Home Buying Today

Are you looking buy a new home due to a new job, a transfer or just because you are seeking a better neighborhood? If you are someone who has been keeping up on real estate news, the latest housing headlines are far from encouraging: Foreclosures are up, home prices are down and new-home sales are at record lows. All this dismal news has many buyers sitting on the sidelines, afraid to make a move. But, economists say, waiting for the bottom may not be the smartest strategy.

First, there’s no agreement on when the U.S. real-estate market will officially touch bottom. If you believe the National Association of Realtors, it will happen later this year. Investment bank Merrill Lynch is much more pessimistic, predicting that U.S. home prices will drop another 15% this year and 10% in 2009, with perhaps even more depreciation in 2010. But even with this knowledge, evaluating your own personal situation, including where you live, how long you have owned your current home and what you plan to do with your new home, all are deciding factors on whether you should buy right now or wait a little longer.

Here Are Five Reasons To Buy Now:

1. Prices in the neighborhood you are interested in are relatively stable. Either they are holding their own or increasing, or the pace of decline is slowing significantly. If you have to move and don’t like apartments, the small penalty you pay for missing the bottom may not mean much.

2. You plan to stay in the home for more than five years. If you can stick it out that long before selling, economists say you’ll probably ride out any downturn and come out ahead on price.

3. Your rent rivals a mortgage payment. If you can afford to buy, it can give you one bonus that renting can’t: the mortgage-interest deduction on your taxes.

4. You’ve found the right house in the right area for you. The schools are great. You love the area and know it would be hard to find another house like the one you have your eye on. In a better market, you would most likely have much more competition for that home.

5. You’ve built equity in your house and are moving to a place where homes are cheaper. In your new market, your money will go a lot further.

Here Are Five Reasons To Hold Off:

1. You’ve lived in your house less than two years. Chances are you haven’t had enough time to accumulate equity in your home. Indeed, you may have negative equity, if you live in many areas such as California, Florida, Arizona or Nevada.

2. Your job security is uncertain. If your company or business is in distress, it’s probably better to stay put until the smoke clears.

3. You don’t plan to stay in your next house at least five years. While it’s not important to buy at the exact bottom of the market, it is important to stay long enough to ride it out completely.

4. You don’t have good credit or a decent down payment. Do you have a job and income you can document? As a result of the subprime lending crisis, lenders are much more careful about whom they’re giving their money to.

5. You have an existing home to sell in a neighborhood where prices are dropping precipitously or where the number of foreclosures is spiking. In this climate, you’re probably better off waiting out the storm.

The United States Department of Housing and Urban Development (HUD) is the best place to find information on housing assistance programs for single moms in Chicago or any other US city.

Public housing, subsidized housing, and housing vouchers are all covered by HUD. This federally funded program is a wonderful resource for single mother housing assistance needs for rentals and opportunities for home ownership. Local authorities and agencies in the Chicago area and other metropolitan cities can help you find affordable housing whether you currently are paying too much or just need a start with finding housing that meets your needs.

First time home buyers’ assistance is also available through HUD. Maybe you have been renting for a while and are thinking of buying a home. There are many options available for the single mother home buyer. HUD has many first time home buyers’ programs. There are HUD homes available at reduced prices, information on predatory lending and home buyers’ assistance counseling. This is the best place to start and become fully informed before becoming a potential home buyer.

Once you have purchased a home the next question that arises may be how you can maintain it. With the HUD home repair assistance program, not only will you become knowledgeable about home repairs but also be eligible for financial support. Whether you got the house after a divorce or managed to buy one after becoming a single mother, opportunities for help are available through HUD. Homes need repairs as they get older. Single mother housing assistance programs at HUD takes this into account by offering loans at reduced interest rates for home repair.

Other situations such as being a homeless single mother are also covered by HUD. If you are in the position where you are homeless, the HUD program provides housing counseling programs and local homeless assistance programs. Check out the HUD website for information on these valuable resources.

If you are evicted or don’t have access to a personal computer at home, go to a local library and get a library card. Many libraries now allow free Internet access on library personal computers with just a library card. Getting connected online is one of the best things a single mother can do to find housing assistance programs or agencies with that information.

And most importantly don’t forget that HUD not only offers you an opportunity to get affordable housing, but also has programs that will help you complete high school and get job training. The US Department of Housing and Urban Development is definitely worth checking out.

Buying a home is a big step in your life and should be a very exciting time. Unfortunately, many individuals rush into buying a home with out considering the implications is has on their future. If you’re considering making the move to own it’s important you weigh all the options, and consider what if anything will affect the feasibility of you’re purchase. If this is you’re first time in the housing market consider the following before you make your big move.

1. Get Your Finances in Order 

   Have a lot of debt racked up? If thats the case, you may want to play catch up before you even think about buying a home. Bad credit is bad news for those who want a buy a new home. In most cases you will need to get a mortgage before you buy and this means your credit will be under scrutiny. Start getting acquainted with your credit score and begin fix the problems well before you apply for a mortgage.

    

2. Think about the Future 

   If you have a job or other obligation that may require you to move or travel for extended periods of time you want to think twice about rushing into the housing market. Buying a house is a commitment that will tie you down to a particular location for at least a few years. It’s not easy or economically feasible to pack up and sell your home at the drop of a hat.

    

3. Educate Your Self 

   As a first time home buyer one of the worst thing you can do is go into the market unprepared. Familiarizing your self with words and phrases that are used will allow you to better comprehend the market. A better understanding of the home buying process will enable you to make a well educated decision when it comes to you’re final purchase. Entering the market blindly can turn you’re home buying dreams into a nightmare.

    

4. Be Rational  

   We all want to live in the home of our dreams. Unfortunately, like most things in life, the housing market must be approached from the bottom up? Renting is the start of the home owners journey. With your dream home serving as the final destination you will most likely need to take a few stops on the way there. The logical step is to buy a house you can afford not one that lands you in economic turmoil. Consider your first home an investment that you can improve upon over time. Once the home is improved you can sell it and bring yourself one step closer to your dream home. Buying out of your league can be a huge problem so set a budget and find a home within your means.

    

5. Ask For Help 

   Don’t be determined to have a go at it alone. Buying a home is a complicated process and sometimes it really helps to have someone walk you through it step by step. Agents are more than willing to help you look through home listing, find what your looking for, and ultimately take you from start to finish.

The 3 Deadly Mistakes Homebuyers Make When Purchasing a Pre-Owned Western Pennsylvania Home.

Deadly Mistake #1
Thinking You Can’t Afford To Buy The Home You Really Want

Today, buying the home of your dreams is simpler than ever before. Many people who thought buying a home they wanted was impossible are now enjoying a comfortable lifestyle, in their very own new home!

Buying a home is the smartest financial decision you will ever make. In fact, most American homeowners would be financially broke at retirement if it weren’t for one saving grace - the equity in their home. Furthermore, mortgage rates are more flexible today than ever and tax allowances favor home ownership.

Real estate values have always steadily increased. Of course, there are always ups and downs, but the long-term trend is a regular increase. Meaning that every month, when you make a mortgage payment, the amount of money that you owe on the home decreases and the value increases. This *owe less/worth more* situation is called equity build-up and is the reason you can’t afford not to buy.

Even if you have little or no money for a down payment, or credit problems, chances are that you can still buy that new home. It just comes down to knowing the right strategies, and working with the right people.

Deadly Mistake #2
Purchasing a Home Without Hiring a Real Estate Agent To Represent You

Buying property is a complex and stressful task. In fact, it is often the biggest single investment you will make in your lifetime. At the same time, real estate transactions have become increasingly complicated. New technology, laws, procedures and competition from other buyers require buyer agents to perform at an ever-increasing level of professionalism. For many homebuyers, the process turns into a terrible, stressful ordeal. In addition, making the wrong decisions can end up costing you thousands of dollars. It does not have to be this way!

Work with a buyer’s agent who has a keen understanding of the real estate business and who is on your side. Buyer’s agents have a fiduciary duty to you. That means they are loyal to only you and are obligated to look out for your best interests. Buyer’s agents can help you find the best home, the best lender and the best inspector. Best of all, in some cases, the buyer’s agent is paid out of the seller’s commission, even though he/she works for you.

Trying to buy a home without a buyers agent at all is, well… unthinkable and a very deadly mistake!

Deadly Mistake #3

Purchasing The Home Without Hiring a Certified Home Inspector

Buying a home will probably the most expensive purchase of your life, so it’s very important your investment is a smart one. Sometimes during a sale hidden problems and concerns can be left undisclosed and unmentioned. A certified home inspector is hired to evaluate your new home and all of its major components at the time of the purchase. This can be a very effective bargaining tool at the closing of the sale when there are hidden faults in a home discovered. Modern day home inspectors use high-tech equipment and computer-based technology to help aid in the reporting process. When choosing a home inspector, it’s generally best to choose one from the local area of your potential new home. They have a better grasp of the area weather, soil conditions, and the means and methods the general contractors use. Having knowledge of this information is very important for evaluating your new home’s structural integrity.

If you don’t hire a home inspector before buying your home, it’s by far the deadliest mistake you can make.

Though you may have to wait a year or two after filing, buying a home after bankruptcy is possible. To learn more, read this article, which provides information on securing a post-bankruptcy mortgage loan.

If you are thinking about buying a home after bankruptcy, the first thing you will want to do is determine how long it has been since you filed. The longer you wait, the easier it will be to secure financing. Though most lenders recommend waiting at least two years, it may be possible get a mortgage loan sooner.

Buying a Home 1 Year After Bankruptcy

When buying a home after bankruptcy, you need to show that you have a positive credit history. This is especially true if you do not wait at least two years before applying for a mortgage loan. It is very important that all of the payments you were expected to pay in the last 12 months were paid. Late installment payments could make it difficult to get approved. You may also need a down payment of 3-10 percent to secure the loan.

Buying a Home 2 Years After Bankruptcy

Buying a home after bankruptcy will be much easier if you wait for at least two years after your bankruptcy was discharged. This will give you time to build new credit and show that you can make your payments on time. After a two-year period has ended, financing and reasonable interest rates will be relatively easy to secure. If you have a good payment history and the lender is able to verify your income, you may even be able to get 100% financing.

When buying a new house and have younger children, one thing you should make sure that the house is a child proof home. One thing to lookout for if you’re buying a house to make sure your buying a child proof home is where the house is located. If the house is located on a main street where a lot of cars pass by, it might not be the best location to raise children. It is recommended that if you have young children that you get a house that is not so close to a busy street like a main street.

Another thing to lookout for if you’re buying a house to make sure your buying a child proof home is the stairs in the house. If the stairs in the house is steep it can be dangerous for younger children. It is recommended that if you do get a house with steep stairs and you have younger children, that you restrict their access to the stairs. One way of doing this is to fence off access to the stairs.

One last thing to lookout for if you’re buying a house to make sure your buying a child proof home is to make sure all radiators are covered. The last thing you want is your child to get burned because he or she touches a hot radiator. If you do see a house that you like and the radiators are not covered, you can always buy covers for them. Radiator covers are not that expensive and it can keep your children safe. When it comes to buying a new house safety is very important especially if you have younger children.

If you’re about to enter the home buying process for the first time, one of the best things you can do is to study the overall process of buying a home.

By understanding the steps to buying a home, you will be gaining several benefits at once. For one thing, you’ll be able to prepare for the process by knowing what steps are involved. This is important, because many of the steps you go through later on require preparation in advance.

Let’s look at an example of this:

At the closing process, you will have to pay certain fees that are collectively known as “closing costs.” These include attorney fees, loan origination fees, document preparation, etc. So it’s important to start saving money early on the home buying process. Of course, the only way you would know about these expenses — and be able to prepare for them — is by becoming familiar with the entire home buying process.

The second benefit to studying the home buying process is that it will help you identify knowledge gaps. For example, making an offer is obviously a big part of the home buying process. So if you’re not sure how this process works, you can do further research into it.

But once again, the only way to know where your knowledge gaps lie is to study the entire home buying process.

Lastly, understanding the overall process will help you choose the best type of mortgage loan for your unique home-buying situation. This is where many home buyers make mistakes that come back to haunt them later on. Perhaps they choose the wrong type of loan for their situation, or maybe they get in over their heads with a high interest rate.

The first and most important step to buying a home is to study the overall process, find out where you knowledge gaps are, and begin filling in the blanks accordingly.