We keep hearing that it is a buyer’s market. Today, few critical factors, the economy, the unemployment rate and the fall of the mortgage industry drive the real estate market. Combined, these factors have created an environment in which many homes are selling for far below their value. Some of these homes are the result of foreclosure, but many are simply for sale by the owners who are attempting to cut their losses. Even with this buyer’s paradise environment, those interested in purchasing real estate for personal use or as an investment need to take care during the entire process.
Obtaining a loan is often the first hurdle. Because of the subprime mortgage scandal, many mortgage companies are taking extra precautions, making qualifying for a home loan more difficult than ever. Today’s real estate buyers should carefully analyze their credit score and work with a reputable lender to ensure the best terms and rates.
As tempting as it may be to snap up properties at today’s cutthroat prices, it is still important to review the property carefully. Employ a home inspector and a real estate appraiser to review the home thoroughly. Doing so will protect the buyer from purchasing a distressed property and ensure that the real estate they do choose is a viable investment.
It is a buyer’s market, but that does not preclude using common sense. Find a reputable lender and put down 20%. Have the home checked out by professionals and, most importantly, be sure that the monthly mortgage payment is feasible given the current economic conditions in the country.