How To Buy A House Q & A

Buying a house it is certainly a challenging endeavor. In today’s real estate world, two things are prevalent and will continue to be so for the foreseeable future. Home prices remain affordable while mortgage rates continue to offer home buying opportunities a for many first-time home buyers, move up buyers, real estate investors in people looking for second home opportunities.

While the US housing market is offering tremendous deals out there, there’s external factors at work presenting ongoing challenges to anyone looking to purchase real estate. In order to successfully close escrow on a house, do your research, and find the right information.

The challenges of home buyers face today.

  • Competition-mostly in lower end markets with the average house price range at $250,000, these markets present strong competitive markets where multiple offer situations occur prevalent. Stronger offers and/or cash buyers can present challenges home buyers and their real estate agents need to overcome.
  • Mortgage qualifying-this is no doubt a full loan documentation environment where every stone will be unturned and every financial information will be closely examined. Buying a house today is not easy, in fact it can be downright unpleasant, however the rewards far outweigh the inconveniences on the front end. It’s critical to work with a mortgage lender who understands the market and can only give you a combination of the best interest rate in terms, but deliver an expedient close of escrow.
  • Foreclosures-many of these bank owned properties need work. In many markets such as Nevada, some homes and neighborhoods need a tremendous amount of work in order to procure mortgage loan financing. Since these properties are unlendable, these homes are capped for cash buyers or real estate flip groups.
  • Short sales-these properties take longer to close escrow due to the banks agreeing to lose money on these transactions.

Perhaps a 1/3 of all home buyers today are looking for “story” lenders, meaning that their scenarios have more circumstances than the traditional vanilla financing. This promotes the need for FHA and government mortgage loan financing options. Other potential home buyers today have owned property before in the past and are also looking to reemerge as potential home buyers.

Find pertinent information and tips on how to buy a house in today’s market.

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