Why Now is a Good Time To Buy A Home

Ted Schirm of Met Life Home Loans offers these reasons on why now may calculatorsClipartbe a great time to move forward with a home purchase.

Experts are starting to say that we could be entering the bottom of the housing market as a whole.  A good first step.  I have been hearing of activity in the suburbs. Most of the movement has been in the first time home buyer segment. Nothing documented but a buzz among my co-workers.

What we have right now is a good version of a”Perfect Storm”…there are several factors in place that will help people to buy homes.

RATES ARE STILL HISTORICALLY LOW – While we have not gone back to the 4% range we are still well below 6%.
$8000 TAX INCENTIVE FOR FIRST TIME HOME BUYERS – This has been creating quite a buzz amongst first time home buyers. There are income restrictions with this program but still a good conversation starter.
CONFORMING LOAN LIMITS ARE AT $729,000 – Mortgage money is available in Hudson County at great rates for loan amounts up to $729,000 (single family property – multi unit property loan limits are much higher.)  This is only for the remainder of 2009.
MORTGAGE MONEY IS STILL AVAILABLE – MetLife is in the business to write mortgages.  We have the ability to lend up to $2.5million for a transaction.  Mortgages are available for borrowers who are qualified.  Normal lending guidelines have not changed, what has changed is the elimination of the no document loans, stated income & asset loans and other similar programs.
FHA – For borrower who is unable to put down 20% there is this under appreciated government program.  There is PMI involved but that is better than not being able to get a home.  FHA Condo Spot approvals are not impossible.  We have had a number of closings in the area with no problems.
JUMBO LENDING IS NOT DEAD – There are still outlets for mortgages above $729,000.  As was mentioned above MetLife has the ability to write mortgages up to $2.5million.  This is not only using portfolio money but we have a list of private investors who we use to find the best loan structure for each buyer.

With all of these options available to buyers now is the time for them to buy.  Waiting for a bottom for the housing market may sound like a great idea but if rates go up or if some of these temporary programs are discontinued they may wind up paying more in the long run.

SOME OF THE MOST IMPORTANT THINGS TO CONSIDER

Home selection is great.

Prices and affordability are fantastic.

Negotiations are always possible.

To take advantage of a buyers market……you  HAVE TO BUY!

Perfect storm?  I don’t know, but these sound pretty good to me!

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