Is this still a good time to buy a house (Texas)???
With all of the mortgage and foreclosure stuff going on… is it still a excellent time to buy a house? I know that we should qualify but I called my bank (BOA) and they said that they are more strict about whom and how they lend. How long do you reckon it will take before this mess will clear up? My husband and I are graduating from college in December and will be looking to buy a house around that time. We have excellent credit, but not that much for a down payment due to college expenses.. Maybe 5K. We want to spend 135K for a house… Our income will be at least 85K… Would we qualify for a first time buyers program…. or maybe a discount for being recent college graduates?? Are there any discounts for Registered Nurses??? Thanks in advance!!
Foreclosure Angel: Weirder Buys Foreclosed House at Auction and Gave it back to Owner!
December 24th, 2009 at 7:10 pm
Yes still buy a house – this whole thing is really getting blown out of proportion. You need to have 10-20% down – a FICO score of 650 or better and the payment you are considering should be 25% or less of your take home pay on a 30 year fixed mortgage.
This is to protect you in the event things change in the future – you can still afford your house – or sell it and not lose it to the bank.
All the current problems is because the banks were lending to people (interest only – 1 year arms – balloon payment loans) so when interest rates rose they could not afford the payments and housing prices went down (like who didn’t see that happening) so they couldn’t refinance because they owed more than the house was worth.
Just don’t be stupid and buy something you cannot afford. Housing is lower now than it was – just buy something that you are going to stay in for 5 years or more.
December 24th, 2009 at 8:08 pm
You don’t need to have a down payment to get the house if your credit is decent and the plethora of people losing their homes just means there is more inventory to choose from and more motivated sellers. It shouldn’t be that hard to get the mortgage-don’t believe the hype. You probably make too much to qualify for a state first-time home buyer program, but it depends on your region. From what you wrote you’re in excellent shape to get a home.
December 24th, 2009 at 8:34 pm
Under your circumstances I suggest you approach mortgage lenders as if you were dealing from a position of strength.
You could easily get a excellent rate at $150-$175K, feel better about it later, at the cost of few extra tears.
As far as Texas is concerned, I’d reckon one should be more concerned about the weather right now.
December 24th, 2009 at 8:41 pm
By all means, buy a house!
As of right now, the first time homebuyer programs (up to 100% financing) are still available and the credit standards have not been tightened. Rates for these programs are still very low – 6.5% or so for a 30 year fixed rate.
The mortgage crisis deals mainly with subprime loans, stated income/no doc loans, jumbo loans (over $417k), and 2nd mortgages. If you are not doing one of these products, you will be fine.
Ignore what the person above me wrote about having 20% down – that is not the case. The programs are there for first time homebuyers, and will continue to be available, as these loans are bought by FannieMae or FreddieMac, not Wall Street.
December 24th, 2009 at 9:39 pm
nope! simple answer
December 24th, 2009 at 10:21 pm
There could not be a better time to buy a house than right now. It is a buyer’s market and sellers are desperate to sell -
Mortgage Wise – The media has a way of putting their own spin on things. The best type of mortgage to get right now is a FHA loan. So go for it- BUY AWAY
You guys sound like Fantastic candidates for an FHA loan with a 1st time buyers down payment assistant program. Interview some different lenders. Tell them what you are looking for. Question them ALL tons of questions and DON’T let anyone PRE-Qualify you until you have chose on the lender you want to go with.
Go Luck.
December 24th, 2009 at 11:18 pm
Again, you’ve still got some more specific thinking to do.
Where in Texas? Texas is the second largest state. If it were to become its own country it would be the 6th largest country in the world!
What neighborhood in that city?
Are you plotting on having kids in the next 5 years? (Schools)
Would you be open to a Town or Condo?
Do you want a yard? Texas is very hot, so if you have a lawn to keep up, you better make sure you can take the heat. =)
Is the neighborhood you want to go into in a flood plain? (Huge issue in Houston thanks to Tropical Storm Allison and Hurricane Rita)
Are you used to knowing your neighbors? For most of Texas you go from your AC House, to your AC car, to you AC office, back to your car, back to home. Vary small time is spent out doors “chatting” with your neighbors.
Can you get insurance in that area? For example, there are some counties in Texas where companies like State Farm won’t write new policies.
But yes, buying a home is a excellent thought. I might suggest thought that you wait a year in a small apartment and place money away for a larger down payment. Remember: Every dollar you place into your down payment, you’ll immediately get back in equity!