and wait, you don’t wait to buy real estate. Certain parts of Long Beach should be going back up.

    Buying a house is a step by step process, this is the first step you should take in order to purchase a house. The rest of the steps will fall in place, no matter the type of property you are purchasing.

    In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, which you can find one in your local telephone book.

    Make sure this mortgage broker or mortgage banker is able to do government loans such as FHA and VA loans if you qualify for one.

    He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores. These credit scores will determine your interest rate.

    The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase.

    When you speak with the mortgage broker you will need the following documents to complete the loan application, there will be others, but this will get you started.

    #1 One month of pay stubs for each person that will be on the mortgage.

    #2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.

    #3 Two years of federal income tax along with the W-2 that match.

    Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home. In this pre-approval letter will be the amount of house you are qualified to purchased.

    Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.

    Now make sure before you get your pre-approval you and your mortgage broker go over all your options as to the mortgage programs you qualify for, the interest rate, monthly payments.

    If you are getting a FHA, fixed rate, two loans to eliminate PMI like an 80/20 or one loan, if you are qualified for and approved for a 100% loan.

    You should select the loan that best suit your financial condition at the time. That could be an adjustable rate loan. It could be a fixed rate loan for 5 or 10 years and then adjust. Some adjustable rate mortgages only adjust once.

    Make sure your mortgage broker explain all your options so you may make an intelligent decision.

    What might be good for one person might not be good for you, in other words just because your friends and all your real estate buddies are telling you about the great fixed rate they got, your financial situation might call for something else.

    So select the best option for you and your financial situation.

    You should also get a Good Faith Estimate (GFE) which will indicate the cost you will have to pay for getting this loan. It will also indicate the amount of your down payment.

    Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign.

    Your mortgage broker will now order an appraisal to show proof of the property value.

    The mortgage broker might ask for additional information or documentation, don’t get all up tight this is normal, just supply the information or find the documents needed.

    After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.

    Before signing any loan docs make sure they say exactly what you and your mortgage broker went over when you decided on what mortgage program was best for you.

    I hope this has been of some benefit to you, good luck

    “FIGHT ON”

  3. Reply
    April 7, 2013 at 2:13 am

    If you wait and house prices go down but interest rates go up you could cost yourself a lot.

    If the house is priced at $ 300,000 and you can get 4.5% now then your P&I for 30 years would be about $ 1520. If you wait and are correct and prices go down a huge amount, maybe an additional 5%, then your P&I at 4.5% for 30 years would go down less than $ 80. But if the prices stay the same and the rate for a thirty year mortgage goes up to 5.5% then your payment would go up about $ 180 a month!

    If the price goes down by 5% and the mortgage rates go up to 5.5% then your P&I would still be about $ 100 a month higher than now.

    Google mortgage amortization and play around with the numbers. It is very easy to wait to long. If you have found a house you really like in a neighborhood you really like (location is very important) and you can afford it- then I would take advantage of the low prices and incredible interest rates and buy now- instead of slapping your forehead later.

  4. Reply
    April 7, 2013 at 2:19 am

    There is no way for you to time the bottom of the market. If you are ready to buy, you should pull the trigger and buy it. A few months are not going to make a significant enough difference in the value of your home to worry about.

  5. Reply
    April 7, 2013 at 3:12 am

    Why would you buy now when the home price is nowhere near a bottom? Factor in the banks are holding millions of homes not listed on the market that have been foreclosed on to help slow a complete collapse in home prices. Factor in that every 90 seconds a home in the USA is foreclosed on. Factor in that millions of ARMS are set to adjust for the next few years causing millions and millions of home owners to go into foreclosure. Factor in the program Obama made to force banks to readjust struggling home owners into a new payment plan is now flopping causing the homes to once again go into foreclosure. Market is collapsing and real estate agents wont tell you this as they make their living on you buying, mainstream media will not tell you this, nor will the messaged government numbers, but I have and the information is online for you to do your own research.

    Now is not the time to buy when you can buy this same home in a year or two for 50% less or more then the current asking price.

    Leave a reply

    Register New Account
    Reset Password